Tuesday, August 18, 2026

Recovery Centre USA, CEO Warrick Stewart to pay U.S. govt $15 million over fraud allegations

The scheme reportedly cost the U.S. government millions of dollars.

• May 15, 2026
Warrick Stewart
Warrick Stewart(Credit: Amazon.Ca)

Recovery Centre of USA and its CEO, Warrick Stewart, have agreed to pay $15.2 million to the U.S. government to settle fraud allegations brought by private citizens over inflated Medicaid billings for children with mental health needs in Maryland, Kentucky and Ohio.

Authorities alleged that the centre operated the Aspire Day Programme for children with behavioural and mental health conditions while submitting exaggerated payment claims between August 2022 and June 2025.

Although Medicaid is designed to cover only healthcare services, Recovery Centre facilities in Ohio and Kentucky allegedly billed the government for non-medical activities, including education, lunch breaks and recreational time for children.

The scheme reportedly cost the U.S. government millions of dollars, as the inflated claims were routinely paid.

Prosecutors also raised concerns about staffing, alleging that the centre misrepresented the qualifications of personnel providing care. While claims were submitted as though services were delivered by licensed healthcare professionals, authorities said much of the work was carried out by lower-level staff without the required certifications.

Billing for highly credentialled practitioners typically attracts higher reimbursements and officials said this misrepresentation resulted in overpayments.

“Vulnerable populations, like children who need behavioral health services, deserve to be treated by qualified clinicians,” Jason Parman, First Assistant United States Attorney for the Eastern District of Kentucky said, reacting to the settlement. “Our office is committed to investigating behavioural healthcare fraud to ensure that Kentuckians receive necessary medical care and that Medicaid programs only pay for covered services.”

Susan Edwards, chief counsel for the Department of Health and Human Services Office of Inspector General (HHS OIG) echoed similar sentiments.

“HHS OIG remains committed to combatting Medicaid fraud and enforcing compliance with billing requirements,” said Ms Edwards. “In connection with today’s settlement, Recovery Center has entered into a five-year Corporate Integrity Agreement with HHS OIG. This agreement imposes strengthened compliance obligations to ensure Recovery Center establishes and maintains robust systems that protect Medicaid funds and uphold the delivery of appropriate, compliant services to beneficiaries.”

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

farmers

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

National Drug Law Enforcement Agency (NDLEA)

Lagos

NDLEA intercepts 184.5kg cocaine from Lagos courier firm, nabs two suspects

Mr Marwa said the seizure further exposed Nigeria’s use as a transit hub for illicit drugs destined for foreign countries.

Solomon Lar

States

Lar leadership institute inaugurates planning committee

A committee has been inaugurated to oversee preparations for the formal launch of the Solomon and Mary Lar Institute for Leadership scheduled for October 27 in Abuja.

Troops

States

Troops capture alleged ISWAP terrorists, free kidnapped Cameroonian

Troops of Operation ‘HADIN KAI’ apprehended three suspected ISWAP terrorists, recovered weapons and rescued a Cameroonian national allegedly abducted by terrorists in Borno.

Oluyede

NationWide

Civil-military cooperation needed to defeat terrorists: Defence Chief

Defence chief Olufemi Oluyede says military strength alone cannot defeat terrorism without protecting civilians and building community trust.

Kano State Consumer Protection Council (KSCPC)

Health

Consumer protection council seizes multimillion-naira expired products from Kano supermarket

A supermarket, SUFAYE Investment, has handed over damaged and expired products worth over N28 million to the Kano State Consumer Protection Council for disposal.