Greensboro, N.C. – A Yadkinville woman was sentenced to 24 months of imprisonment, 13 months of home detention, and two years of supervised release in connection with a scheme to submit fraudulent claims for incontinence products to Medicaid, announced United States Attorney Dan Bishop of the Middle District of North Carolina (MDNC). Kathy Briggs, 65, pled guilty to one count of health care fraud on October 8, 2025. The court also ordered Briggs to pay restitution totaling $2,483,855.72.According to court documents, Briggs co-owned Neveah & Company d/b/a Restorative Medical located in Winston-Salem, North Carolina. Restorative Medical had contracts with approximately 50 assisted living facilities across the state to supply incontinence supplies, such as adult diapers, and other products for the residents in those facilities. Between around 2018 and January 2024, Restorative Medical, at Briggs’s direction, consistently and fraudulently submitted claims to Medicaid for the maximum number of incontinence products per patient that Medicaid would reimburse. When employees of Restorative Medical went to assisted living facilities to deliver products, they would count supplies and restock inventory. For example, if there were already 100 diapers on the shelf, Restorative Medical would deliver 100 more diapers to reach 200 — the maximum quantity Medicaid would reimburse per beneficiary each month. However, at Briggs’s direction, Restorative Medical would consistently submit claims to Medicaid for 200 diapers (or the maximum allowable amount), without regard to how many diapers Restorative Medical actually delivered to the facility. Over the course of the scheme, Medicaid reimbursed Restorative Medical approximately $2.4 million to which it was not entitled.The Department of Health and Human Services – Office of Inspector General, North Carolina Attorney General’s Office, Medicaid Investigations Division, the United States Department of Defense – Office of Inspector General, the United States Department of Veterans Affairs – Office of Inspector General, and the Federal Bureau of Investigation, are investigating the case, and it is being prosecuted by Assistant United States Attorney Ashley Waid and Special Assistant United States Attorney Daniel Spillman.###
Source: U.S. Department of Justice