BATON ROUGE, LA (WVUE) - The Louisiana Department of Health and Hospitals is terminating a non-profit from its Medicaid program after the owners were indicted by the federal government.
The indictment accused the owners of Alternatives Living, Rickey Roberson, his wife Ada Craige-Roberson, and her mother Melanie Duplechain, of theft of federal funds and conspiracy to commit theft of federal funds.
The non-profit claimed to provide affordable housing for elderly, the homeless and people suffering from mental disabilities.
Alternatives Living was the subject of a FOX 8 Lee Zurik investigation. In November 2014, FOX 8 uncovered the three defendants spent tens of thousands from the non-profit's bank account on meals, cars and trips.
The federal indictment, which was revealed on June 17, 2016, accused the family of using federal funds to pay for football tickets and a vacation cruise.
The state says the Medicaid provider agreement termination means Alternatives Living will no longer receive Medicaid payments.
"Our priority is the clients who depend on the state of Louisiana for their care and the services that allow them to live independently," Michelle Alletto, deputy secretary of the Department of Health said. "We will work with those individuals, their families and other providers to ensure a seamless transition to a new provider agency."
The department will immediately take steps to transition individuals who received services from Alternatives Living to other providers in the area and ensure their personal safety and medical, social and housing support needs are appropriately met.