V.I. Attorney General Gordon C. Rhea filed a civil suit against a psychotherapy group and its doctors for allegedly practicing without a license in the territory and billing Medicaid for $3,912,551 not covered by the federal program.
Rhea said RTS Services Unlimited 11, LLC, and Melinda Richards, Ashley Doway, and Duane Robinson violated the Virgin Islands False Claims Act between January 2020 and 2026 by allegedly providing psychotherapy, hypnotherapy, counseling, and other behavioral health services without licenses.
The Virgin Islands Department of Justice’s Medicaid Fraud Control Unit started investigating the medical group in 2024, Rhea said in a written statement, reviewing Medicaid claims data, provider enrollment records, licensing records, financial records, witness statements, and other evidence.
Richards, Doway, and Robinson allegedly provided behavioral health services to Medicaid beneficiaries, primarily children with behavioral and mental health needs, despite lacking the licenses required to independently render and bill for such services under Virgin Islands law.
The complaint alleges RTS and Richards held licenses authorizing testing, evaluation, and consultation services, but not for psychotherapy, hypnotherapy, counseling, and the other therapeutic behavioral health services for which they collected more than $408,000 in Medicaid reimbursement.
Because they allegedly lacked the licenses required to provide the services, the complaint alleges that the claims submitted to Medicaid were ineligible for reimbursement and seeks recovery of all Medicaid funds paid as a result of the alleged false claims. The lawsuit seeks damages, restitution, civil penalties, attorney’s fees, costs, disgorgement of improperly obtained funds, and all other relief authorized under the Virgin Islands False Claims Act and applicable law.
According to the complaint, RTS, together with its affiliated nonprofit organization, Passport2Prosperity, Inc., advertised and operated after-school and summer programs that included activities such as homework assistance, tutoring, snacks, beverages, and transportation.
Medicaid does not reimburse providers for after-school programs or summer enrichment programs. The complaint alleges that RTS and Melinda Richards sought and obtained Medicaid reimbursement by characterizing services provided through those programs as psychotherapy or other behavioral health services.
