Kentucky Medical Biller Indicted Over Medicaid Fraud and Money Laundering Scheme
A Kentucky medical biller has been indicted on healthcare fraud and money laundering charges over an alleged multi-year scheme involving ten behavioral health providers and tens of millions of dollars in fraudulent Medicaid reimbursements.
The U.S. Attorney’s Office for the Eastern District of Kentucky said on August 27, 2026 that Jacqueline Sanders, 60, of Louisville, owner of AA’s Medical Coding and Billing Services LLC, was charged with one count of conspiracy to commit health care fraud, 25 counts of health care fraud and four counts of money laundering.
Fraudulent claims across ten providers
According to the indictment, Sanders recruited people unfamiliar with Medicaid requirements to open behavioral-health service entities, handled their credentialing and enrollment with Kentucky Medicaid, and then directed fraudulent billing across ten providers.
Prosecutors allege the scheme included claims for services that were never provided, including claims submitted for Medicaid members who were incarcerated, hospitalized or deceased. Sanders is also accused of using National Provider Identifiers belonging to licensed professionals without authorization, fabricating assessments and treatment plans, and billing excessive treatment hours regardless of medical need or supporting documentation.
Between 2020 and 2026, Sanders and alleged co-conspirators caused Kentucky Medicaid to pay tens of millions of dollars in fraudulent reimbursements, according to the indictment.
More than US$3.6 million allegedly received
The indictment alleges Sanders personally received more than US$3.6 million from the fraudulent billing operations. Prosecutors say proceeds were then used for luxury goods, vehicles, jewelry, travel, plastic surgery and real estate.
The Justice Department’s public release confirms four money laundering counts but does not identify the specific transactions underlying each count. AML Observatory therefore does not infer additional laundering routes beyond the conduct described by prosecutors.
Sanders made her initial court appearance on August 26. The investigation is being conducted by the FBI and the Kentucky Attorney General’s Office. The indictment is an accusation only, and Sanders is presumed innocent unless and until proven guilty.
