Minnesota fraud: Therapist charged in $2.25M Medicaid scheme

A Minnesota therapist is accused of receiving more than $2.25 million in Medicaid payments after allegedly submitting more than 27,400 claims for services that were never provided.

Therapist charged in $2.25 million Medicaid fraud

Medicaid fraud charges:

Peter Jason Meilahn, 50, is facing 13 felony charges, including 11 counts of theft by false representation over $35,000, one count of identity theft involving eight or more victims and one count of identity theft involving more than $35,000. 

According to the criminal complaint, Meilahn worked as an independent contractor with Franklin Family Services and operated his own practice, Individual Services, providing psychotherapy and behavioral health services.

Between October 2019 and March 2026, Meilahn reportedly submitted 27,430 claims for psychotherapy services that were not provided, resulting in more than $2.25 million in Medicaid payments.

Patients billed for services they never received

The backstory:

Investigators said claims involving at least 117 Medicaid recipients lacked required documentation supporting the services he billed. Of those recipients, investigators determined 15 allegedly never had a single session with Meilahn. Eight told investigators they had never provided Meilahn with their insurance information.

The complaint alleges Meilahn may have used his access to Franklin Family's billing system to obtain identifying information for additional Medicaid recipients and submit claims using their information. 

What they're saying:

Some recipients told investigators they attended between one and four sessions with Meilahn before discontinuing services, yet he allegedly continued submitting claims for services for up to four years afterward. Others said they never received services from him.

In one case, Meilahn reportedly submitted more than $127,000 in claims for psychotherapy services for two of a woman's children between July 2019 and June 2024. The woman told investigators that another of her sons had received services from the Franklin Family about a decade earlier, but the two children named in the claims had never received services from Meilahn.

In another case, a woman planned to have her seven children see Meilahn for psychotherapy services and emailed him copies of their UCare insurance cards and birthdates. The children never ended up receiving services from Meilahn, but charges allege he submitted claims for all seven between January 2021 and October 2023 and received more than $150,000 in Medicaid payments.

Search warrant for bank accounts

Dig deeper:

Meilahn opened accounts for Individual Services and himself at several financial institutions, according to the complaint.

Search warrants at these financial institutions allegedly revealed that Meilahn transferred money to "law firms, several non-bank financial technology companies and dozens of website building and artificial intelligence companies."

What's next:

Prosecutors charged Meilahn via warrant on Monday. He has yet to make his first court appearance. 

The Source: This story uses information from a Ramsey County criminal complaint. 

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