The Minnesota Star Tribune digs deeper into the overlapping frauds plaguing the state,
Minnesota investigating more companies linked to those charged with Medicaid fraud
Specifically, the Star Tribune dug into the corporate holdings of five of the eight defendants indicted last month in the Housing Stabilization Services (HSS) scandal. They found,
Minnesota officials are investigating five additional companies linked to individuals recently indicted for allegedly bilking the state’s Medicaid program.
State officials also acknowledged this week they are scrutinizing another indicted provider that received millions in payments for other state services.
To keep it all straight, the Star Tribune created a nifty color graphic, complete with circles and lines, to show the overlapping ownerships of nine companies, the five defendants, and the various lines of business.
The Minnesota Department of Human Services [DHS] confirmed the fraud investigations after the Minnesota Star Tribune asked about ties between providers charged with fraud in a state housing program and additional businesses.
Which additional businesses?
The fraud allegations go beyond housing services and include DHS’ Early Intensive Developmental and Behavioral Intervention (EIDBI) program, which provides services to young people with autism, and Integrated Community Supports, which helps adults with disabilities live independently.
The criminal cases filed last month against the eight HSS defendants are still in the earliest stages, with preliminary motions being filed, etc.
Another fraud case that is further along involves the St. Paul-based addiction recovery treatment center Evergreen Recovery. The case was filed last year against three defendants and is captioned USA v. Grygo, et. al.
In court filings made last week, two of the three–Shantel Magadanz and Heather Heim–indicated that they are close to reaching plea agreement deals with prosecutors.
The original indictment included 13 counts and alleges some $30 million in overbilling to Medicaid.
The remaining (lead) defendant, Shawn Grygo, is due in court at the end of this month for a hearing on her case.
