An investigation by special agents with the Tennessee Bureau of Investigation’s (TBI) Medicaid Fraud Control Division has led to the indictment and arrest of a former nurse accused of impersonating a licensed professional and illegally obtaining controlled substances.
The investigation began on November 15, 2024, following a tip from the Tennessee Department of Health. Agents discovered that the defendant had surrendered her Registered Nurse license in August 2024 as part of a plea agreement. Despite this, she continued working as a nurse at a nursing home in Franklin until September 10.
During that time, investigators determined that she diverted controlled substances, including opioids, from residents at the facility.
On June 4, 2025, a Williamson County Grand Jury indicted the defendant on one count of Impersonating a Licensed Professional and 19 counts of Fraudulently Obtaining a Controlled Substance.
On September 5, TBI agents, with help from the US Marshals Service Task Force, the Williamson County Sheriff’s Office, and the Smyrna Police Department, arrested the defendant. She was booked into jail on a $40,000 bond.
Compliance Perspective
Issue
Healthcare facilities are responsible for ensuring that individuals in clinical roles are properly licensed, credentialed, and qualified to provide care. When licensure and identity are not consistently verified, unqualified individuals may gain access to patient care settings, posing risks to patients, staff, and the organization. To support patient safety and regulatory compliance, facilities should have clear processes for license verification, train staff to recognize warning signs, and implement measures to prevent drug diversion. Since nurses and other clinical staff often have access to medications, diversion prevention programs are essential. These should include identifying the types of medications most likely to be diverted, recognizing signs of diversion, and identifying symptoms of impairment in staff.
Discussion Points
- Review and strengthen your facility’s policies and procedures for verifying professional licenses, certifications, and managing controlled substances. Ensure license verification is conducted directly with the issuing board or licensing authority, and that supporting documentation—such as verification printouts and name change explanations—is retained in personnel files. Policies should also clearly define staff responsibilities, prohibited behaviors, and procedures for addressing suspected violations. Consider engaging a compliance consultant or third-party expert to evaluate whether your protocols align with current regulations and industry best practices.
- Provide regular, documented training for relevant staff on license verification, identity confirmation, fraud detection, and drug diversion prevention. Staff should be trained to identify red flags, understand reporting procedures, and recognize their responsibilities related to patient safety and confidentiality. Med-Net Academy offers Employee Recordkeeping Requirements and Education and The Importance of Proper Licensure – A Case Study, which provide practical guidance on maintaining compliance with staffing, licensure, and documentation standards. Additionally, MNA provides three training modules under its Substance Use category that support diversion prevention efforts.
- Conduct regular audits of employee licensure and certification records to confirm that all credentials are current, valid, and properly documented. Review medication dispensing logs and waste records for accuracy and to detect any irregularities. Facilities may benefit from working with external consultants or mock survey teams to evaluate documentation practices and improve internal audit processes.
*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*