Counseling Center Owner Brenda Copeland and Five Others Indicted in Alleged $19 Million Fake Therapy Billing Scheme

Published Oct. 22, 2026. Case status is current as of that date.

Federal prosecutors in Chicago say a suburban counseling center billed a private insurer for years of therapy sessions that never took place, and paid some of the "patients" a share of the money for lending their insurance information.

On Oct. 21, 2026, the U.S. Attorney's Office for the Northern District of Illinois announced that Brenda Copeland, owner of All Types Counseling Services, and five others had been indicted on federal health care fraud charges [1]. The indictment was returned on Monday, Oct. 19.

Important: All six defendants have been charged, not convicted. "The public is reminded that an indictment is not evidence of guilt," the U.S. Attorney's Office said. "The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt" [1].

Status: Indicted Oct. 19, 2026. Arraignments had not been scheduled as of the Oct. 21 announcement (status pending).

Who is charged

According to the U.S. Attorney's Office [1], the indictment charges each of the following with health care fraud and conspiracy to commit health care fraud:

• Brenda Copeland, 64, of Country Club Hills, Ill., who operated All Types Counseling Services
• Samuel Carlson, 69, of Country Club Hills, Ill., described as the company's office manager
• Herbert "Randy" Foster, 59, of Flossmoor, Ill.
• Joseph Iraci, 51, of New Lenox, Ill.
• Anthony Gessert, 42, of Oak Lawn, Ill.
• Henry Saldarriaga-Ochoa, 37, of Berwyn, Ill.

The release identifies four of the defendants as "purported patients" but does not say which four [1]. Health care fraud and conspiracy to commit health care fraud are each punishable by up to 10 years in federal prison.

How the scheme allegedly worked

All Types Counseling Services had offices in Chicago's southwest suburbs and "purportedly provided counseling services for conditions such as depression and addiction," according to prosecutors [1]. The indictment alleges that from 2010 to 2025:

• Insurance information was handed over. The purported patients allegedly gave their health insurance information to Copeland and Carlson.
• Claims were filed for sessions that didn't happen. Copeland and Carlson allegedly used that information to submit false claims to Blue Cross Blue Shield of Illinois "for nonexistent psychotherapy services."
• The "patients" got a cut. Copeland and Carlson allegedly gave the purported patients a portion of the payments BCBS issued to All Types.
• Recruits brought more recruits. The purported patients also allegedly "recruited others to falsely pose as patients in exchange for receiving similar payments."

In all, prosecutors say, the defendants submitted or caused the submission of $19 million in fraudulent claims, which led BCBS to pay more than $4.8 million to All Types [1].

The U.S. Attorney announced the indictment together with the FBI's Chicago Field Office, the U.S. Department of Labor's Office of Inspector General, and the Labor Department's Employee Benefits Security Administration, Chicago Regional Office. Assistant U.S. Attorney Kristin Pinkston is prosecuting [1].

Why it matters if you have health insurance

The release does not identify the insurance plans involved beyond Blue Cross Blue Shield of Illinois. In general, though, fake claims filed under your name can follow you: they can show up in your insurance history as treatment you never received, use up benefit limits and, in mental health and addiction cases, leave a diagnosis in your records that isn't true. Schemes like the one alleged here can also pull people in with a simple offer of cash for "letting" a provider bill their insurance.

Accepting money to let a provider bill for care you didn't get is not a harmless side deal. In this case, prosecutors charged people they describe as purported patients alongside the clinic's owner and office manager [1].

Red flags

• Anyone offering you money to use your health insurance card, or to "sign in" for sessions you don't attend.
• A provider who pays patients, or asks you to recruit friends or family as patients for a fee.
• Explanation of Benefits (EOB) statements listing therapy, counseling or other visits you never had.
• A clinic that asks for your member ID but provides little or no actual care.

What to do if you're targeted

1. Read every EOB your insurer sends, and log in to your member portal to check claims. Flag any visit or service you don't recognize.
2. Call your insurer's fraud line (the number is usually on your card or the insurer's website) if you see claims you didn't authorize.
3. Never sell or lend your insurance information, even to a provider you know.
4. If your employer sponsors your plan, tell your benefits office about suspicious claims as well.
5. Report fraud to the FBI at tips.fbi.gov [2] or the FTC at ReportFraud.ftc.gov [3].

Case status (as of Oct. 22, 2026)

Defendant	Court	Status as of Oct. 22, 2026	Source
Brenda Copeland, 64, Country Club Hills, Ill.	U.S. District Court, N.D. Ill.	Indicted Oct. 19, 2026 (health care fraud; conspiracy); arraignment not yet scheduled; presumed innocent	[1]
Samuel Carlson, 69, Country Club Hills, Ill.	N.D. Ill.	Indicted Oct. 19, 2026; arraignment not yet scheduled; presumed innocent	[1]
Herbert "Randy" Foster, 59, Flossmoor, Ill.	N.D. Ill.	Indicted Oct. 19, 2026; arraignment not yet scheduled; presumed innocent	[1]
Joseph Iraci, 51, New Lenox, Ill.	N.D. Ill.	Indicted Oct. 19, 2026; arraignment not yet scheduled; presumed innocent	[1]
Anthony Gessert, 42, Oak Lawn, Ill.	N.D. Ill.	Indicted Oct. 19, 2026; arraignment not yet scheduled; presumed innocent	[1]
Henry Saldarriaga-Ochoa, 37, Berwyn, Ill.	N.D. Ill.	Indicted Oct. 19, 2026; arraignment not yet scheduled; presumed innocent	[1]

Statuses can change. Those not convicted are presumed innocent.

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Owner of Suburban Chicago Counseling Center and Five Others Indicted for Alleged $19 Million Health Care Fraud Scheme," Oct. 21, 2026. https://www.justice.gov/usao-ndil/pr/owner-suburban-chicago-counseling-center-and-five-others-indicted-alleged-19-million
2. FBI tips portal (accessed Oct. 22, 2026). https://tips.fbi.gov/
3. Federal Trade Commission, ReportFraud.ftc.gov (accessed Oct. 22, 2026). https://reportfraud.ftc.gov/

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