MINNEAPOLIS—A Minnesota woman has been convicted on federal health-care fraud charges for orchestrating a $3.6 million scheme targeting the state’s now-defunct Medicaid Housing Stabilization Services program.
A federal jury found Sharmaine Meadows, 45, of Lake Elmo, guilty of three counts of health care fraud after prosecutors said her company billed Medicaid for housing services that were never provided.
The Housing Stabilization Services program was designed to help Medicaid beneficiaries transition into housing and remain housed. Providers were permitted to bill for up to 150 hours of transitional services and another 150 hours of sustaining services for each eligible beneficiary.
Prosecutors said Meadows instructed employees to maximize billing up to those limits regardless of whether the services had actually been performed.
Evidence presented at trial showed her company billed the program for in-person services supposedly performed by employees who were actually in other states or overseas, including workers in the Philippines who were paid $6 an hour.
The government also presented evidence that Meadows submitted claims for services allegedly provided to beneficiaries who were hospitalized at the time.
Billing records showed instances in which Meadows’ company claimed employees were providing more than 20 hours of services a day for extended periods.
Medicaid beneficiaries testified that they received little or no assistance from the company, despite being told they had exhausted the hours available to them through the program.
Between 2020 and 2025, the Housing Stabilization Services program paid more than $3.6 million to Meadows’ company into accounts she controlled.
Federal officials said widespread fraud contributed to rapidly escalating costs in the program, which was eventually shut down after spending dramatically exceeded initial estimates.
Meadows faces a maximum sentence of 10 years in prison on each of the three health-care fraud counts. Her sentencing will be scheduled for a later date.
The case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General and IRS Criminal Investigation.