Conviction in $3.6 Million Medicaid Housing Scheme

A federal jury in St. Paul convicted a Minnesota woman of carrying out a scheme to steal $3.6 million from the state’s Medicaid Housing Stabilization Services Program, DOJ announced October 8. The department’s Office of Public Affairs said the jury returned its verdict the previous day.

DOJ described the program as now defunct. It was intended to help unhoused Medicaid beneficiaries move into housing and remain there. Providers could bill up to 150 hours for transitional services and 150 hours for sustaining services per eligible beneficiary.

According to DOJ, the jury convicted the woman of three counts of health care fraud. Sentencing is scheduled for a later date, and she faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.