MONTGOMERY – Alabama Attorney General Steve Marshall announced the successful resolution of a healthcare fraud case that resulted in a $300,000 settlement as part of the 2026 National Healthcare Fraud Takedown, a nationwide law enforcement initiative coordinated by the U.S. Department of Justice.

The annual operation brings together federal and state agencies to investigate and prosecute fraud involving government-funded healthcare programs, including Medicaid.

According to the Attorney General’s Office, the settlement was reached June 18 by the U.S. Attorney’s Office for the Middle District of Alabama with Alfonza Smith, 72, of Smiths Station, owner of Teen University in Phenix City.

Teen University had contracted with the Alabama Department of Human Services to provide room, board and services to children with emotional and behavioral management needs. Under the agreement, the facility was required to provide each resident with two hours of Basic Living Skills instruction each day.

An investigation by the Attorney General’s Medicaid Fraud Control Unit, initiated following a referral from the Alabama Medicaid Agency’s Program Integrity Unit, determined that the required Basic Living Skills services were not routinely provided to residents.

The findings were referred to the U.S. Attorney’s Office, which filed a lawsuit under the Federal False Claims Act. The case was resolved with Teen University, which is no longer a Medicaid provider, agreeing to repay $300,000 to the Alabama Medicaid Agency.

Attorney General Marshall said healthcare fraud remains a serious threat to taxpayer-funded programs and pledged continued enforcement against those who misuse public funds.

Marshall also recognized Assistant U.S. Attorney MaryLou Bowdre and members of the Attorney General’s Medicaid Fraud Control Unit for their work in bringing the case to a successful conclusion.