Michigan – Michigan Attorney General Dana Nessel has announced felony charges against Tamela Peterson, the former owner and chief executive officer of Oxford Recovery Center, accusing her of submitting false health care claims over an extended period.
Peterson, 59, of Brighton, was arraigned in Livingston County on nine counts of health care fraud involving false claims, each carrying a potential penalty of up to four years in prison and fines of up to $50,000.
According to the Attorney General’s office, Peterson led both the Oxford Recovery Center in Brighton and the Oxford Center in Troy, facilities that provided treatment for addiction and mental health conditions. The centers also operated Applied Behavioral Analysis programs that served a significant number of children diagnosed with autism.
Investigators allege that during her time as owner and CEO, Peterson knowingly benefited from improper billing practices, including claims submitted for services that were never provided.
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The investigation began in September 2022 after complaints were filed by former patients and providers. Those complaints prompted a review by the Attorney General’s Health Care Fraud Division, which concluded that Peterson was aware of the alleged misconduct and directly profited from it. Prosecutors say the fraudulent claims placed financial strain not only on public programs but also on the broader health care system.
Attorney General Nessel said cases like this extend beyond individual wrongdoing, noting that false billing increases health care and insurance costs statewide and erodes trust between patients and providers.
“Filing false claims impacts not only patients and providers, but also contributes to increased costs of healthcare and medical insurance for everybody,” said Nessel. “Health care fraud undermines the trust between patients and providers and patients’ notions of confidentiality and care. My office will continue to hold accountable those who take advantage of their practice for their own financial benefit.”
Following her arraignment in the 53rd District Court in Howell, Peterson was released on a $10,000 personal recognizance bond. Court records show she is scheduled to return on January 27 for a probable cause conference, with a preliminary examination set for February 3.
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The case is being prosecuted by the Health Care Fraud Division, which serves as Michigan’s Medicaid Fraud Control Unit. The division is primarily funded through a federal grant from the U.S. Department of Health and Human Services, with additional support from the State of Michigan.