Four Individuals Indicted for Conspiracy to Commit Healthcare Fraud At Sober Homes

LEXINGTON, KY- Four individuals, Delores Jordan, 56, of Charlotte, NC, Dashawn Dawkins, 33, of Lexington, Ky., Jerome Davis, 51, of Indianapolis, Ind., and Ernest Williams, 51, of Lexington, Ky., have been indicted on charges of conspiracy to commit healthcare fraud, healthcare fraud, and conspiracy to receive kickbacks.

According to the indictment, Serenity Keeper's, LLC ("Serenity Keepers") was a sober home company based in Fayette County, Ky., that purported to provide mental health and substance abuse treatment services and housing for individuals enrolled in its program. Serenity Keepers allegedly used urine drug tests for their clients for non-medical reasons, such as ensuring sobriety. The indictment alleges that beginning in August 2019, Jordan, Serenity Keepers' owner, solicited kickbacks from a co-conspirator in exchange for the referral of Serenity Keepers' urine drug tests to various laboratories. The kickbacks were allegedly paid in the form of checks, cash payments, and wire transfers of approximately $1,300 every two weeks to Jordan's son, Dawkins. Beginning in October 2021, Jordan allegedly demanded the kickback amount increase to $5,000, based on the increased volume of urine drug tests referred by Serenity Keepers to the labs. Jordan allegedly received the increased amount through payments sent every two weeks to her boyfriend, Davis, paid through his company, X-Tremly for Christ LLC.

The indictment also alleges that the urine drug tests performed for Serenity Keepers' clients were not used for medical diagnosis and treatment, nor were they ordered by a treating medical provider, which are requirements for reimbursement by Medicare and Medicaid. According to the indictment, the medical providers who signed orders for urine drug tests were allegedly not providing any treatment to Serenity Keepers' clients for addiction, nor were they reviewing the results of the tests. The indictment alleges that Jordan, Dawkins, and Williams conspired to defraud Medicare and Kentucky Medicaid by causing approximately $26.7 million in these medically unnecessary urine drug tests to be fraudulently billed to Medicare and Kentucky Medicaid from August 2019 to March 2022.

In addition, the indictment alleges that Jordan, Dawkins, and Williams further defrauded Kentucky Medicaid by causing Serenity Keepers to fraudulently bill for peer support services. Between August 2019 and February 2022, Serenity Keepers allegedly billed Medicaid for six hours of peer support services per day, for every client enrolled in their program who had Medicaid coverage. The indictment alleges that a majority of the services billed were not provided by registered peer support specialists, not supervised by appropriate personnel, not provided at all, or not provided in accordance with state regulations governing such services.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office, and Russell Coleman, Kentucky Attorney General, jointly announced the indictment.

The investigation preceding the indictment was conducted by the FBI and the Kentucky Attorney General, Office of Medicaid Fraud and Abuse. The indictment was presented to the grand jury by Assistant U.S. Attorney Kate Smith.

Dawkins, Davis, and Williams' initial appearances have already been held. Jordan's initial appearance is scheduled for December 4. Jordan, Dawkins, and Williams each face a maximum of 10 years in prison, and Davis faces a maximum of 5 years in prison. They each face a $250,000 fine, plus any restitution determined by the Court. However, any sentence following a conviction would be imposed by the Court, after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.

Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.

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