Susanne Kee and her daughter, Bethanne Kee-Medran, have each been sentenced to four and a half years in prison after admitting to their roles in a Medicaid fraud and identity theft scheme involving children and adults in Silver City, New Mexico.
The two women pleaded guilty to Medicaid fraud, conspiracy to commit Medicaid fraud, identity theft and identity theft conspiracy. Their sentences follow an investigation into their operation of Kids in Need of Support Services, or KISS, a nonprofit after-school program.
The case involved more than $1.6 million in fraudulent Medicaid claims, according to the New Mexico Department of Justice. Investigators determined that Medicaid was billed for services that were not provided and that personal information belonging to patients was used without authorization.
The investigation found that Social Security numbers and Medicaid identification numbers belonging to children and adults were used without the knowledge or consent of the individuals or their parents and guardians.
Investigators also found that false psychological disorders were documented for some children to support claims for services. Those entries could create inaccurate medical histories that may affect victims long after the fraudulent activity occurred.
The financial consequences of the case extend beyond the prison sentences. A total of $6.6 million in restitution and civil penalties was secured as part of the case. That amount includes $1.6 million in criminal restitution and $4.9 million in civil penalties.
The investigation began after New Mexico authorities examined the activities of KISS, which operated as an after-school and summer program in Silver City. Court records later detailed allegations that the organization billed Medicaid for behavioral health services that victims and former employees said they had not received.
The original 2025 case involved 91 counts of fraud and identity theft. At that stage, prosecutors alleged that at least $1,626,496 in Medicaid claims had been submitted for services that were never rendered.
Attorney General Raúl Torrez said the defendants exploited a program intended to help vulnerable children and families and emphasized the effort to recover taxpayer money obtained through the scheme.
The case was investigated by the New Mexico Department of Justice’s Medicaid Fraud and Elder Abuse Bureau. The bureau investigates and prosecutes Medicaid-provider fraud, including claims for services that were never provided.
With the sentencing and financial penalties now in place, the case represents a significant enforcement action against Medicaid fraud in New Mexico, particularly because investigators found that the alleged conduct also involved the creation of false medical information for children.
