A Rolls-Royce Phantom V listed on Medicaid paperwork, one that was crashed and unusable, played a central role in a fraud scheme that landed an Iowa lawyer behind bars. On September 28, federal prosecutors revealed that Timothy Mark Anderson, a 67-year-old attorney from Garner, Iowa, received a six-month prison sentence on September 11 after pleading guilty to a single count of making false healthcare statements. The court also imposed a $25,000 fine and ordered him to repay $184,274.36 to Iowa Medicaid.
Between 2017 and 2022, Anderson allegedly convinced elderly clients to buy high-end vehicles, including multiple Rolls-Royces, before applying for Medicaid benefits. The operation involved transferring ownership of these cars to family members, who then resold them back to him at reduced prices. The inconsistencies in the paperwork later exposed the deception.
Under Iowa Medicaid guidelines, applicants can exclude one vehicle from asset calculations if it serves as transportation. However, the legal case never addressed whether a wrecked Rolls-Royce could meet that requirement. In one instance, a couple with over $400,000 in assets, including a 2020 Chevrolet Equinox, sent Anderson an $186,000 payment, which he deposited into his personal account. He then transferred a 1961 Rolls-Royce Phantom V to them, though they never used it. The car had been in a crash just two days before the transfer, rendering it undrivable.
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Despite the vehicle’s condition, Anderson submitted Medicaid documents on November 4, 2021, claiming its value was $194,000. He admitted the valuation was false, though prosecutors did not disclose the car’s actual worth. The judge described the scheme as “obviously fraudulent and illegal.”
How the Vehicle Exclusion Rule Was Exploited in Medicaid Fraud
The fraud relied on Iowa Medicaid’s policy allowing one vehicle to be excluded from asset evaluations if it provides transportation for the applicant or household members. Anderson’s scheme involved transferring ownership of luxury cars, including a crashed Rolls-Royce, to clients, who then listed them as exempt under this rule. The transactions were structured to reduce reported assets and secure Medicaid eligibility.
In one case, a couple with a functional 2020 Chevrolet Equinox received a damaged Rolls-Royce Phantom V from Anderson, who claimed it was worth $194,000 on Medicaid paperwork. The car’s inoperable state raised questions about whether it qualified for the exclusion, though prosecutors did not challenge that aspect of the filing. The false valuation was part of a broader pattern of misrepresenting assets to manipulate eligibility determinations.
