Eight Charged in $21M Cross-Border Medicaid Scam Targeting Disabled South Carolina Children

COLUMBIA, S.C. — Federal and state officials have charged eight individuals in a sweeping Medicaid fraud scheme that allegedly targeted severely disabled South Carolina children, billing for services never rendered — sometimes to children who didn’t even exist.

The scam, which resulted in more than $21 million in fraudulent claims, was part of a broader nationwide healthcare fraud crackdown involving 324 people across 12 states, according to the U.S. Department of Justice.

Fraudsters Exploited Loopholes and Vulnerable Patients

At a Monday press conference in Charlotte, South Carolina Attorney General Alan Wilson, North Carolina Attorney General Jeff Jackson, FBI Special Agent Jim Barnacle, and U.S. Attorney Russ Ferguson unveiled charges in what they dubbed “Operation Border War.”

The alleged fraud scheme centered on a South Carolina law that allowed Medicaid providers to enroll companies within 25 miles of the state border — a loophole exploited by out-of-state scammers.

“You have to wonder if these people went across state borders to hide the scheme,” Ferguson said.

According to South Carolina Public Radio, the fraudulent operation involved the creation of fake companies, recruitment of licensed behavioral healthcare providers, and theft of national provider IDs to file bogus Medicaid claims — including on behalf of children who were quadriplegic, nonverbal, or severely autistic.

Bogus Services, Fake Children, and Bribes

Many of the children listed in claims never received services — and in some cases, never existed at all.

Investigators noticed red flags, such as reports stating that nonverbal, wheelchair-bound children were “running around” and “disruptive” in therapy, prompting deeper investigation.

“By way of example, on a child who was a quadriplegic, they were saying this child was being disruptive and running around the classroom,” Wilson noted.

Federal agents even created fake beneficiaries to track fraudulent claims as they were filed, confirming the extent of the scheme. Meanwhile, the fraud ring bought and sold Medicaid ID numbers, reportedly offering them for $200–$300 each.

Some members of the scheme allegedly also paid and received bribes and kickbacks, authorities added.

Who Was Charged in the Scheme

The following individuals face charges of conspiracy to commit healthcare fraud, unlawful purchase of beneficiary IDs, and/or money laundering:

• Donald Calvin Saunders, 62, of Charlotte, NC

• Vanessa Ragin-Boatright, 59, of Manning, SC

• Dajuan Strickland, 47, of Charlotte and Buffalo, NY

• Cynthia Jenkins Harris, 60, of Elgin, SC

• Latarsa Hitchcock, 56, of Jacksonville, NC

• Stephanie Corbett, 59, of Jonesboro, GA

• Karen McClary, 51, of Kingstree, SC

A separate defendant, David Corey Hill, 54, of Concord, NC, has agreed to plead guilty to conspiracy charges and is expected to appear in federal court soon.

‘Most Vulnerable Among Us’ Were Exploited

South Carolina Attorney General Wilson said nearly all of the children whose data was used were severely disabled. He emphasized the gravity of the crime:

“These were children who were quadriplegic, nonverbal… or had significant mental health issues. [Scammers] were billing for services these children never received.”

Jackson also issued a warning to healthcare scammers, noting that new forensic tools allow investigators to detect unusual billing patterns faster than ever.

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