Federal prosecutors have charged a fifth suspect in a Milwaukee-based Medicaid fraud scheme that stole more than $15 million from Wisconsin taxpayers. The U.S. Attorney's Office announced Thursday that 37-year-old Jasmine Cooper faces health care fraud and aggravated identity theft charges for her role in a multi-layered operation that used prenatal care companies as fronts for systematic billing fraud. Cooper, the former owner of Bundle of Love Prenatal, has agreed to plead guilty.
The scheme centered on Milwaukee prenatal service agencies that were supposed to connect low-income pregnant women and new mothers with vital healthcare and counseling. Instead, prosecutors say the agencies functioned as fronts for systematic overbilling, using stolen identities, falsified records, and kickbacks like free baby items to exploit recipient insurance numbers. The combined regional schemes cost Wisconsin Medicaid more than $15.5 million. Cooper joins four other defendants already charged in connection to prenatal care fraud across Wisconsin. Three prominent owners have already received lengthy federal prison terms, with sentences ranging from five to more than ten years behind bars.
First Assistant U.S. Attorney Brad D. Schimel said the fraud went beyond stealing money. "When individuals defraud these programs, they are not only stealing money from taxpayers, but they are also depriving services to women and children who truly need them," Schimel stated. According to the U.S. Attorney's Office, "Programs like the prenatal care coordination program are designed to provide much needed assistance to some of our most vulnerable neighbors." The charges detail how Cooper used her position as agency owner to orchestrate the theft of millions of dollars meant for some of Wisconsin's most vulnerable residents.
The sentencing patterns from earlier cases show federal authorities treating the fraud as a serious crime with significant financial consequences. Markita Barnes, former owner of Here For You Prenatal Care Coordination Services, received a 121-month sentence and owes more than $2.3 million in restitution. Precious Cruse, who ran Caring Through Love, was sentenced to 111 months in prison with a restitution order of roughly $780,600. Lakia Jackson received a 60-month sentence with restitution totaling $2.6 million. Demaryl Howard, founder of Fortunate Futures, has agreed to plead guilty to health care fraud and will forfeit $4.3 million, while his employee Pongella Welch is also entering a guilty plea for making false statements regarding healthcare benefits.
The case highlights how programs designed to protect vulnerable populations can become targets for sophisticated fraud operations. The prenatal care coordination program exists specifically to help low-income pregnant women access critical services during pregnancy and after childbirth. By creating what appeared to be legitimate healthcare agencies, the defendants allegedly exploited both the trust placed in these programs and the real needs of the communities they claimed to serve. With five defendants now charged and millions in restitution orders on the books, federal prosecutors are sending a clear message that defrauding healthcare programs meant for vulnerable mothers and children carries serious prison time and financial penalties.