Story perspectives

15 Minnesotans Indicted in $90M Medicaid Fraud Scheme

5/22/2026

Summary

Story summary

Federal prosecutors indicted 15 Minnesota defendants for a $90 million Medicaid fraud scheme.
The scheme billed Medicaid $46 million for nonexistent services by using fake autism diagnoses and paying parents kickbacks.
Prosecutors said the fraud proceeds purchased luxury cars, Rolex watches, jewelry, real estate and were wired to accounts in Kenya.
The Justice Department announced the Midwest Health Care Fraud Strike Force will add 15 prosecutors and expand its Minnesota operations.

History

Historical Context

Federal actions against Medicare and Medicaid fraud began in the late 1980s when Caremark faced a $250 million settlement for fraudulent claims, followed by a 2005 $137.5 million settlement over kickbacks. Those precedents underpin today’s Midwest Health Care Fraud Strike Force, which is probing a sizable Minnesota Medicaid fraud case and aims to expand recoveries nationwide.

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Story summary

Federal prosecutors indicted 15 Minnesota defendants for a $90 million Medicaid fraud scheme.
The scheme billed Medicaid $46 million for nonexistent services by using fake autism diagnoses and paying parents kickbacks.
Prosecutors said the fraud proceeds purchased luxury cars, Rolex watches, jewelry, real estate and were wired to accounts in Kenya.
The Justice Department announced the Midwest Health Care Fraud Strike Force will add 15 prosecutors and expand its Minnesota operations.

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