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Billings Counselor Sentenced to Prison for Medicaid Fraud Scheme

November 3, 2026

A Billings mental health counselor has been sentenced to three years in the Montana Women’s Prison and ordered to repay more than $603,000 after being convicted of submitting fraudulent Medicaid claims for counseling sessions that never occurred.

Staci West, a licensed professional counselor, was sentenced Oct. 22 after an investigation by the Montana Department of Justice’s Medicaid Fraud Control Unit uncovered fraudulent billings spanning nearly four years.

According to Attorney General Austin Knudsen’s office, West submitted Medicaid claims for services she never provided, including appointments with patients she did not treat and counseling sessions that never took place.

The billing occurred between January 2022 and September 2025. West was convicted of Medicaid fraud and making a false claim to a public agency.

The court ordered her to pay $603,719.66 in restitution to the state. In addition to the three-year prison term, West received a 10-year suspended sentence to follow her incarceration. She is prohibited from billing federal health insurance programs for the duration of her sentence.

Montana Medicaid provides health coverage to eligible residents and reimburses participating providers for covered services, including counseling and behavioral health treatment. Fraudulent billing occurs when providers knowingly submit claims for services not delivered or misrepresent services to obtain improper payment.

The investigation was conducted by Medicaid Fraud Control Unit Agent Jared Piilola with assistance from Auditor Dennis Torrez. Assistant Attorney General Alexandra van Belle prosecuted the case.

The Medicaid Fraud Control Unit operates within the Montana Department of Justice’s Division of Criminal Investigation and investigates fraud involving the state’s Medicaid program as well as abuse, neglect and exploitation of patients in Medicaid-funded facilities.

For federal fiscal year 2026, the unit is receiving $939,984 in federal funding, representing 75% of its budget. The remaining 25%, totaling $313,325, comes from Montana, for combined funding of approximately $1.25 million.

The restitution order requires West to repay the state for the fraudulent billings, although the announcement did not specify a repayment schedule.

By: Montana Newsroom wire

Filed Under: News

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