On Aug. 4, an Alaska grand jury indicted the owners of three assisted living homes that offer residential care and support services in the Anchorage area.
Kyle Bates, Molly Bates and Peyton Love were indicted for multiple counts of scheme to defraud, theft in the first degree, medical assistance fraud and a single count of falsifying business records. The Bates have also been charged with criminal Impersonation in the second degree.
In total, Kyle and Molly Bates and their co-defendants are alleged to have fraudulently billed $14,694,800.47 to the Alaska Medicaid Program between July 2019 and Nov. 2025.
According to the Alaska Dept. of Law, during this time, the Bates owned two group homes (Heritage Assisted Living Home LLC and Heritage Home LLC) which they ran with the assistance of Peyton Love. In 2024, Kyle and Molly created a new LLC, Alaska Life Group Home.
A joint investigation by the FBI and the Medicaid Fraud Control Unit found that many of the services billed by Heritage Assisted Living Home and Heritage Home were allegedly not provided, not adequately staffed, or not adequately documented.
Subsequent investigation, with the assistance of the Alaska Department of Health, Division of Senior and Disability Services, also discovered that the entities were allegedly operating without an approved program administrator.
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Investigators discovered that after the former program administrator quit and moved out of state in 2019, Molly and Kyle Bates allegedly impersonated her and misrepresented her employment to the Alaska Department of Health. Operations allegedly continued without an approved program administrator until Nov. 25, 2025. During this time, Kyle and Molly Bates allegedly forged signatures, took training courses in the former administrator’s name, submitted documents claiming the former administrator was still an employee and lied on their certification applications to Medicaid.
Nationally, Medicaid fraud continues to be a widespread problem. According to the most recent national statistics from HHS Office of Inspector General, fiscal year 2025 saw nearly $2 billion in combined criminal and civil recoveries, 1,185 convictions (856 for fraud; 329 for patient abuse or neglect), 674 civil settlements and judgments, 900 individuals/entities excluded from federal health care programs as a result of convictions, $1.3 billion in criminal recoveries and $706 million in civil recoveries.
Citizens with information about suspected medical assistance fraud, patient abuse or neglect are encouraged to use the Alaska Medicaid Fraud Control Unit online complaint form or to contact the unit at (907) 269-6279.
