Garner Attorney Gets 6 Months in Rolls-Royce Medicaid Fraud Case

GARNER, Iowa — A Garner attorney was sentenced Sept. 11 to six months in federal prison for making a false statement to Iowa Medicaid, according to the U.S. Attorney’s Office for the Northern District of Iowa.

Timothy Mark Anderson, 67, pleaded guilty Oct. 30, 2025, to one count of false statement relating to a health care matter, according to a news release from the office dated Sept. 28. U.S. District Judge Leonard T. Strand sentenced him in Cedar Rapids.

Strand also fined Anderson $25,000 and ordered him to pay $184,274.36 in restitution to Iowa Medicaid, the release said. Anderson must serve two years of supervised release after his prison term. The release noted there is no parole in the federal system.

In sentencing Anderson, Strand found that his luxury vehicle sales to elderly Medicaid applicants were “obviously fraudulent and illegal,” according to the U.S. Attorney’s Office.

Evidence at Anderson’s plea and sentencing hearings showed he is an Iowa-licensed attorney who offers financial, tax and estate planning services from a law office in Garner, according to the release. His services included helping elderly clients apply for Medicaid-funded nursing home care. He also is a collector of Rolls-Royce and other luxury vehicles.

Under Iowa Medicaid rules, an applicant’s financial resources are evaluated for eligibility. One automobile is exempt, regardless of value, if it is used to transport the applicant or a member of the applicant’s household.

Between 2017 and 2022, Anderson told elderly clients and their heirs to carry out a series of transactions involving his vehicle collection, according to the U.S. Attorney’s Office. Families were directed to have the elderly person “buy” one of Anderson’s vehicles before applying for Medicaid, then “gift” it to heirs, who “sold” it back to Anderson at a lower price. The purported buyers never drove the vehicles and, for the most part, never saw them.

In one example cited by the U.S. Attorney’s Office, an elderly couple had more than $400,000 in assets in 2021. The husband was receiving nursing home care without public assistance, and the couple wanted Iowa Medicaid to pay for it while passing their assets to their heirs.

In October 2021, Anderson deposited a $186,000 check from the wife into his personal savings account and gave her the title to a 1961 Rolls-Royce Phantom V, according to the release. A bill of sale listed the transfer date as Oct. 18, 2021. Two days earlier, Anderson had driven the car and been in an accident that left it inoperable with front-end damage. It was towed to a farm shop.

On Nov. 4, 2021, Anderson submitted documents to Iowa Medicaid to qualify the husband for benefits, including a form stating the Phantom V had a fair market value of $194,000, according to the U.S. Attorney’s Office. The office said Anderson knew at the time that the car was not worth that amount.

Anderson was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be determined.

Assistant U.S. Attorney Timothy L. Vavricek prosecuted the case, which was investigated by the FBI. The case number is 25-CR-3053. Court records are available through the U.S. District Court for the Northern District of Iowa’s electronic filing system.