St. Paul Business Owner Accused of Stealing $4 Million from Minnesota Medicaid

May 23, 2026 - 09:41

A St. Paul business owner has been charged in federal court for allegedly running a $4 million Medicaid fraud scheme, according to court documents filed this week. Prosecutors say the woman submitted false claims for services that were never actually provided to patients, pocketing millions in taxpayer money over several years.

The business, which operated as a home health care provider, billed Minnesota's Medicaid program for personal care assistant services, therapy sessions, and nursing visits that either did not happen or were not medically necessary. Investigators found patterns of billing for services on dates when patients were hospitalized, out of state, or even deceased. In some cases, the same service was billed multiple times for the same patient on the same day.

Court records show the scheme ran from at least 2018 through 2023. The owner allegedly used the money for personal expenses, including luxury vehicles, travel, and real estate purchases. She faces charges of health care fraud, money laundering, and making false statements. If convicted, she could face decades in prison and be ordered to pay restitution.

The case is part of a broader crackdown by state and federal authorities on Medicaid fraud in Minnesota. Officials said the scheme diverted funds meant for vulnerable residents who rely on the program for essential care. The investigation involved the FBI, the Minnesota Attorney General's Office, and the state's Medicaid Fraud Control Unit. An arraignment is scheduled for next month.