Federal prosecutors have indicted two former operators of Healey Homes in Blue Earth, accusing them of carrying out a yearslong Medicaid fraud scheme that allegedly netted more than $22 million in improper reimbursements.
Charles Wayne Healey and Katherin Suzan Larsen-Guthmiller face charges including conspiracy to commit health care fraud and money laundering. Authorities allege the pair improperly billed Minnesota Medicaid between 2021 and 2025 for individualized home support services provided through Healey Homes.
According to the indictment, the defendants owned or controlled dozens of properties where beneficiaries lived and required residents to use Healey Homes as the Medicaid provider. Prosecutors also allege they billed for unnecessary or improperly documented services and used fraud proceeds to purchase luxury vehicles and jewelry.
The federal indictment seeks forfeiture of assets tied to the alleged scheme. The charges come after Healey Homes ceased operations last year following action by the Minnesota Department of Human Services.
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