Attorney General Hanaway Secures Felony Indictments In Four Major Medicaid Fraud Cases In St. Louis

JEFFERSON CITY, Mo.  – Today, Missouri Attorney General Catherine Hanaway announced that a grand jury in Cole County has returned indictments in four major cases of alleged Medicaid fraud in the St. Louis region. Collectively, these cases account for more than $230,000 in fraudulent claims, demonstrating the Office’s Medicaid Fraud Control Unit’s (MFCU) ongoing commitment to protecting taxpayer dollars and ensuring the integrity of Missouri’s Medicaid system.

“Medicaid fraud is stealing taxpayer resources and victimizing at-risk Missourians,” said Attorney General Hanaway. “These indictments show that our Office will not hesitate to hold accountable those who exploit the system for personal gain, whether it be individuals or companies, entrusted with caring for patients.”

The following defendants allegedly defrauded Medicare programs when they were the very individuals entrusted with the care of the elderly and disabled:

Case 1: Licensed Nurse Repeats History of Fraud

In one of the most serious cases, Sharon Cox, a licensed practical nurse (LPN), has been charged with submitting 220 false nursing reports between March 2021 and November 2023 while employed through Harris Best Care, Inc. These reports included fabricated patient vital signs and records of visits that never occurred, including visits allegedly conducted while one Medicaid recipient was hospitalized. In total, Cox’s false claims resulted in Medicaid payments of more than $11,000.

Investigators also discovered that Cox was simultaneously clocking in for other Medicaid services through a separate provider, Prestige Home Health Team, while submitting nursing reports to Harris Best at the same time. This pattern mirrors Cox’s prior misconduct: in 2011, the Missouri State Board of Nursing disciplined her license for falsifying similar documentation. Attorney General Hanaway emphasized that this case illustrates the extreme betrayal of trust when licensed professionals, who have already been disciplined for fraud, continue to abuse the system.

Case 2: Company Owner Turns Business Into Fraud Operation

In this case, the scheme was not limited to a single provider. Daja Cotton, owner of Trinity Cares LLC, transformed her company into a vehicle for fraud, directing a systematic pattern of overbilling that exploited Medicaid on a large scale.

From January 2023 through September 2024, Trinity Cares consistently billed Medicaid for the maximum number of hours authorized in client care plans, a common scheme called, “billing from the care plan.” In many cases, no time records existed at all to justify the claims. This fraudulent business model allowed Cotton’s company to steal more than $141,000 from Missouri Medicaid. In a recorded interview, Cotton admitted she knew her company’s practices constituted Medicaid fraud but continued them anyway.

Case 3: Mother-Daughter Team Defrauds Medicaid

Peggy Reed and her daughter Angel Sewell collaborated in a fraudulent scheme in which Sewell, employed full-time at BJC Healthcare, and was listed as providing in-home care for Medicaid recipients while she was simultaneously on the clock working hospital shifts. Reed provided minimal services, if any, while billing was submitted under Sewell’s name.

Between January 2023 and June 2024, this scheme resulted in Medicaid paying more than $61,000 in false claims, including over $35,000 billed for a single patient. Reed also billed for overlapping services to two recipients simultaneously, resulting in nearly $4,400 in additional fraudulent payments.

Case 4: Fabricated Care While Patient Worked Security Job

MFCU also charged Sharon Jackson, a personal care attendant, and Cheri Selmane, a Medicaid recipient, in connection with a scheme that falsely billed Missouri Medicaid for in-home services never rendered. Jackson submitted 182 false claims between May 2022 and December 2023, totaling more than $19,000 in fraudulent Medicaid payments.

Investigators discovered that during the hours Jackson claimed to be providing care in Selmane’s home, Selmane was actively working as a full-time security guard for GardaWorld. Jackson’s electronic visit verification records also showed clock-ins from her own residence rather than Selmane’s address. Selmane’s active concealment of her employment from Medicaid and Family Support Division authorities further supported the fraud.

Attorney General Hanaway continued, “These cases, spanning from repeat-offender nurses, to family conspiracies, to corporate overbilling, show that Medicaid fraud comes in many forms, but the result is always the same: Missouri taxpayers and vulnerable patients suffer. Our Office will continue to pursue these cases aggressively, recover stolen funds, and ensure those responsible are held to account.”

Medicaid Fraud Control Unit Chief Counsel Arvids V. Petersons said, “Our team serves as a specialized law enforcement unit dedicated to protecting the integrity of Missouri’s Medicaid program and the safety of its most vulnerable citizens. The unit also investigates and prosecutes allegations for abuse and neglect in Missouri’s Long Term Care Facilities and other licensed facilities that care for Missouri’s most vulnerable.”

About Missouri Attorney General’s Medicaid Fraud Control Unit:
MUFCU’s mission is twofold: first, to investigate and prosecute fraud committed by Medicaid providers who unlawfully divert taxpayer dollars, and second, to hold accountable those who commit abuse, neglect, or financial exploitation in Medicaid-funded facilities. By aggressively pursuing both financial and patient-protection cases, the Unit safeguards public resources while ensuring that Missourians who rely on Medicaid receive the quality of care and dignity they deserve.

Just as MFCU demonstrates the Attorney General’s commitment to protecting vulnerable Missourians and safeguarding taxpayer dollars, the Office is proud to be home to some of the state’s most skilled prosecutors and investigators. Attorneys interested in joining this tradition of excellence and public service are encouraged to explore current opportunities at https://ago.mo.gov/about-us/job-opportunities/.

The Missouri Medicaid Fraud Control Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $3,551,892.00 for Federal fiscal year (FY) 2025. The remaining 25 percent, totaling $1,183,960.00 for FY 2025, is funded by Missouri.