Silver City Nonprofit Operators Plead Guilty to $6M Medicaid Fraud

Susanne and Bethanne Kee admit to falsifying claims, stealing identities, and defrauding state's Medicaid program.

Apr. 15, 2026 at 1:00am

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An extreme close-up photograph of a crumpled medical insurance card or Medicaid ID number, lit by a harsh, direct camera flash against a pitch-black background, conceptually representing the harsh realities of Medicaid fraud.A harsh, gritty close-up of evidence from a Medicaid fraud case exposes the real-world consequences of exploiting vulnerable populations.Silver City Today

A mother and daughter who operated a nonprofit after-school program in Silver City, New Mexico pleaded guilty to charges in a Medicaid fraud case filed by the state attorney general. Susanne Kee and Bethanne Kee admitted to submitting fraudulent Medicaid claims for services that were never rendered, using Social Security and Medicaid numbers of children and adults without their consent, and documenting false psychological disorders to justify the fraudulent services. They agreed to pay over $6 million in restitution and serve prison time.

Why it matters

This case highlights the serious consequences of Medicaid fraud, which not only defrauds taxpayers but also creates lasting harm for vulnerable children whose medical records may now require significant effort to correct. It underscores the importance of rigorous oversight and accountability measures to protect government healthcare programs from exploitation.

The details

According to the plea agreements, the Kees operated a nonprofit called Kids in Need of Support Services (KISS) and submitted fraudulent Medicaid claims for psychotherapy services that were never provided. Investigators found many of the claims included services for minors as young as under 1 year old, but 11 families who were KISS clients reported that neither they nor their children had received any psychotherapy from the organization.

  • The Kees were initially charged separately in August 2023 by the New Mexico Department of Justice's Medicaid Fraud and Elder Abuse Bureau.
  • Their cases were combined in February 2026.
  • The Kees pleaded guilty on Monday, April 14, 2026.

The players

Susanne Kee

The mother who, along with her daughter, operated the nonprofit KISS and pleaded guilty to Medicaid fraud charges.

Bethanne Kee

The daughter who, along with her mother, operated the nonprofit KISS and pleaded guilty to Medicaid fraud charges.

Raúl Torrez

The New Mexico Attorney General who filed the Medicaid fraud case against the Kees.

Tom Stewart

The Grant County District Judge who accepted the Kees' plea agreements.

William Perkins

The attorney representing the Kees.

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What they’re saying

“This agreement ensures that these individuals will be held accountable for exploiting children in their care for financial gain. They abused a system designed to help vulnerable populations by stealing Social Security numbers and falsifying psychological diagnoses. Their actions not only defrauded taxpayers, but also created lasting harm for these children, whose medical records may now require significant effort to correct and could impact their future opportunities. We will continue to pursue justice for victims and hold those who prey on vulnerable communities fully accountable.”

— Raúl Torrez, New Mexico Attorney General

What’s next

A sentencing date has not yet been set for Susanne Kee and Bethanne Kee, but they face up to 4.5 years and 5 years in prison respectively under the plea agreements.

The takeaway

This case highlights the serious consequences of Medicaid fraud, which not only defrauds taxpayers but also creates lasting harm for vulnerable children whose medical records may now require significant effort to correct. It underscores the importance of rigorous oversight and accountability measures to protect government healthcare programs from exploitation.