RICHMOND, Va. — The operator of a Richmond mental health agency faces federal charges after prosecutors say she ran a years-long Medicaid fraud scheme that targeted low-income and homeless Virginians.
The Department of Justice says Advancing Communities Everywhere, known as ACE, fraudulently billed Medicaid nearly $50 million from 2022 through 2026.
Prosecutors charged Mikia Noble, ACE's chief operating officer, in connection with the alleged scheme. They say Noble and an unnamed co-conspirator targeted low-income and homeless people by purporting to provide them with community stabilization and mobile crisis services that they did not receive as billed and often did not need. Those services are designed to help people suffering a short-term behavioral health emergency.
Prosecutors allege Noble bribed homeless people with free hotel rooms to influence them to use ACE's services. They say ACE cycled patients through services and repeatedly re-admitted them — not because of clinical need — but to generate reimbursements from Medicaid.
According to prosecutors, ACE routinely billed Medicaid as though two mental health professionals participated in treatments when only one actually did, which fraudulently doubled the amount of payment the company received.
Of the $49.6 million ACE is accused of fraudulently billing, Medicaid paid $38.6 million. Prosecutors say Noble personally profited about $2 million and used the money on travel, luxury clothes, shoes, and jewelry.
Prosecutors are seeking to recover the proceeds from the alleged fraud.
CBS 6 reached out to Noble's defense attorney, who said they will only be responding to the allegations in court.
This is a developing story. Email the CBS 6 Newsroom if you have additional information to share.
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