Former Home Care Agency Owner Sentenced for Multi-Million Dollar Medicaid Fraud in Pennsylvania
Last updated 2026-08-23 · Source: attorneygeneral.gov
Primary source: attorneygeneral.gov: Former Home Care Agency Owner Sentenced for Multi-Million Dollar Medicaid Fraud in Pennsylvania
The former owner of a Montgomery County, Pennsylvania, home care agency has been sentenced to prison for her involvement in a $1.76 million Medicaid fraud scheme. The scheme involved approving kickback arrangements, assigning fraudulent caregivers, and billing for services not rendered between 2020 and 2023.
What this means for your practice
This enforcement action underscores the severe consequences of Medicaid fraud, serving as a critical reminder for all healthcare businesses, including telehealth providers, medspas, dental practices, and chiropractic offices, that stringent compliance is non-negotiable when billing government programs. The focus on individuals, particularly owners and executives, indicates that personal accountability for fraudulent schemes remains a top priority for state and federal authorities. Practices must implement robust compliance programs, including regular audits, employee training, and clear policies against kickbacks and billing for unprovided services, to mitigate similar risks and protect both their financial viability and the liberty of their leadership.
HARRISBURG, PA – Attorney General Dave Sunday announced the sentencing of a former Montgomery County home care agency owner for her role in overseeing a multi-million dollar Medicaid fraud scheme. Stephanie Mobley, 54, of King of Prussia, who owned ComfortZone Home Health Care, LLC, was sentenced to state prison and ordered to pay restitution for defrauding the Medicaid program of $1.76 million. This case highlights the aggressive enforcement stance taken by state and federal authorities against those who exploit vital healthcare programs for personal gain.
Details of the Fraud Scheme
According to the Attorney General's announcement, the criminal conduct occurred between 2020 and 2023 while Mobley owned ComfortZone Home Health Care, LLC. Mobley pleaded guilty to Medicaid fraud and theft by deception. Her admitted involvement included approving specific kickback arrangements, assigning phony caregivers to clients, and actively recruiting clients to participate in the illicit scheme. These actions led to the submission of claims for reimbursement for services that were never actually provided to vulnerable Pennsylvanians.
The investigation, a two-year joint effort by the Pennsylvania Office of Attorney General's Medicaid Fraud Control Section and the Federal Bureau of Investigation (FBI), revealed a broader conspiracy. Mobley, along with her daughter and CEO, Naya Campbell, and 18 other individuals, conspired to defraud the Medicaid program. All but one of the 20 defendants involved in the scheme have pleaded guilty, indicating a widespread pattern of fraudulent activity within the agency.
Sentencing and Accountability
On Wednesday, a Montgomery County judge sentenced Stephanie Mobley to a significant period in state prison, ranging from 17 months to 10 years. In addition to the prison sentence, Mobley was ordered to pay full restitution in the amount of $1.76 million, matching the total amount defrauded from the Medicaid program. Senior Deputy Attorney General Benjamin McKenna prosecuted Mobley's case.
Attorney General Sunday emphasized the gravity of the offenses, stating, “The defendant made these criminal acts a part of her routine business practices, while also employing others to steal from a program intended to provide critical care to vulnerable Pennsylvanians.” He further affirmed the commitment of his office to hold accountable “those who exploit Medicaid programs as a means to fulfill personal greed.” This statement underscores the prosecutorial intent to deter similar fraudulent activities and protect taxpayer-funded healthcare programs.
The Role of Medicaid Fraud Control Units
This case also sheds light on the structure and funding of the Pennsylvania Medicaid Fraud Control Unit (MFCU). The unit plays a crucial role in investigating and prosecuting fraud and abuse within the state’s Medicaid program. The Pennsylvania MFCU receives substantial federal funding, with 75 percent of its budget derived from the U.S. Department of Health and Human Services (HHS) under a grant award totaling $13,491,632 for federal fiscal year (FY) 2026. The remaining 25 percent, amounting to $4,497,207 for FY 2026, is funded by the Commonwealth of Pennsylvania. This shared funding model emphasizes the collaborative effort between state and federal agencies in combating healthcare fraud.
The significant resources allocated to these units demonstrate the ongoing commitment at both federal and state levels to detecting, investigating, and prosecuting Medicaid fraud. Such units are vital in safeguarding the integrity of the Medicaid program and ensuring that funds are directed towards legitimate patient care rather than diverted through criminal schemes.
Broader Implications for Healthcare Providers
While this specific case involved a home care agency, the principles of accountability and the types of fraudulent activities observed are highly relevant across the entire spectrum of healthcare providers. Telehealth brands, medspas, dental practices, chiropractic offices, and other healthcare businesses that bill Medicaid or other government healthcare programs face similar regulatory scrutiny. The enforcement action against ComfortZone Home Health Care, LLC, serves as a stark warning:
- Personal Accountability: Owners, executives, and even employees can face severe personal penalties, including prison sentences and significant restitution orders, for their direct or indirect involvement in fraudulent billing practices.
- Types of Fraud: The scheme involved kickbacks and billing for services not provided. These are common forms of fraud that authorities actively target. All providers must ensure their billing practices accurately reflect services rendered and comply with anti-kickback statutes.
- Documentation and Oversight: Accurate and thorough documentation is paramount. Providers must be able to substantiate all claims submitted for reimbursement. Robust internal controls and oversight mechanisms are essential to prevent fraudulent activities by staff members.
- Compliance Programs: The best defense against such enforcement actions is a proactive and effective compliance program. This includes regular risk assessments, staff training on fraud, waste, and abuse, internal auditing, and clear channels for reporting concerns without fear of retaliation.
- Joint Investigations: The collaboration between state Attorneys General and federal agencies like the FBI is a common and effective strategy for uncovering complex fraud schemes. This means providers are subject to oversight from multiple regulatory bodies.
Healthcare businesses must view this case not as an isolated incident but as an example of ongoing and intensified enforcement efforts aimed at protecting government healthcare programs. Implementing and continually refining a comprehensive compliance framework is not merely a best practice; it is a critical necessity for operational stability and legal protection.
Key Facts
| Detail | Value | |---|---| | Perpetrator | Stephanie Mobley, former owner of ComfortZone Home Health Care, LLC | | Fraud Amount | $1.76 million | | Sentence | 17 months to 10 years in state prison | | Restitution Ordered | $1.76 million | | Criminal Conduct Period | Between 2020 and 2023 | | Investigating Agencies | Pennsylvania Office of Attorney General Medicaid Fraud Control Section and FBI |
Frequently Asked Questions
What type of fraud was committed by ComfortZone Home Health Care, LLC?
The fraud scheme involved approving kickback arrangements, assigning phony caregivers to clients, and recruiting clients to participate in a scheme to bill Medicaid for services that were not actually provided.
Who was held accountable in this Medicaid fraud case?
The former owner, Stephanie Mobley, her daughter and CEO Naya Campbell, and 18 other individuals were involved in the conspiracy. Mobley was sentenced to prison and ordered to pay restitution.
What was the financial impact of this fraud scheme?
The scheme defrauded the Medicaid program of $1.76 million, which Mobley has been ordered to pay back in restitution.
What penalty did the former owner receive?
Stephanie Mobley was sentenced to 17 months to 10 years in state prison and ordered to pay $1.76 million in restitution.
Which government agencies investigated this case?
The case was the result of a two-year joint investigation conducted by the Pennsylvania Office of Attorney General Medicaid Fraud Control Section and the FBI.