Milwaukee woman accused of Medicaid fraud, money laundering

Milwaukee woman charged in alleged fraud schemes

Prosecutors charged a Milwaukee woman with Medicaid fraud, PPP fraud and money laundering, alleging she used millions in fraudulent funds to buy businesses and luxury items.

MILWAUKEE - A Milwaukee woman is facing multiple felony charges after prosecutors accused her of carrying out Medicaid fraud, PPP loan fraud and money laundering schemes tied to her home health care business.

What we know:

The Wisconsin Department of Justice charged 44-year-old Debbie Long with five felonies, including fraud and money laundering.

Federal prosecutors said Long owned Pinnacle Home Health Care, LLC, a company that provided personal care services to Medicaid members, including mobility assistance, meal preparation and bathing services.

From March 2017 through August 2022, prosecutors allege Long billed Wisconsin Medicaid for exaggerated or fabricated services, including inflated billing, fraudulent travel expenses, nonexistent services and claims with impossible hours billed for a member in a single day.

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Investigators said Long received more than $2 million in fraudulent Medicaid reimbursements.

Prosecutors also allege Long submitted a fraudulent Paycheck Protection Program loan application in 2020, claiming Pinnacle employed 120 workers with a monthly payroll of about $87,000.

Dig deeper:

According to workforce records cited by prosecutors, the company actually had 46 employees and a monthly payroll of about $36,000.

Investigators said Long then used fraudulent Medicaid reimbursements and PPP loan funds to launder money through shell companies before purchasing Kitt’s Frozen Custard on Capitol Drive, a Mercedes-Benz and an Octopus Car Wash.

What they're saying:

Lisa Grabert, a visiting research professor at Marquette University who studies Medicaid and Medicare systems, said fraud cases increased during the COVID-19 pandemic.

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"It happens at sort of a percentage of more often than we think," Grabert said. "This individual may have been doing – smaller fraud within Medicaid, even before COVID, and then branched out to PPP and sort of saw that as an additional opportunity."

Grabert said recovering fraudulent funds can help support other public priorities.

"If the government is able to recoup that amount of money, we actually use it to fund priorities in areas where people want to see things done," Grabert said.

What's next:

Long is scheduled to make her initial court appearance in July.

If convicted, she could face up to 57 years in prison and more than $10 million in fines.