AG Torrez Recovers $1.5M from Ex-NMPD Officer in Fraud Scheme

AG: New Mexico Press Releases

Filed October 16th, 2025

Detected March 21st, 2026

Summary

New Mexico Attorney General Raúl Torrez announced the recovery of over $1.5 million from former State Police Officer Morgan Ortiz and Dr. Keith Levitt. The defendants pleaded guilty to felony charges including Medicaid Fraud, Identity Theft, and Practicing Medicine Without a License related to a substance abuse recovery scheme.

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What changed

New Mexico Attorney General Raúl Torrez has secured a plea agreement with former State Police Officer Morgan Ortiz, who pleaded guilty to Medicaid Fraud, Conspiracy to Commit Identity Theft, and Practicing Medicine Without a License. His co-defendant, Dr. Keith Levitt, entered a similar agreement. The pair operated a fraudulent substance abuse recovery program that billed Medicaid for hundreds of thousands of dollars. They have been ordered to pay over $1.5 million in restitution to the State of New Mexico and for civil remedies.

This enforcement action highlights the risks associated with fraudulent billing practices within healthcare recovery programs. Regulated entities, particularly those billing Medicaid, should review their internal controls and billing practices to ensure compliance with anti-fraud statutes. Failure to do so could result in significant financial penalties, restitution orders, and potential criminal prosecution, as demonstrated by this case where restitution exceeds $1.5 million and prison sentences of up to three years are possible.

What to do next

Review internal controls for healthcare billing practices, particularly those involving Medicaid.
Ensure compliance with anti-fraud statutes related to healthcare services.
Assess potential exposure to restitution and penalties for fraudulent billing.

Penalties

Ordered to pay more than $1.5 million in restitution ($411,528.78 to the State of New Mexico and $1.1 million in civil remedies). Defendants face up to three years in prison, with potential for up to 21 years if probation is violated.

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Attorney General Raúl Torrez Recovers More Than $1.5 Million from Former New Mexico State Police Officer Charged in Substance Abuse Recovery Scheme

October 16, 2025

Albuquerque, NM – This morning, a Second Judicial District Court judge accepted a plea agreement secured by Attorney General Raúl Torrez against former New Mexico State Police Officer Morgan Ortiz. Ortiz—who was previously charged with DWI—pleaded guilty alongside his co-defendant, Dr. Keith Levitt, to multiple felony charges, including two counts of Medicaid Fraud over $20,000, Conspiracy to Commit Identity Theft, and Practicing Medicine Without a License. Both defendants face up to three years in prison and have been ordered to pay more than $1.5 million in restitution. Levitt recently entered a nearly identical agreement.

The pair were indicted by a Grand Jury in November of 2024 after an investigation by the New Mexico Department of Justice (NMDOJ) revealed their involvement in an extensive substance abuse recovery program scheme involving Medicaid Fraud, Identity Theft, Document Falsification and Unauthorized Medical Practice. The defendants were operating a now-shuttered substance abuse recovery program that billed the Medicaid program hundreds of thousands of dollars in fraudulent claims.

“The defendants in this case exploited the vulnerable by preying on individuals struggling with substance abuse disorders, all for their own financial gain.” said Attorney General Raúl Torrez. “This agreement ensures justice for the victims who were taken advantage of while ensuring that the defendants return the massive sums of money that they obtained through illegal and predatory practices. Let this be a lesson that anyone attempting to take advantage of our healthcare system will be investigated and prosecuted by my office.”

The plea agreement for Ortiz includes the following:

Defendant pleads GUILTY to two counts of Medicaid Fraud over $20,000
Defendant pleads GUILTY to Conspiracy to Commit Theft of Identity
Defendant pleads GUILTY to Practicing Medicine Without a License
Defendant shall be sentenced to no more than 3 years of incarceration at initial sentencing
Defendant may serve up to 21 years of incarceration if defendant violates probation The agreement also stipulates that Ortiz and Levitt are jointly and severally liable for restitution in the amount of $411,528.78 to the State of New Mexico and $1.1 million in satisfaction of all civil remedies available to the State of New Mexico under NMSA §30-44-8, amounting to a total of $1,511,528.78.

Plea Agreement

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 $3,451,202 for federal fiscal year 2025. The remaining 25 percent, totaling $1,150,401 for fiscal year 2025, is funded by the State of New Mexico.