Alabama state representative accuses former Corrections healthcare provider of fraud

A state representative Thursday accused the former healthcare provider of Alabama prisons of fraud and sharply criticized the Alabama Department of Corrections’ relationship with a Montgomery-based law firm.

Rep. Chris England, D-Tuscaloosa, said the events leading up to Tennessee-based company YesCare’s bankruptcy filing in May, after the state abruptly canceled a $1 billion contract in April with the firm, appeared to be fraud.

“Sounds like to me that you were deceived. The state of Alabama was deceived,” England said to Mary-Coleman Roberts, general counsel for the Alabama Department of Corrections. “Not only did they defraud the state, they defrauded each and every employee that they did not pay, so they should be prosecuted.”

Messages seeking comment from YesCare were left Thursday afternoon. According to Alabama law, aggravated theft by deception, when a person or entity “commits a theft of public funds or revenue of any state, county, or municipal government agency or department,” of more than $100,000 is a felony, punishable by up to 30 years in prison or up to $60,000 per violation.

Corrections canceled the contract for what it called YesCare’s failure to “adequately fulfill its contractual duties.”

England raised questions about the contract in 2023 over the presence of Bill Lunsford, an attorney who has received millions of dollars in legal contracts from Corrections, on a YesCare advisory board. Roberts said at the time Lunsford was on the board for the first round of contract awards but not a subsequent one.

Roberts said the DOC is evaluating all options with YesCare, but did not want to comment publicly on the department’s legal strategy.

“I don’t disagree with you,” she said to England. “Conversations have been had, though there has not been a formal request yet from our office because we felt like we are still in the investigative stages of what we need to do next.”

The company told employees early last month that it could not pay wages for hours worked before the company filed for bankruptcy in May. 

“They did make payroll on April 24. They received the payment earlier that week,” Roberts said. “They did not make the May 8 payroll. When I asked David Goldwasser, who was their chief restructuring officer, what our money was used for, he said other things.”

The Department of Corrections on Thursday requested a $200,000 contract with Butler Snow, LLP attorney Jack Crawford to help the department with the contract termination, which is connected to a bankruptcy case in the U.S. Bankruptcy Court for the Middle District of Florida. 

“I am not a bankruptcy expert, nor am I a bond expert, nor do we have anyone on staff at the DOC who are experts in this matter,” said Andi Spears, an attorney for the DOC. “We are pursuing what legal avenues that may be available to the department under the breach of contract of YesCare to recoup any money that the department may have for that breach of contract.” 

England was also critical of the contract with Butler Snow, which employs Lunsford. Lunsford and two other Butler Snow attorneys were removed from a lawsuit against the department in 2025 after an attorney used an artificial intelligence program in a filing, leading to fabricated citations. 

“Lord have mercy, what do we do to vet these folks, and how do we choose lawyers if the firm we just hired got caught using AI on other cases with prisoner litigation?” England said.

The committee held the law firm contract, which it can do for up to 45 days. 

England said he does not know how many employees went without a paycheck from YesCare, but that a new healthcare provider NaphCare hired many of the YesCare employees when it was awarded an emergency contract in May. 

“At the end of the day, the state of Alabama is just as much responsible for even entering into business with a company like YesCare,” England said after the meeting. “Ultimately, YesCare is responsible, because as the evidence has shown, they’re nothing short of a bunch of criminals.”

NaphCare has faced controversies and has been banned from operating in other states, but has not been reported to fail to meet a payroll.

Roberts said former YesCare employees have not received the last missed paycheck yet, although they expected to by June. England said after the meeting that in order for them to get paid, they will have to join the bankruptcy lawsuit. But, he said employees will be last in line to receive compensation.

“Can you imagine somebody who’s owed a paycheck versus a big major corporation that’s owed hundreds of thousands, or maybe millions of dollars? The likelihood that if they ever recover from this company in bankruptcy is – just like YesCare designed it – very little, because they’re trying to get out as much of their financial responsibilities as possible,” England said.