A federal jury in St. Paul, Minnesota, has convicted Sharmaine Meadows, 45, of Lake Elmo, for defrauding the state’s now-defunct Medicaid Housing Stabilization Services (HSS) Program of more than $3.6 million, according to the U.S. Department of Justice (DOJ).
The jury found Meadows guilty of three counts of health care fraud after a trial involving claims for housing support services that prosecutors said were never provided. The program was designed to help eligible Medicaid beneficiaries, including people experiencing homelessness and individuals with disabilities, find and maintain stable housing.
According to the DOJ, the scheme involved billing for services that employees could not have provided, including hours claimed while workers were outside the state or country. Meadows faces a maximum penalty of 10 years in prison on each count.
Key details of the case
| Detail | Information |
|---|---|
| Defendant | Sharmaine Meadows, 45 |
| Residence | Lake Elmo, Minnesota |
| Program involved | Minnesota Medicaid Housing Stabilization Services |
| Amount paid to Meadows’ company | More than $3.6 million |
| Period covered | 2020 to 2025 |
| Conviction | Three counts of health care fraud |
| Court location | St. Paul, Minnesota |
| Maximum potential penalty | 10 years per count |
| Sentencing | To be scheduled |
DOJ says Meadows billed for housing services that were not provided
According to court documents and evidence presented at trial, Meadows orchestrated a scheme to bill the HSS Program for services intended to help eligible beneficiaries transition into housing and maintain stable living arrangements.
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The program allowed providers to bill up to 150 hours for transitional services and another 150 hours for sustaining services per eligible beneficiary. Prosecutors presented evidence that Meadows routinely instructed employees to maximize billings up to the permitted limit, even when the corresponding services had not been delivered.
The DOJ said Meadows’ company received more than $3.6 million in HSS payments between 2020 and 2025. The funds were deposited into accounts that Meadows exclusively controlled.
Evidence showed billing for impossible work hours
Evidence presented at trial indicated that Meadows’ company submitted claims for in-person services supposedly delivered by employees who were in other states, including Illinois, or in other countries, including the Philippines.
The DOJ also said Meadows submitted claims for services when beneficiaries were hospitalized and therefore could not receive the billed assistance as represented.
Data analysis showed billing patterns that indicated employees were recorded as working more than 20 hours a day, every day, for weeks. Beneficiaries testified that they received little or no assistance from the company, even though claims had been submitted for services on their behalf.
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Some beneficiaries also testified that employees told them they had exhausted their available program hours despite receiving little or no support.
HSS program fraud raised concerns about oversight
Minnesota’s Housing Stabilization Services Program was intended to help eligible Medicaid beneficiaries find housing and remain in their homes. It served people facing housing instability, including individuals with disabilities and people experiencing homelessness.
The DOJ said fraud schemes, including the one involving Meadows, contributed to the program’s costs rising far beyond initial estimates. The HSS Program was ultimately shut down in 2025.
Assistant Attorney General Colin M. McDonald of the DOJ’s National Fraud Enforcement Division said the verdict demonstrated that people who misuse public programs intended to help vulnerable communities would be held accountable.
U.S. Attorney Daniel N. Rosen for the District of Minnesota also said his office would continue pursuing cases involving the alleged theft of taxpayer funds.
Meadows faces up to 30 years in prison
The jury convicted Meadows of three counts of health care fraud. Each count carries a maximum potential sentence of 10 years in prison, meaning she faces up to 30 years in total if the maximum penalties were imposed consecutively.
Her sentencing date has not yet been announced. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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The FBI Minneapolis Field Office, the Department of Health and Human Services Office of Inspector General (HHS-OIG), and the Internal Revenue Service Criminal Investigation division investigated the case.
Trial attorneys Brant Cook and Emily Reeder-Ricchetti of the DOJ’s Health Care Fraud Section, with assistance from trial attorney Jody King and Assistant U.S. Attorney Matthew Murphy for the District of Minnesota, prosecuted the case.
DOJ continues enforcement against health care fraud
The DOJ’s National Fraud Enforcement Division investigates and prosecutes fraud involving government programs and taxpayer funds. The department’s Health Care Fraud Strike Force Program operates across multiple federal districts and works with law enforcement partners to investigate schemes involving federal health care programs and private insurers.
According to the DOJ, the strike force program has charged more than 6,200 defendants since 2007 in cases involving more than $45 billion in allegedly fraudulent billings to federal health care programs and private insurers.
The Meadows conviction is part of federal enforcement efforts targeting fraud involving public health care benefits. Such schemes can divert funding from programs intended to provide essential services to eligible beneficiaries.
To read the original order please visit DOJ (Department of Justice) website