Delores Jordan of Charlotte, North Carolina, and Ernest Williams of Lexington, Kentucky, were sentenced on April 24 to 60 months in prison and five years of probation respectively for their involvement in a kickback conspiracy and health care fraud. U.S. District Judge Karen Caldwell issued the sentences following their roles connected to Serenity Keeper’s, LLC, a sober home company based in Fayette County.
The case highlights concerns about fraudulent practices within organizations meant to provide substance abuse treatment services. According to authorities, these actions led Medicaid and Medicare to pay nearly $2.6 million for unnecessary urine drug testing referred by Serenity Keepers in exchange for unlawful kickbacks.
Court documents show that beginning in fall 2019 through February 2022, Jordan solicited kickbacks from an individual for referring urine drug testing from Serenity Keepers to various labs. The payments increased over time, with one co-defendant receiving $5,000 as consulting fees via checks or electronic transfers. Williams operated several sober homes under the Serenity Keepers name during this period and performed urine drug tests not ordered or reviewed by medical providers.
Serenity Keepers also billed Medicaid for peer support services that were not actually provided by licensed specialists between August 2019 and March 2022. Under Jordan’s direction, Williams claimed residents received six hours of daily peer support services despite knowing this was false. As a result, he received more than $365,000—a portion of what was billed—for managing the homes.
Other individuals involved have also faced legal consequences: Dashawn Dawkins was convicted earlier in April; Lily Bell pled guilty to aggravated identity theft; Jerome Davis pled guilty to his role in the scheme and received just over one year of incarceration.
Under federal law, both Jordan and Williams must serve at least 85 percent of their sentences before being eligible for release. Upon release they will be supervised by the U.S. Probation Office for three years.
Jason Parman (First Assistant United States Attorney), Olivia Olson (Special Agent in Charge at FBI Louisville), and Russell Coleman (Kentucky Attorney General) jointly announced the sentences. The investigation involved both the FBI and Kentucky Attorney General's Office of Medicaid Fraud and Abuse; Assistant U.S. Attorney Kate K. Smith prosecuted the case.
The United States Attorney's Office for the Eastern District of Kentucky enforces federal laws while maintaining community safety through prosecutions as well as partnerships with other agencies according to its official website. The office works under the Department of Justice according to its official website serving this region according to its official website with responsibilities including prosecuting criminal cases according to its official website. It has a history dating back to early attorneys who held notable positions such as seats on the Supreme Court or governor roles according to its official website. Community initiatives address issues like elder protection or drug abuse prevention according to its official website, working closely with local task forces such as Elder Justice Task Force or Heroin Education Action Team according to its official website.
