A Phenix City provider will pay $300,000 to resolve federal allegations that it billed Alabama Medicaid for life-skills services to at-risk children that were never delivered, U.S. Attorney Thomas Govan reported to the public on Tuesday.

Govan announced the deal as part of the U.S. Department of Justice’s 2026 National Health Care Fraud Takedown, which is reportedly the largest coordinated health care fraud sweep in the department’s history.

The civil settlement, filed in federal court, resolves allegations against New Life Center for Change, Inc. — which operated as Teen University — and its 72-year-old owner, Alfonza Smith, of Smiths Station.

According to the government, the east Alabama provider billed the Alabama Medicaid Agency for “Basic Living Skills” services for the at-risk children in its care that never took place.

“Protecting the integrity of Medicaid and ensuring that vulnerable children receive the services they are promised are among our highest priorities,” Govan said. “When providers bill for care that was never delivered, they waste taxpayer dollars and betray the trust placed in them.”

Govan credited the Alabama Medicaid Fraud Control Unit — which operates under Attorney General Steve Marshall’s office and initiated the investigation — and the U.S. Department of Health and Human Services Office of Inspector General for the work behind the settlement.

Marshall also announced the case as part of his office’s participation in the national takedown.

“The National Healthcare Fraud Takedown exists because fraud in government healthcare programs is a serious, ongoing threat,” Marshall said. “When providers take taxpayer money without delivering the services they promised, we will find them, and there will be consequences.”

According to the DOJ, the settlement is part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death.

It also represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history, Govan reports.