Medicaid Fraud Sentencing Holds Mother, Daughter Accountable

A mother and daughter from Florida were convicted in a multi-state scheme that bilked Wyoming Medicaid and other programs of more than three-quarters of a million dollars, and they now face prison time, home confinement and large restitution orders.

Tera Marie Campbell, 47, of Maitland, Florida, and her daughter, Tayler Ann Krauss, 27, of McDavid, Florida, were sentenced after pleading guilty to conspiracy to commit healthcare fraud tied to a behavioral health clinic. The court ordered $735,717.63 in restitution to Wyoming Medicaid for losses connected to the conspiracy. The case spans alleged misconduct across Wyoming, North Dakota and federal programs.

Campbell received a 36-month prison term followed by three years of supervised release, while Krauss was given two years of home confinement. The judge also ordered Campbell to pay $135,890.91 to the military’s Tricare program, with Krauss held co-responsible for up to $71,509.44 of that amount. Campbell faces a separate North Dakota judgment that included a three-year suspended sentence, three years of supervised release, and an additional $225,000 repayment to North Dakota’s Medicaid program.

Campbell owned The Olive Branch, LLC, a behavioral health clinic that provided services for children with autism in Cheyenne, Wyoming, and Minot, North Dakota, according to court filings. Prosecutors say the clinic was the vehicle for a multi-year fraud scheme that targeted Medicaid and other programs. The formal record describes patterns of false documentation and billing that inflated reimbursements.

Investigators say the fraud included claims for uncertified care, billing for higher-paying services that were not provided, and charges for services that never occurred. Some claims even listed dates when the clinic was closed or when Campbell was out of the country on vacation. The filings describe upcoding and phantom billing as central tactics in the scheme.

Krauss worked as a medical biller and assisted with service documentation for the clinic from December 2020 through October 2022, according to the indictment. The investigation found the clinic relied heavily on untrained staff and falsified certification and supervision records. Prosecutors say the pair submitted fraudulent claims even after they knew the services did not meet Medicaid requirements.

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The pair was indicted on May 21, 2025, and both pleaded guilty on April 9, 2026. U.S. District Court Judge Kelly H. Rankin sentenced Krauss on June 29 and Campbell on June 30 in Cheyenne. Those dates and rulings closed the federal portion of a broader, multi-jurisdictional inquiry.

This prosecution is the result of a joint investigation by the Wyoming Attorney General’s Medicaid Fraud Control Unit, the Federal Bureau of Investigation, and the U.S. Department of Defense’s Defense Criminal Investigative Service. Special Assistant U.S. Attorney Travis Kirchefer handled the prosecution for the government. Authorities say cooperation between agencies was key to tracing claims across states and programs.

“Medicaid fraud steals taxpayer dollars from programs that millions of Americans depend on and undermines care for vulnerable patients,” said U.S. Attorney Darin Smith. “I am committed to holding accountable those who exploit these programs for personal gain. Working alongside our federal and state law enforcement partners, we will continue to aggressively investigate and prosecute healthcare fraud to protect public resources and preserve the integrity of our nation’s healthcare system.”

Wyoming Attorney General Keith Kautz praised the work of his office’s Medicaid Fraud Control Unit and emphasized interagency cooperation. “This prosecution represents a successful partnership between state and federal law enforcement agencies to combat fraud,” he said. The unit focuses on fraud and related crimes committed by Medicaid providers as well as abuse, neglect and financial exploitation in Medicaid-funded settings.

Authorities provided guidance for members of the public who suspect fraud, noting federal and state reporting options. Suspected fraud against Medicaid or Medicare can be reported to the U.S. Department of Health and Human Services’ Office of Inspector General at 1-800-HHS-TIPS (1-800-447-8477). Wyoming residents can contact the Wyoming Medicaid Fraud Control Unit toll free at 1-800-378-0345 for local reporting and assistance.

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