Lexington, Kentucky, November 27, 2025
Delores Jordan, owner of Serenity Keepers in Lexington, has pleaded guilty to a $20 million Medicaid fraud scheme involving illegal drug tests. She faces five years in prison and must pay at least $2.9 million in restitution. The fraud involved improper billing for unnecessary services, highlighting ongoing issues of healthcare fraud in sober living facilities.
Lexington, Kentucky – Sober Living Home Owner Pleads Guilty to $20 Million Medicaid Fraud Scheme
Delores Jordan, owner of Serenity Keepers, a sober living home in Lexington, Kentucky, has pleaded guilty to a $20 million Medicaid fraud scheme involving illegal urine tests. She faces up to five years in prison and has agreed to pay restitution of at least $2.9 million to Kentucky Medicaid and the Centers for Medicare & Medicaid Services.
Details of the Fraud Scheme
Between August 2019 and March 2022, Jordan orchestrated a scheme where Serenity Keepers referred clients’ urine drug tests to various laboratories in exchange for kickbacks. These tests were not medically necessary and were not ordered by medical providers, which are requirements for Medicare and Medicaid reimbursement. The fraudulent billing resulted in approximately $26.7 million in claims to Medicare and Kentucky Medicaid. Additionally, Jordan, along with co-conspirators, fraudulently billed Kentucky Medicaid for peer support services that were not provided as claimed.
Legal Proceedings and Sentencing
Jordan has agreed to plead guilty to conspiracy to violate the Anti-Kickback Statute, a felony punishable by up to five years in prison, a $250,000 fine, and up to three years of supervised release. Sentencing is scheduled for December 8, 2025, in Lexington. Co-defendants Deshawn “Dashawn” Dawkins, Ernest Williams, and Jerome Davis remain charged and are presumed innocent until proven guilty in a court of law.
Background on Serenity Keepers
Serenity Keepers, founded by Jordan in August 2019, is a sober living home in Lexington, Kentucky. The facility claimed to provide mental health, substance abuse treatment, and housing for individuals enrolled in its program. The fraudulent activities took place over a period of approximately two and a half years, leading to significant financial losses for Medicare and Kentucky Medicaid.
Broader Implications
This case highlights ongoing issues of healthcare fraud within sober living facilities. Similar cases have been reported in Kentucky, including a $300,000 settlement over false claims by Recovery Services, LLC, a Louisville-based recovery center, in June 2023. These incidents underscore the need for increased vigilance and enforcement to prevent fraudulent activities in healthcare services.
Frequently Asked Questions (FAQ)
What charges did Delores Jordan plead guilty to?
Delores Jordan pleaded guilty to conspiracy to violate the Anti-Kickback Statute, a felony punishable by up to five years in prison, a $250,000 fine, and up to three years of supervised release.
What is the restitution amount agreed upon?
Delores Jordan has agreed to pay restitution of at least $2.9 million to Kentucky Medicaid and the Centers for Medicare & Medicaid Services.
When is the sentencing scheduled?
Sentencing is scheduled for December 8, 2025, in Lexington, Kentucky.
Who are the co-defendants in this case?
The co-defendants are Deshawn “Dashawn” Dawkins, Ernest Williams, and Jerome Davis. They remain charged and are presumed innocent until proven guilty in a court of law.
What is Serenity Keepers?
Serenity Keepers is a sober living home in Lexington, Kentucky, founded by Delores Jordan in August 2019. The facility claimed to provide mental health, substance abuse treatment, and housing for individuals enrolled in its program.
Have there been similar cases in Kentucky?
Yes, similar cases have been reported in Kentucky, including a $300,000 settlement over false claims by Recovery Services, LLC, a Louisville-based recovery center, in June 2023. These incidents highlight the need for increased vigilance and enforcement to prevent fraudulent activities in healthcare services.
Key Features of the Case
| Feature | Details |
|---|---|
| Defendant | Delores Jordan, owner of Serenity Keepers |
| Charges | Conspiracy to violate the Anti-Kickback Statute |
| Restitution Amount | At least $2.9 million to Kentucky Medicaid and the Centers for Medicare & Medicaid Services |
| Sentencing Date | December 8, 2025, in Lexington, Kentucky |
| Co-Defendants | Deshawn “Dashawn” Dawkins, Ernest Williams, and Jerome Davis |
| Facility Involved | Serenity Keepers, a sober living home in Lexington, Kentucky |
| Fraudulent Billing Amount | Approximately $26.7 million to Medicare and Kentucky Medicaid |
| Additional Fraudulent Billing | Fraudulent billing for peer support services not provided as claimed |
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