Former CEO of Oxford Recovery Center, Tamela Peterson, has been charged with nine counts of health care fraud, Michigan Attorney General Dana Nessel's office announced. At 59 years old, Peterson faced arraignment in Howell before Magistrate Jerry Sherwood, where each of the felony counts levied against her could lead to a four-year maximum prison sentence or up to a $50,000 fine. The charges stem from billing for services that were never rendered, according to official statements released by Nessel's office.
According to the Michigan government, Peterson, who managed The Oxford Recovery Center in Brighton and The Oxford Center in Troy, allegedly exploited fraudulent claim practices. The facilities treated a variety of patients, including children with autism receiving Applied Behavioral Analysis therapies. The allegations emerged after complaints from former providers and patients, prompting an investigation by the Attorney General's office in September 2022. "Filing false claims impacts not only patients and providers, but also drives up healthcare and insurance costs for everyone," Attorney General Nessel said.
Peterson has been released on a $10,000 personal recognizance bond. She is slated to return to court for a Probable Cause Conference on the morning of January 27 at the 53rd District Court before Judge Shauna Murphy. Her preliminary exam is on the books for February 3rd.
The Attorney General's Health Care Fraud Division, a Medicaid Fraud Control Unit federally certified and predominantly funded by the U.S. Department of Health and Human Services, oversaw the investigation into these alleged health care fraud incidents. For fiscal year 2026, the division's budget is just over $5.5 million with a 75% federal grant from the DHHS, while the State of Michigan covers the remaining 25%, or approximately $1.8 million.
