Minnesota AG Keith Ellison charges 9 providers with Medicaid fraud

Author: David Griswold, Lou Raguse

ST PAUL, Minn. — Out of the Miracle Mile Shopping Center in St. Louis Park, therapist Peter Meilahn allegedly began his fraud scheme while working as an independent contractor at Franklin Family Services.

According to a criminal complaint, Meilahn received information from a mother about her seven kids, then billed Medicaid for nearly three years, claiming to provide them psychotherapy services. 

But the mom says they never once saw Meilahn.

"Patients listed in Meilahn's claims told us time and time again that Meilahn did not provide the services he claimed to provide," Minnesota Attorney General Keith Ellison said. "Some said they never had a single session with Meilahn."

Between the Twin Cities and his office in Duluth, Meilahn is accused of submitting 27,400 false claims for services he never provided, fraudulently collecting more than $2.2 million in taxpayer money. The Minnesota Department of Human Services (DHS) said it issued a payment withholding for Meilahn and his company on Aug. 13, 2024, and terminated Medicaid enrollment in January 2026. But he's still listed as having an active therapist license in Oregon.

Meilahn is one of nine people charged with defrauding the Medicaid program out of more than $3 million. According to Ellison's office, the charges were filed by its Medicaid Fraud Control Unit (MFCU), which has jurisdiction to investigate Minnesota providers suspected of committing Medicaid fraud.  

“The many charges we are filing today allege various amounts of fraud, but even one dollar stolen in defrauding a government program is too much,” Ellison said in a press release. “It outrages me that some people steal taxpayer money that we as a society have decided should support low-income folks who need specialized services so they can live with dignity, safety, and respect."

Awo Mohamed, of Roseville, is charged with six felony counts of theft after prosecutors say she bilked the Minnesota Medical Assistance program out of more than $675,000 through false claims through her assistant services agency, Always on Time. According to court documents, Mark Johnson, Qalid Hassan and Angela Johnson all conspired with Mohamed and have been charged.

“Medicaid fraud is not only a theft of taxpayer dollars, but a violation of trust that harms those who rely on these vital services,” said Special Agent in Charge Thomas Ethridge of the U.S. DHS Office of Inspector General in a press release. “The coordinated work of our local, state, and federal partners in bringing these charges shows that anyone who exploits Medicaid, whether through multimillion-dollar schemes or by abusing the people they are entrusted to care for, will be held fully accountable."

The Minnesota DHS said it issued a payment withholding for Always on Time and Mohamed on Sept. 7, 2023, and terminated Medicaid enrollment on Sept. 3, 2024. The department said it also terminated AK Care Center, Mohamed's Housing Stabilization Services program, at the same time.

"I applaud the actions announced today by the Attorney General’s Office," said Minnesota DHS Inspector General James Clark in a statement. "Assembling strong cases against perpetrators of fraud takes time, intelligence, resources and close collaboration among many government agencies. When the department found credible evidence of fraud involving businesses at the center of today’s charges, we shut off the money and terminated the providers."

Ellison also announced charges against Kiddjazzmannie Freeman, who is accused of stealing more than $17,000 for services not done, as well as exploiting a vulnerable adult out of $11,000 for personal purposes. Freeman is also charged with failing to provide healthcare and supervision, and allegedly stole the vulnerable adult's identity to obtain an EBT card. 

Michelle Reed and Letrice Spigner, both of Minneapolis, and Chala Alemo, of St. Paul, are accused of reporting services that were never provided. According to the charges, Reed and Spigner said they provided services while clocked in at other jobs. 

"I want everyone to hear this loud and clear: if you commit Medicaid fraud in the state of Minnesota, we will investigate you, we will prosecute," Ellison said during a press conference Tuesday. "We've got more resources and more people power than ever to take these crimes forward." 

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Minnesota AG Keith Ellison charges 9 providers with Medicaid fraud