Repeat Felon Arrested and Charged in $4.75 Million Medicare Fraud Scheme at Detroit Adult Day Care

A repeat healthcare fraud offender has been arrested and charged in connection with a $4.75 million scheme to bill Medicare for psychotherapy services that were never provided at a Detroit adult day care center. A federal grand jury in the Eastern District of Michigan returned an indictment charging Emory Matthews, 62, of Farmington Hills, with conspiracy to commit health care fraud and three counts of health care fraud. His wife, Yolanda Matthews, who owned the center, pleaded guilty to conspiracy to commit health care fraud in July.

According to court documents, Emory Matthews served as a managing employee and administrator of New Beginnings Adult Center Inc. He had previously been convicted of soliciting and receiving illegal healthcare kickbacks and bribes from his earlier operation of the same facility, and was excluded from billing Medicare as a result.

The indictment alleges that between January 2020 and June 2025, Matthews and his wife submitted false claims for individual and group psychotherapy services that were never rendered. They billed Medicare for services purportedly provided to beneficiaries who were actually hospitalized at the time, and for services supposedly delivered to beneficiaries who had already died. They also used the names of former employees on false claims and concealed Matthews’ exclusion from Medicare by failing to disclose his role as a managing employee, as required by program rules.

This case reflects the government’s aggressive pursuit of healthcare fraud, particularly schemes that exploit Medicare and vulnerable beneficiaries. If convicted, Matthews faces a maximum penalty of 10 years in prison on each count. The investigation was conducted by the FBI Detroit Field Office and HHS-OIG. Whistleblowers with knowledge of similar fraud can pursue remedies under the False Claims Act through qui tam actions. Individuals aware of Medicare or Medicaid fraud are encouraged to consult experienced whistleblower attorneys.