DOJ Press Releases (all components) · October 28, 2026 · Primary source
Owner of Now-Closed Adult Family Home Sentenced to Federal Prison for Healthcare Fraud
Summary
The owner of Lordan Care Adult Family Homes was sentenced to 28 months in federal prison and ordered to pay $1,253,920.47 in restitution to Medicaid after billing for residential caregiver hours never worked, including fictitious 24-hour one-on-one care, between July 2019 and December 2020. The U.S. District Court for the Eastern District of Wisconsin characterized the conduct as the functional equivalent of grand larceny and emphasized deterrence. The FBI and IRS Criminal Investigation jointly investigated the case.
What this may mean
The sentence imposes full restitution of over $1.25 million to the Medicaid program and 28 months of incarceration, with the court explicitly invoking deterrence to signal consequences for Medicaid billing fraud in residential care settings. The case targets upcoded staffing claims in Medicaid-funded adult family home programs, a billing model also used by SNF, home health, and group-home operators.
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