Federal prosecutors have charged a Minnesota couple with orchestrating a $15 million healthcare fraud scheme involving overbilling and false claims for neurofeedback and other behavioral health services across multiple clinic locations.
Gabriel Adam Alexander Luthor and Elizabeth Christine Brown were charged on March 6, 2025, in a newly unsealed federal indictment filed in the U.S. District Court for the District of Minnesota. The couple allegedly used shell companies and related entities to perpetrate fraud through questionable billing practices, causing over $15 million in improper payments from government and commercial payors including Medicare, Medicaid, and private insurers. The scheme reportedly operated over several years and involved a network of behavioral health clinics offering neurofeedback therapy, a treatment that uses real-time monitoring of brainwave activity to help improve emotional regulation and stress resilience.
The indictment details multiple alleged fraudulent practices:
"Defrauding critical healthcare programs like Medicaid and Medicare burden systems designed to serve patients and puts them at risk," said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis in a press release. "The FBI and our partners will not tolerate those who abuse the healthcare system for personal gain and will pursue justice on behalf of taxpayers and patients."
Neurofeedback is a therapeutic intervention marketed as a non-invasive alternative to medication for treating anxiety, ADHD, depression, and related conditions. While the FDA has cleared some neurofeedback devices, its clinical efficacy remains debated in the medical community, and reimbursement policies vary widely across insurance providers. The therapy has been gaining popularity in both clinical and wellness settings, making it an attractive target for potential billing fraud as providers navigate complex reimbursement landscapes.
This $15 million neurofeedback scheme highlights specific vulnerabilities in behavioral health billing systems. Neurofeedback therapy exists in a gray area for insurers—while gaining popularity for treating conditions like ADHD and anxiety, its reimbursement policies vary widely, creating opportunities for fraud. The case shows how the intentional misuse of CPT codes (particularly substituting biofeedback codes for neurofeedback services) can lead to millions in inappropriate payments. It also demonstrates how the DOJ is now specifically targeting emerging therapeutic modalities where billing standards remain in flux. For behavioral health practitioners offering neurofeedback, this case is s warning about the consequences of improper billing practices, even when receiving payor denials and warnings.
Healthcare providers offering emerging treatments like neurofeedback, TMS, or ketamine therapy should ensure compliance programs are in place. Best practices include maintaining proper clinical oversight and licensure, implementing regular third-party billing audits, and creating a strong culture of compliance with enforced internal processes. Investors in behavioral health businesses should conduct thorough due diligence on billing practices, especially for novel treatments with variable reimbursement policies.