Oakland County man indicted in $4.75M Medicare fraud scheme at Detroit adult daycare

A federal grand jury in the Eastern District of Michigan returned an indictment charging Emory Matthews, 62, of Farmington Hills, Michigan, with conspiring to bill Medicare for psychotherapy services that an adult daycare center his wife owned never provided to patients.

From January 2020 through June 2025, Emory Matthews allegedly helped submit more than $4.75 million in false and fraudulent claims to Medicare.

Court records say that Matthews was a managing employee and administrator of New Beginnings Adult Center Inc., an adult daycare center in Detroit.

Medicare covers outpatient mental health services for depression, anxiety and substance use disorder. Mental health outpatient visits are often called counseling or psychotherapy. Treatments can be done individually, in group psychotherapy or family settings, and in crisis situations.

The indictment says that Matthews and his wife, Yolanda Matthews, submitted five years’ worth of false and fraudulent claims for individual and group psychotherapy services they did not provide.

They allegedly billed Medicare for people who were hospitalized or dead; used the names of former employees on false claims submitted to Medicare; and fraudulently concealed Emory Matthews’ exclusion from Medicare by failing to disclose his role as a managing employee of New Beginnings.

Matthews was previously convicted of soliciting and receiving illegal healthcare kickbacks and bribes stemming from his earlier work running the adult daycare center. As a result of that conviction, he was excluded from billing Medicare.

Yolanda Matthews pleaded guilty to one count of conspiracy to commit healthcare fraud on July 27.

Emory Matthews is charged with conspiracy to commit healthcare fraud and three counts of healthcare fraud. If convicted, he faces a maximum penalty of 10 years in prison on each count.

The FBI Detroit Field Office and Office of Inspector General at the U.S. Department of Health and Human Services performed the investigation.