Attorney General Jeff Jackson has announced a $4.7 million settlement with Steven Osbey of Kernersville over allegations of Medicaid fraud. The consent judgment follows an investigation into Reign & Inspirations, LLC, a behavioral health company co-owned by Osbey and Aljihad Shabazz.
"If health care providers try to game the system to pocket millions in taxpayer dollars, they should know that we’re going to come after them," stated Attorney General Jeff Jackson. "I’m fighting to protect our Medicaid program."
The investigation was conducted by the North Carolina Attorney General’s Medicaid Investigations Division (MID), the U.S. Attorney’s Office for the Western District of North Carolina, the FBI, and the Internal Revenue Service – Criminal Investigation (IRS-CI). It revealed that Reign & Inspirations allegedly billed for home visits that never took place between 2017 and 2020.
Shabazz had previously pleaded guilty in a related criminal case and received a sentence of 52 months in prison followed by supervised release, along with an order to pay restitution matching the amount settled in this civil case.
The Federal and North Carolina False Claims Acts allow governments to recover triple damages plus penalties for false claims. However, there has been no judicial determination or admission of liability regarding these civil claims.
The parallel investigations stemmed from MID's data mining efforts. Legal representation for the government was provided by Assistant U.S. Attorneys Caroline McLean and Seth Johnson alongside MID Civil Enforcement Attorney Michael Berger.
The MID is tasked with investigating fraud against Medicaid as well as patient abuse in facilities receiving Medicaid funding. Since its inception, it has recovered over $1 billion in restitution and penalties for North Carolina.
To report instances of Medicaid fraud or abuse within North Carolina, individuals can contact the MID at 919-881-2320. The division receives significant funding from federal grants complemented by state contributions.