$6.6M Restitution for Mother-Daughter Afterschool Medicaid Fraud

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Attorney General Raúl Torrez Announces $6.6 Million Restitution for Mother-Daughter Duo Leading Afterschool Program Medicaid Fraud and Child Identity Theft Scheme

• April 13, 2026

Silver City, NM – This afternoon, a Sixth Judicial District Court judge accepted Attorney General Raúl Torrez’s plea agreement against operators of an afterschool program who stole the identities of children, filed over a million dollars in fraudulent Medicaid claims, and documented fabricated child psychological disorders. Both Susanne Kee and her daughter Bethanne Kee, pled guilty to felonies including Medicaid Fraud, Conspiracy to Commit Medicaid Fraud, 35 counts of Theft of Identity and Theft of Identity Conspiracy. The agreement stipulates $6.6 million dollars in restitution and civil penalties, as well as up to nearly five years of incarceration for each defendant. A sentencing hearing will be scheduled for a future date.

“This agreement ensures that these individuals will be held accountable for exploiting children in their care for financial gain,” said Attorney General Raúl Torrez. “They abused a system designed to help vulnerable populations by stealing Social Security numbers and falsifying psychological diagnoses. Their actions not only defrauded taxpayers but also created lasting harm for these children, whose medical records may now require significant effort to correct and could impact their future opportunities. We will continue to pursue justice for victims and hold those who prey on vulnerable communities fully accountable.”

Last August, the New Mexico Department of Justice’s (NMDOJ) Medicaid Fraud and Elder Abuse Bureau filed charges against Susanne and Bethanne Kee, who operated Kids in Need of Support Services (KISS), a nonprofit afterschool program in Silver City, for fraudulently billing for services that were never rendered while illegally using both adult and children’s social security numbers, falsely representing psychological disorders and more.

As part of the Medicaid fraud scheme, the NMDOJ’s investigation uncovered that the pair not only submitted fraudulent claims for services to children that were never rendered, but also:

• Illegally utilized patient social security numbers of children and adults without knowledge or consent of victims or their parent/guardians
• Illegally utilized Medicaid identifier numbers of children and adults without knowledge or consent of victims or their parent/guardians
• Documented false psychological disorders to justify the ‘services’ – disorders that create fictitious health records that will follow and have a potentially-negative impact on the victims throughout their lives According to the agreements, Susanne Kee will serve an initial sentence of up to four years and six months, while Bethanne Kee will be required to serve up to five years at her initial sentencing. The $6.6 million restitution stipulated in the agreement includes $1.6 million in criminal restitution and $4.9 million in civil penalties.

Susanne Kee, P&D-signed

Bethanne Kee, P&D- signed

This case was investigated by the NMDOJ’s Medicaid Fraud and Elder Abuse Bureau (MFEAB). The New Mexico MFEAB receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $3,623,761.71 for federal fiscal year 2026. The remaining 25 percent, totaling $1,207,920.57 for fiscal year 2026, is funded by the State of New Mexico.

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