A New Mexico therapist has been sentenced to five years in prison after pleading guilty in a Medicaid fraud case involving stolen staff and patient identities, fabricated counseling records and $970,108.31 taken from the state’s Medicaid program.
Nancy Marshall owned Equine Assisted Programs of Southern New Mexico in Las Cruces, where therapy incorporated farm animals into treatment. Investigators found claims for counseling sessions that never happened, including services supposedly provided to children while they were actually attending school.
The New Mexico Department of Justice said Marshall also used National Provider Identifier numbers belonging to other therapists for improper billing and fabricated counseling diagnoses and treatment records.
Marshall pleaded guilty to two counts each of Medicaid fraud, falsification of documents and theft of identity. On September 8, a Third Judicial District Court judge sentenced her to five years in prison followed by five years of probation and ordered her to repay $970,108.31 to the state.
Two Former Employees Brought the Case to Investigators
The investigation began after two key employees left Marshall’s practice and approached state authorities with concerns about improper practices they said they had witnessed and the treatment of patients.
Investigators with the New Mexico Department of Justice’s Medicaid Fraud and Elder Abuse Bureau then conducted an extensive review that included cross-referencing hundreds of individual patient records.
The investigation uncovered false Medicaid claims spanning approximately two and a half years. Marshall was originally indicted by a Doña Ana County grand jury in March 2025 on 18 felony counts, including fraud, Medicaid fraud, falsification of documents and identity theft.
Some Children Were in School During Supposed Therapy Sessions
One method investigators uncovered involved billing Medicaid for counseling that never took place. State authorities compared patient records with other information to determine whether the claimed services had actually occurred.
In some cases, Marshall billed Medicaid for treating children at times when investigators determined those children were attending school. The state also said she fabricated counseling diagnoses and records in connection with the fraudulent billing.
The identity theft extended to staff and patients, including children, according to the New Mexico Department of Justice.
Other Therapists’ Provider Numbers Were Used for Billing
Investigators also found that Marshall used National Provider Identifier numbers belonging to other therapists when submitting improper Medicaid claims.
An NPI is the unique identification number used for covered healthcare providers in standard healthcare billing and administrative transactions. By using other therapists’ provider numbers, the fraudulent claims could be submitted under identifiers that did not belong to Marshall.
Marshall ultimately pleaded guilty to two counts of theft of identity along with two counts each of Medicaid fraud and falsification of documents.
Marshall Was Taken Into Custody at Sentencing
Marshall’s plea agreement required restitution of $970,108.31. The New Mexico Department of Justice said she did not arrive at sentencing with the required percentage of that restitution payment.
The judge remanded her into custody immediately and imposed the five-year prison sentence followed by five years of probation. Marshall was also ordered to repay the full $970,108.31 to the state.
Her guilty plea resolved six felony counts. She had originally been indicted on 18 counts in March 2025.
What to Do if Medicaid Is Billed for Therapy You Never Received
The New Mexico Department of Justice Medicaid Fraud Control Unit investigates provider fraud including billing for services that were never rendered and billing for a higher level of service than was actually provided.
Patients and parents who learn that Medicaid was billed for counseling, therapy or another service that never occurred should preserve information that can help establish what actually happened, including appointment records, provider messages and other documents showing where or when care was supposed to have been provided.
Suspected provider fraud can be submitted directly through the New Mexico Department of Justice’s secure complaint system by selecting the Medicaid provider fraud and abuse complaint option. The Medicaid Fraud Control Unit investigates complaints involving providers such as doctors, nurses, care facilities and therapists.
A questionable therapy claim should be reported even when the dollar amount appears small. In Marshall’s case, investigators uncovered the wider billing pattern only after former employees raised concerns and authorities began cross-referencing hundreds of individual patient records.