South Dakota Federal Prosecutors Seek $4.6M in Medicare Fraud Case Against Texas Company

Northeast Radio SD News – South Dakota - The U.S. Attorney’s Office for the District of South Dakota has filed a federal civil complaint seeking $4,591,003 from a Texas corporation and its North Carolina owner for an alleged scheme to defraud Medicare.

The complaint, filed in federal court, names Michael Bingham, 72, of Laurel Springs, North Carolina, and his Dallas-based company, NeuroSolutions 100, LLC.

Prosecutors allege the defendants violated the False Claims Act by improperly billing Medicare for the surgical implantation of electro-neurostimulators. According to court documents, the devices were actually temporary, non-surgical electro-acupuncture tools applied behind patients’ ears using adhesives or acupuncture-style needles.

The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) alongside the Centers for Medicare & Medicaid Services (CMS). Assistant U.S. Attorney Anne Weyer is litigating the matter.

“We’ve been directed by the Attorney General to do everything possible to eliminate fraud against the government and seek to recover funds stolen from taxpayers,” said U.S. Attorney Ron Parsons.

Part of Record National Takedown

The South Dakota filing is part of the Department of Justice’s 2026 National Health Care Fraud Takedown, described as the largest coordinated enforcement action in nation history.

·         Nationwide Scope: The nationwide operation resulted in civil and criminal charges against 455 defendants—including 90 licensed medical professionals—across 56 federal districts, accounting for over $6.5 billion in alleged false claims.

·         Administrative Enforcement: As part of the broader sweep, CMS suspended 1,079 providers and revoked billing privileges for 1,403 others, while the DEA initiated 928 cases to revoke controlled substance authority.

A civil complaint contains allegations only. All defendants are presumed innocent unless proven liable in a court of law.

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