An Iowa attorney who sold a wrecked Rolls-Royce to an elderly client for $186,000 has been sentenced to six months in federal prison for making a false statement to Medicaid.
Timothy Mark Anderson, 67, of Garner, Iowa, used his collection of luxury vehicles to help elderly clients qualify for Medicaid-funded nursing home care while preserving assets for their heirs.
Federal prosecutors said the transactions involved expensive vehicles that clients often never drove or even saw, raising questions about their actual ownership and value.
On September 11, 2026, U.S. District Judge Leonard T. Strand sentenced Anderson to six months in prison, ordered him to pay $184,274.36 in restitution, and imposed a $25,000 fine.
Luxury Car Scheme
Embedded media follows; please allow a moment to load.
According to the U.S. Department of Justice, Anderson provided estate-planning, financial, and tax services, including assistance with helping elderly clients apply for Medicaid benefits.
Between 2017 and 2022, Anderson arranged transactions in which elderly clients purchased luxury vehicles from his collection, transferred them to heirs, and had those heirs sell them back to him for less money. Many clients never saw or drove the vehicles.
The scheme exploited Medicaid eligibility rules that, under certain circumstances, exclude one vehicle from an applicant’s countable resources.
The $186K Transaction
One transaction involved an elderly Iowa couple with more than $400,000 in assets, including a 2020 Chevrolet Equinox worth approximately $30,000. The husband was receiving nursing home care when they sought Anderson’s assistance with Medicaid eligibility.
To help them, Anderson arranged for the couple to buy his 1961 Rolls-Royce Phantom V, even though he had crashed it on October 16, 2021, leaving the luxury car inoperable with front-end damage that required towing to a farm shop.
Despite the damage, Anderson documented its sale to the elderly woman for $186,000 just two days later and deposited her payment into his personal savings account.
The transaction became the basis for the couple’s Medicaid application. On November 4, Anderson submitted paperwork valuing the Rolls-Royce at $194,000, even though he knew the damaged vehicle was not worth that amount.
Iowa Medicaid rejected the application, and the unusual vehicle transaction subsequently became part of an FBI investigation into Anderson’s financial arrangements with elderly clients, as detailed by Iowa Capital Dispatch.
Prison And Suspension
Anderson pleaded guilty on October 30, 2025, to one count of making a false statement relating to a healthcare matter.
At sentencing, Judge Strand called the luxury vehicle transactions “obviously fraudulent and illegal.”
In addition to his prison sentence, Anderson must serve two years of supervised release.
The Iowa Supreme Court also ordered the temporary suspension of his law licenses on September 25, 2026.
Anderson’s attorneys told the court that he had accepted responsibility, cooperated with federal prosecutors and disciplinary officials, and begun transferring his law practice.
The DOJ reported on September 28 that Anderson remained free on bond and would surrender to the Bureau of Prisons on a date not yet set.