The Neuropathy Treatment Clinic of Oklahoma and James Warren Linn Jr. are accused in a lawsuit of scheming to bill the Oklahoma Medicaid program for administering treatments regardless of patients’ demonstrated medical needs over a fouryear period. The state is seeking a judgment in excess of $75,000 for relief, damages and penalties.
The lawsuit was filed March 26 in Oklahoma County District Court by Attorney General Gentner Drummond on behalf of the State of Oklahoma.
Linn invested in 2016 in Sanexas neoGen medical devices, and in September 2016 he formed NTCO to offer Sanexas treatments. Linn is “a businessman with no medical certifications or medical licenses,” the lawsuit relates.
Despite Medicaid not covering Sanexas treatment, NTCO and Linn “devised a scheme to prescribe every patient diluted vitamin blend injections that contained 90% saline plus over-thecounter ingredients and the drug Carnitor – which is FDA-approved only for patients “who have an inborn error of metabolism,” the lawsuit states.
NTCO purchased Carnitor in 1-gram single dose vials – and then diluted it with saline and vitamins so that each 1g vial “could be enough product for 231 patient treatments,” the Attorney General’s office alleges.
From August 2021 into April 2023, NTCO billed the Medicaid program “for nearly every Medicaid patient treatment – approximately 1,000 times more Carnitor than actually administered,” the lawsuit claims.
From April 2023 through August 2025, NTCO billed Medicaid for “approximately 1,500 times more Carnitor than it actually administered” to patients, the lawsuit alleges.
The cost of one vial of Carnitor in June 2025 was “about $41,” the A.G.’s office reported. Distributed among 231 patient treatments, NTCO “would be reimbursed by the Oklahoma Medicaid program more than $33,000” for the 1g single-dose vial of Carnitor.
From August 2021 to late March 2026, NTCO received more than $880,000 for “fraudulent Carnitor claims,” the lawsuit asserts.
The company also received more than $300,000 “for the physical administration of the Carnitor Blend injections,” the lawsuit alleges. In addition, NTCO received nearly $200,000 for evaluation and management services “that were not medically reasonable or necessary.”
NTCO employed one physician, Dr. Liphard D’Souza, to oversee the company’s two clinics: in Oklahoma City and Tulsa. “At all times relevant to this [lawsuit], Dr. D’Souza lived in North Carolina.”
The State of Oklahoma seeks to recover treble damages and per-claim civil penalties from the Neuropathy Treatment Clinic and James Warren Linn Jr. “for making false and/or fraudulent claims…” As early as Jan. 6, 2022, NTCO “continued its practice of providing the Carnitor Blend injections to every patient, despite knowledge that medical necessity for the injections did not exist,” the lawsuit petition states.
For Federal Fiscal Year 2026, Oklahoma Medicaid has a budget of more than $10 billion. According to the Georgetown University Center for Children and Families, the federal government contributes $1.98 to Medicaid for every $1 that the State of Oklahoma invests.
The Oklahoma Medicaid system, also known as SoonerCare and SoonerSelect, has nearly 80,000 contracted health care providers across all 77 Oklahoma counties. The Medicaid system served more than 1 million Oklahomans last year. More than half of those patients were children.
The Oklahoma Attorney General’s Office Medicaid Fraud Control Unit receives 75% of its funding from the U.S. Department of Health and Human Services under a federal grant award totaling $4,765,464 for federal Fiscal Year 2026. The remaining 25%, totaling $1,588,483 for FY 2026, is funded by the State of Oklahoma. Federal Fiscal Year 2026 is defined as Oct. 1, 2025, through Sept. 30, 2026.