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Michigan adult daycare owner pleads guilty to $500K Medicare fraud scheme

A Michigan adult daycare center owner has pleaded guilty to fraudulently billing Medicare for more than $500,000 for psychotherapy services that were never provided to her residents. 

According to court records, 58-year-old Yolanda Matthews of Farmington Hills pleaded guilty on July 27 and admitted to billing and submitting false and fraudulent claims to Medicare for psychotherapy services that were not provided. 

Federal officials say Matthews, who was charged as part of the Department of Justice's 2026 national healthcare fraud takedown, admitted to billing for services while the Medicare beneficiary was hospitalized. Authorities say Matthews admitted to forging claims from social workers who were no longer employed by the daycare center and billing Medicare for psychotherapy services after residents had died. 

Authorities claim Matthews submitted more than $539,000 in false and fraudulent claims to Medicare.  

Matthews is scheduled to be sentenced on Nov. 18. She faces up to 10 years in prison. 

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