North Carolina Department of Justice
North Carolina Department of Justice
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Attorney General Josh Stein Announces Health Care Fraud Conviction

Release date: 5/25/2018

(RALEIGH) Attorney General Josh Stein today announced that Carlos Brown was sentenced in federal district court in the Middle District of North Carolina for illegal healthcare kickbacks and was sentenced to five years of probation with one year of home detention. Carlos Brown was ordered to pay $393,000 in restitution to the North Carolina Medicaid Program.
“Cheating Medicaid wastes tax dollars and can cause harm to patients in need of medical care,” said Attorney General Stein. “Many of these patients are among our most vulnerable citizens. My office will continue to investigate fraud and abuse by healthcare providers to protect North Carolina’s taxpayers.”
The conviction of Carlos Brown resolves allegations that Carlos Brown was hired by a behavioral health company, Nature’s Reflections, Inc., to recruit employees and clients who were eligible for Medicaid services between 2001 and 2013. Brown was paid a percentage of the amounts billed to Medicaid by Nature’s Reflections, Inc. for clients he recruited. Brown received $393,000 in payments from Nature’s Reflections, Inc.

Nature’s Reflections, Inc. had offices throughout North Carolina, but its headquarters was located in Durham, North Carolina.

This conviction was obtained by the United States Attorney’s Office for the Middle District of North Carolina; the North Carolina Department of Justice, Medicaid Investigations Division; the Department of Health and Human Services, Office of Inspector General; Internal Revenue Service; the North Carolina Department of Health and Human Services, Division of Medical Assistance, Office of Compliance and Program Integrity; North Carolina State Bureau of Investigation; North Carolina Secretary of State; Alliance Behavioral Healthcare; Eastpointe; and  Cardinal Innovations Healthcare. 

About the Medicaid Investigations Division

Stein’s MID investigates fraud and abuse by healthcare companies and providers, as well as patient abuse and neglect in facilities that are funded by Medicaid. Medicaid is a joint federal-state program that helps provide medical care for people with limited income. To date, the MID has recovered more than $500 million in restitution and penalties for North Carolina.

Laura Brewer (919) 716-6484