MILWAUKEE — Federal prosecutors have announced new health care fraud and identity theft charges against a Brown Deer woman as part of a massive, nationwide law enforcement takedown targeting more than $6.5 billion in medical fraud and drug diversion schemes.
“Programs like the prenatal care coordination program are designed to provide much needed assistance to some of our most vulnerable neighbors,” First Assistant U.S. Attorney Brad D. Schimel said. “When individuals defraud these programs, they are not only stealing money from taxpayers, but they are also depriving services to women and children who truly need them. We will continue to work with our law enforcement partners to hold accountable those who choose to abuse these essential programs for personal gain.”
Schimel announced Thursday that 37-year-old Jasmine Cooper faces federal charges for submitting thousands of false claims to Wisconsin Medicaid between 2019 and 2022. Cooper, the owner of Bundle of Love Prenatal LLC, has signed a plea agreement indicating her intention to plead guilty to charges involving $5.8 million in fraudulent claims, of which $5.4 million was paid out. Her plea hearing is scheduled for July 9 before Chief U.S. District Judge Pamela Pepper.
Federal officials emphasized that Cooper’s case is part of a broader crackdown on local prenatal care coordination agencies that has now resulted in convictions or pending guilty pleas for six Milwaukee-area operators and associates.
Combined, the regional schemes cost Wisconsin Medicaid more than $15.5 million. The agencies, originally established to connect low-income pregnant women and new mothers with vital healthcare and counseling, instead functioned as fronts for systematic overbilling, using stolen identities, falsified records, and kickbacks like free baby items to exploit recipient insurance numbers.
Three prominent owners have already received lengthy federal prison terms from Judge Pepper as part of the ongoing crackdown. Markita Barnes, former owner of Here For You Prenatal Care Coordination Services, received a 121-month sentence in March after a federal jury convicted her on 20 felony counts. She owes more than $2.3 million in restitution. Schimel emphasized the direct harm to the community in an earlier statement, noting that Barnes stole limited public resources that were intended for neighbors most in need of public assistance and that many people in need will not receive help due to her actions.
Precious Cruse, who ran Caring Through Love, was sentenced in January to 111 months in prison following a 17-count felony conviction, with a restitution order sitting at roughly $780,600. Regarding her conviction, Schimel previously noted that the lengthy prison sentence and immediate remand of the defendant into custody are clear messages to anyone who steals from social service programs designed to help vulnerable neighbors. He stated that federal authorities are pursuing these individuals and they will be held accountable.
Lakia Jackson received a 60-month sentence in March after pleading guilty to health care fraud and identity theft, resulting in a forfeiture and restitution total of $2.6 million. As part of her plea agreement, Jackson formally acknowledged that by committing this fraudulent scheme, she enriched herself at the expense of the community she was supposed to be helping, and that she thereby reduced the resources available to mothers and babies at risk for negative birth outcomes, including infant death.
Following Jackson’s sentencing, Schimel warned that the fallout of these widespread fraud rings stretches beyond the immediate dollar amounts stolen. Schimel noted that Judge Pepper summarized the seriousness of the issue well when she observed that the defendant took a huge amount of money designed to help people in great need. According to Schimel, Pepper pointed out that due to this massive fraud, not only are millions of dollars in public benefits gone, but decision-makers in government are reluctant to fund programs, meaning many at-risk pregnant women and new moms will not get the help they need.
The remaining defendants tied to the $15.5 million regional total include Demaryl Howard, the founder of Fortunate Futures, who has agreed to plead guilty to health care fraud and will forfeit $4.3 million at a formal plea hearing scheduled for June 26. One of his employees, Pongella Welch, is also entering a guilty plea for making false statements regarding healthcare benefits.
The prenatal care cases were investigated by the FBI with substantial assistance from the Wisconsin Department of Justice Medicaid Fraud and Elder Abuse Control Unit, forming a local anchor for the Department of Justice’s nationwide health care fraud enforcement action that netted 455 total defendants this week.
