Sartell woman pleads guilty in $9 million loan fraud scheme, U.S. attorney says
MINNEAPOLIS — A 40-year-old Sartell woman has pleaded guilty to wire fraud in connection with a scheme that cost two loan companies over $9 million.
According to U.S. Attorney Andrew Luger, the woman founded and operated the Minnesota business Baby's on Broadway, which sold baby products and toys.
In an effort to bring revenue into the company, the woman created a company called Sunshine Medical LLC.
She reached out to two lenders on behalf of Baby's on Broadway, Liquid Capital Enterprises Corp. and Slope Tech. Inc., asking for money to buy inventory from Sunshine Medical.
Luger says Sunshine Medical had no business operations or revenue and the woman had created fake medical invoices for that company. The invoices were sent to the lenders by means of wire communications.
The woman received over $9 million over the course of her scheme.
Luger says the woman also submitted fraudulent claims to TRICARE, a U.S. Department of Defense Military health system.
The insurance program paid out many of her claims, but eventually started rejecting them, which led the woman to create Sunshine Medical.
The woman was not charged in connection to the fraudulent TRICARE claims.
The FBI, U.S. Department of Defense and Defense Health Agency of Inspector General investigated this case.
