FOR IMMEDIATE RELEASE
Friday, January 30, 2026
Contact: comms@ncdoj.gov
RALEIGH – Today, Attorney General Jeff Jackson announced Kathy Briggs, co-owner of Neveah & Company, operating as Restorative Medical, was sentenced to 24 months in prison, followed by two years of supervised release, which includes 13 months of home confinement, and ordered to pay $2,483,855.72 in restitution after pleading guilty to one count of health care fraud for her role in a scheme to submit fraudulent claims for incontinence products to Medicaid.
“Medicaid exists to provide care for those who need it most,” said Attorney General Jeff Jackson. “When providers cheat the system, it puts patients and taxpayer dollars at risk. We will continue working with the US Attorney’s Office in the Middle District of North Carolina and all our law enforcement partners to stop this fraud.”
Restorative Medical, located in Winston-Salem, had contracts with approximately 50 assisted living facilities across North Carolina to provide incontinence supplies, such as adult diapers, for residents. From around 2018 and January 2024, Briggs directed Restorative Medical to repeatedly submit false claims to Medicaid for the maximum number of incontinence products per patient that Medicaid would reimburse.
Restorative Medical employees visited assisted living facilities to deliver products, count supplies, and restock inventory. If a facility already had 100 diapers, Restorative Medical would deliver 100 more to reach 200 diapers, which is the maximum amount Medicaid would cover each month per beneficiary. 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.
This case was investigated by 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.
About the Medicaid Investigations Division (MID)
The Attorney General’s MID investigates fraud and abuse by health care companies and providers, as well as patient abuse and neglect in facilities that are funded by Medicaid. Medicaid is a joint federal-state program that helps provide medical care for people with limited income. To date, the MID has recovered more than $1 billion in restitution and penalties for North Carolina.
MID receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $8,535,748 for Federal fiscal year (FY) 2024. The remaining 25 percent, totaling $2,845,248, is funded by the State of North Carolina. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
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