Mississippi Healthcare Business Owner Sentenced to Five Years for Medicaid Fraud

A former Mississippi healthcare business owner has been sentenced to five years in prison after pleading guilty to wire fraud in a Medicaid fraud case involving millions of dollars in fraudulent claims.

Katricia Smith, former owner of KLS Medical Services, was sentenced to five years in prison and ordered to pay more than $3.19 million in Medicaid fraud restitution. [Photo: Mississippi Attorney General's Office]

Katricia Smith, 47, of Olive Branch, Mississippi, formerly owned and operated KLS Medical Services LLC in DeSoto County.

According to the Mississippi Attorney General's Office and the US Department of Justice, Smith submitted fraudulent claims to the Mississippi Division of Medicaid in 2023 and 2024 for services that were never provided.

Authorities also said she substantially overbilled for other services that were authorized under a district plan.

The US Justice Department's 2026 National Health Care Fraud Takedown case summary said the Mississippi Division of Medicaid paid approximately $4.48 million based on the allegedly fraudulent claims.

Smith was convicted of one count of wire fraud.

Madison County Circuit Judge Steve Ratcliff sentenced Smith to five years in the custody of the Mississippi Department of Corrections.

She was also ordered to pay $3,190,017.93 in restitution to the Mississippi Division of Medicaid.

The case was investigated by the Mississippi Attorney General's Office and the Mississippi Division of Medicaid Program Integrity and prosecuted by the Attorney General's Office.

The case was among 11 Mississippi healthcare fraud indictments announced in June as part of the National Health Care Fraud Takedown. Mississippi authorities said those cases involved more than $12.3 million in alleged healthcare fraud.