Former DeSoto County Healthcare Owner Sentenced in $3.19 Million Medicaid Fraud Scheme
JACKSON, Miss. — A former DeSoto County healthcare business owner has been sentenced to five years in prison and ordered to repay more than $3.19 million in a Medicaid fraud case, Mississippi Attorney General Lynn Fitch announced Tuesday.
Katricia Smith, the former owner of KLS Medical Services LLC in DeSoto County, was sentenced after being convicted on one count of wire fraud.
According to the Mississippi Attorney General’s Office, Smith knowingly submitted false Medicaid claims during 2023 and 2024 for services that were never provided.
Madison County Circuit Court 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.
Attorney General Lynn Fitch said the case was part of an ongoing effort to protect public funds and combat fraud involving Mississippi’s Medicaid program.
The case was among 11 indictments announced in June as part of the National Health Care Fraud Takedown. According to the Attorney General’s Office, those cases involved allegations totaling more than $12.3 million in healthcare fraud.




