Assisted Living Fraud Defense

Experienced Defense Counsel for Individuals and Assisted Living Facilities Accused of Fraud

Oberheiden P.C. is a criminal defense law firm that represents assisted living facilities and associated individuals in state and federal law enforcement matters. If the U.S. Department of Justice (DOJ), U.S. Department of Health and Human Services’ Office of Inspector General (HHS OIG), or any other agencies are looking into your facility’s billing practices and finances, our defense attorneys can help you fight to avoid unnecessary consequences.

We have extensive experience representing healthcare providers and other clients facing fraud allegations involving Medicaid and other government programs. Several of our defense attorneys are former federal prosecutors who have experience on both sides of high-stakes Medicaid fraud cases. With state and federal authorities specifically targeting fraud in the assisted living sector, facing an investigation presents substantial risks, and targeted entities and individuals must be prepared to fight to avoid unnecessary penalties.

Minnesota Fraud Scandal with “Millions Misused” Brings Assisted Living Fraud to the Forefront

The current focus on assisted living fraud stems from the Minnesota fraud scandal that made national headlines in late 2026. Prosecutors have targeted (and, at the time of writing, are continuing to target) numerous entities and individuals accused of obtaining millions in taxpayer dollars intended to support assisted living programs through illicit means. In response to the scandal, Minnesota Governor Tim Walz established a new position to combat fraud in the state’s service programs, and authorities at the federal level have signaled that they are prepared to seek accountability for both past and future fraud schemes in the assisted living sector.

Our assisted living fraud defense lawyers are available to assist defendants in Minnesota and throughout the United States. Whether investigators are working to substantiate charges or you have already been indicted for fraud, we can help. If it is not too late, we can intervene in the government’s investigation and work to prevent investigators from gathering the evidence prosecutors need to prove fraud in court. If you are already facing charges, we can seek to have the judge dismiss your charges prior to trial, and we can fight to protect you against a conviction at trial if necessary.

Examples of Potential Charges in Assisted Living Fraud Investigations

Allegations of improperly receiving state payments under Medicaid can lead to a variety of charges against assisted living facilities and associated individuals. Some examples of potential charges in these cases include:

Conspiracy

In many cases, prosecutors will use conspiracy charges to pursue charges against numerous entities and individuals accused of participating in large-scale fraud schemes. Under the federal conspiracy statute, even individuals who are only tangentially involved in alleged fraud schemes can face the risk of being convicted at trial.

False Claims Act Violations

The federal False Claims Act and comparable state statutes prohibit assisted living facilities and other entities from submitting “false or fraudulent” claims for reimbursement under government healthcare programs (i.e., Medicare and Medicaid). In some states, assisted living facilities have been allowed to operate with little oversight for decades. Now, prosecutors are cracking down on these facilities and pursuing charges involving years’ worth of program billings.

Medicaid Fraud

Medicaid fraud can be prosecuted at the state and federal levels. While Medicaid is a federal program, it is administered through state health departments and agencies, and state Medicaid Fraud Control Units (MFCUs) work with the DOJ and HHS OIG to uncover and prosecute cases of billing non-compliance.

Money Laundering

Entities and individuals accused of improperly obtaining payments under Medicaid and other benefit programs will often face money laundering charges as well. The federal money laundering statute prohibits entities and individuals from engaging in financial transactions involving funds obtained through illicit means, and this means that prosecutors can pursue money laundering charges in a wide range of circumstances.

Wire Fraud

The federal wire fraud statute prohibits communicating via telephone or the Internet in connection with the perpetration of any other form of fraud. As a result, prosecutors can pursue wire fraud charges in a wide range of circumstances as well. In assisted living fraud cases prosecuted at the federal level, wire fraud charges can carry six-figure fines and up to 20 years of federal prison time.  

How Our Career Defense Attorneys and Former Federal Prosecutors Can Help

With the current focus on prosecuting assisted living fraud at the state and federal levels, entities and individuals accused of fraud can face invasive investigations and high-stakes criminal charges. As a result, an informed and strategic defense is critical. Here are just some of the ways the career defense attorneys and former federal prosecutors on our team can help:

• Immediate Intervention – Once you engage Oberheiden P.C. to represent you, our defense attorneys can immediately intervene in the government’s investigation. We can work to keep any explosive information or allegations from being made public, and we can challenge any improper tactics or flawed assumptions that have the potential to lead to unwarranted consequences.
• Strategic Advice – Our defense attorneys will provide custom-tailored strategic advice based on the specific circumstances and allegations at hand. When facing serious fraud allegations, one of the costliest mistakes you can make is to neglect your defense. Our attorneys can provide the advice you need to make informed and timely decisions.
• Strategic Defense – We will build and execute a strategic defense based on the specific facts and circumstances of your case. Whether this involves affirmatively demonstrating Medicaid billing compliance, challenging the government’s evidence of intent, or defending you by other means, we will do what we can to protect you to the fullest extent possible.
• Targeting a Pre–Charge (or Pre-Trial) Resolution – We target favorable pre-charge resolutions for our clients whenever possible. If you have already been charged, we can use pre-trial hearings and motions practice to seek dismissal before your trial date arrives. Of course, there are no guarantees, and we help our clients understand when it makes sense to focus on settling with the government or negotiating a plea bargain as well.
• Trial Representation as Necessary – If going to trial is your best (or only) option, our defense attorneys will fight to protect you by all means available. Several of our senior defense attorneys have extensive trial experience, and we have the capabilities and resources required to effectively litigate against the government in state or federal court.

FAQs: Defending Against Allegations of Assisted Living Fraud

In Which States Are Prosecutors Targeting Assisted Living Fraud?

So far, we are aware of prosecutors targeting assisted living fraud in Maine, Minnesota, and New York. However, there is a high likelihood that investigations in other states are already underway, and we expect this list of states to grow in 2026, 2027, and beyond.

Why Are Prosecutors Targeting Assisted Living Facilities and Nursing Homes?

Prosecutors are targeting assisted living facilities and nursing homes due to allegations that these facilities have obtained millions in taxpayer dollars through fraudulent state payments under the Medicaid system. Collectively, Medicare and Medicaid fraud cost taxpayers more than $100 billion annually, and it is widely believed that a significant portion of this fraud occurs in the assisted living and long-term care sectors.

How Are State and Federal Authorities Identifying Targets for Assisted Living Fraud Investigations?

State and federal authorities are identifying targets for assisted living fraud investigations through various means. In many cases, they are relying on tips from state whistleblowers—individuals who claim to have inside information about fraudulent Medicaid billing practices and other forms of fraud and abuse. In others, they are relying on information obtained through subpoenas, search warrants, sworn statements and testimony, and other means. Oftentimes, prosecutors will pressure or incentivize one defendant to provide information that leads to charges against another.

What are the Risks of Facing an Assisted Living Fraud Investigation?

The risks of facing an assisted living fraud investigation are substantial. These investigations lead to criminal charges in many cases, and charges for Medicaid fraud and other crimes can carry six-figure fines (or, in some cases, seven-figure fines) and decades of prison time. For licensed providers, losing their professional license is a risk as well—and this can be true even if criminal charges aren’t on the table.

When Should I Engage a Defense Attorney?

We strongly recommend that you engage a defense attorney at the first sign that you are facing scrutiny related to potential assisted living fraud. In this scenario, you do not want to wait and see what happens. The longer you wait, the more time investigators and prosecutors will have to build their case unchecked, and the more difficult it will become to pursue a favorable pre-charge or pre-trial resolution.

Schedule a Confidential Consultation with a Senior Defense Attorney at Oberheiden P.C.

If you are facing assisted living fraud allegations (or if you are concerned about facing assisted living fraud allegations), we strongly encourage you to contact us right away. To speak with a senior defense attorney at Oberheiden P.C. in confidence as soon as possible, call 888-680-1745 or request a free initial consultation online now.