Timothy Mark Anderson: Iowa Medicaid Fraud Nets Prison, $184K Restitution

• Iowa attorney Timothy Mark Anderson was sentenced to six months in federal prison for Medicaid fraud.
• He pleaded guilty in October 2025 to making a false statement relating to a healthcare matter.
• Anderson orchestrated a scheme involving phony sales of luxury cars, including a Rolls-Royce Phantom V, to elderly clients.
• The scheme aimed to make clients appear eligible for Iowa Medicaid benefits by fabricating asset divestment.
• He was also fined $25,000 and ordered to pay $184,274.36 in restitution to Iowa Medicaid.

This outcome reinforces the critical need for legal practitioners and compliance officers to ensure their practices strictly adhere to anti-fraud statutes, safeguarding both their clients and their own professional standing.

Timothy Mark Anderson, a 67-year-old attorney from Garner, Iowa, has received a federal prison sentence for his involvement in a scheme to defraud the Iowa Medicaid program. In September 2026, Anderson was sentenced to six months in federal prison by U.S. District Court Judge Leonard T. Strand of the Northern District of Iowa. This sentencing followed his guilty plea in October 2025 to a charge of making a false statement relating to a healthcare matter.

Beyond the incarceration, the court imposed significant financial penalties on Anderson. He was ordered to pay a $25,000 fine and make restitution totaling $184,274.36 to Iowa Medicaid. The case highlights the severe consequences for legal professionals who exploit government benefit programs through deceptive practices.

The core of the scheme involved Anderson leveraging his personal luxury car collection, specifically a Rolls-Royce Phantom V, to manipulate Medicaid eligibility for his elderly clients. Prosecutors detailed how Anderson orchestrated a series of phony transactions designed to make it appear as though clients had divested assets, thereby qualifying them for essential healthcare benefits they might not otherwise have received.

The intricate plan devised by Timothy Mark Anderson involved guiding elderly clients and their heirs through a series of sham transactions. Anderson would instruct his elderly clients to "purchase" vehicles from his personal collection, which included a Rolls-Royce Phantom V. Following this initial "sale," the clients would then "gift" these same vehicles to their heirs. The final step in the fraudulent cycle saw the heirs "selling" the vehicles back to Anderson, often at a reduced price, effectively returning the assets to him while creating a paper trail of divestment for the clients.

One specific instance cited by prosecutors involved an elderly couple seeking to qualify for Medicaid. This couple "bought" a 1961 Rolls-Royce Phantom V from Anderson for $186,000. Subsequent to this transaction, Anderson himself prepared and submitted documentation to Iowa Medicaid, asserting the husband's eligibility for benefits based on the fabricated asset transfer. During the Timothy Mark Anderson sentencing, Judge Strand explicitly characterized these luxury vehicle sales to elderly Medicaid applicants as "obviously fraudulent and illegal," underscoring the deceptive nature of the entire operation.

The conviction of Timothy Mark Anderson for making a false statement relating to a healthcare matter, as reported in a September 28 press release from the U.S. attorney’s office for the Northern District of Iowa, serves as a stark reminder of the legal and ethical obligations of attorneys. This Iowa attorney Medicaid fraud involving a Rolls-Royce collection underscores that professionals who advise on elder law and estate planning must operate with the utmost integrity, particularly when dealing with government benefit programs.

The case of Timothy Mark Anderson Iowa Medicaid fraud demonstrates the severe criminal and financial penalties awaiting those who devise or participate in schemes to defraud programs like Medicaid. The U.S. District Court Northern District Iowa's ruling emphasizes that manipulating asset transfers to create false Medicaid eligibility, especially through an elderly client Medicaid eligibility scheme, carries significant legal exposure. This outcome reinforces the critical need for legal practitioners and compliance officers to ensure their practices strictly adhere to anti-fraud statutes, safeguarding both their clients and their own professional standing.

This case underscores the severe criminal and financial penalties for attorneys who devise or participate in schemes to defraud government benefit programs like Medicaid. Lawyers and compliance officers advising on elder law, estate planning, or government benefits must ensure their practices and advice strictly adhere to anti-fraud statutes, particularly concerning asset transfers and eligibility, to avoid similar legal exposure.

Source: Original reporting via the U.S. attorney’s office for the Northern District of Iowa.