St. Thomas, U.S. Virgin Islands — V.I. Attorney General Gordon C. Rhea announced today that the Virgin Islands Department of Justice (DOJ), through its Medicaid Fraud Control Unit (MFCU), has filed a civil action against RTS Services Unlimited 11, LLC (“RTS”), Melinda Richards, Ashley Doway, and Duane Robinson alleging violations of the Virgin Islands False Claims Act and related laws arising from claims submitted to the Virgin Islands Medicaid Program.
The investigation originated from a referral received in 2024 after the DOJ Office of the Solicitor General received information alleging that RTS and associated individuals were billing the Virgin Islands Medicaid Program for psychotherapy, hypnotherapy, counseling, and other behavioral health services without the licenses required under Virgin Islands law. The matter was subsequently referred to the MFCU for investigation.
According to the complaint, the MFCU investigation included a review of Medicaid claims data, provider enrollment records, licensing records, financial records, witness statements, and other evidence obtained during the course of the investigation.
The complaint alleges that between January 2020 and January 2026, RTS submitted claims to the Virgin Islands Medicaid Program totaling approximately $3,912,551.57 and received Medicaid payments totaling approximately $408,410.90.
According to the complaint, RTS and Melinda Richards held licenses authorizing testing, evaluation, and consultation services. The complaint alleges that neither RTS nor Richards possessed the licenses required under Virgin Islands law to independently provide, supervise, or bill Medicaid for psychotherapy, hypnotherapy, counseling, and other therapeutic behavioral health services for which reimbursement was sought.
The complaint further alleges that Melinda Richards, Ashley Doway, and Duane Robinson 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. It is further alleged that claims for those services were submitted to Medicaid and paid for with public funds.
Because the defendants allegedly lacked the licenses required to provide, supervise, and bill for the psychotherapy, hypnotherapy, counseling, and related behavioral health services at issue, 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.
Attorney General Gordon Rhea stated:
“This action demonstrates the critical role that referrals play in identifying potential fraud within the Medicaid program. When individuals come forward with credible information, the Department of Justice—through our Medicaid Fraud Control Unit—acts decisively to investigate and hold bad actors accountable.”
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.
“Vulnerable populations, such as children who require behavioral health services, deserve to be treated by qualified clinicians,” said AG Rhea. “MFCU is committed to protecting both Medicaid beneficiaries and taxpayer dollars. The allegations in this complaint involve the submission of claims for services that, according to the MFCU’s investigation, were provided by individuals who lacked the licenses required under Virgin Islands law and for services not eligible for reimbursement. We will continue to pursue fraud, waste, and abuse wherever it occurs and ensure accountability for those who improperly seek payment from publicly funded healthcare programs.”
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.
MFCU receives 100 percent of its funding from the U.S. Department of Health and Human Services, Office of Inspector General. (HHA-OIG)
MFCU thanks its partners, HHS-OIG San Juan Office, and the DOJ Civil Division, for their assistance in this matter.
Anyone with information regarding suspected Medicaid fraud, waste, abuse, patient neglect, or patient exploitation is encouraged to contact the Virgin Islands Medicaid Fraud Control Unit.
Phone: (340) 774-5666 or (888)-404-MFCU (6328)
Email: VIMFCU@doj.vi.gov
FOR IMMEDIATE RELEASE
June 23, 2026
Sandra Goomansingh
Media Relations Director
(340) 774-5666 ext. 10105
Email: sandra.goomansingh@doj.vi.gov