Milwaukee, WI: On January 20, 2026 a federal court has sentenced a former Wisconsin business owner to 111 months in prison for orchestrating a healthcare fraud scheme that siphoned more than $780,600 from a Medicaid program meant to support vulnerable pregnant women and their children.
The sentence was handed down by U.S. District Court Chief Judge Pamela Pepper, following a jury conviction that found Precious Cruse, 32, guilty of exploiting a federally funded prenatal care coordination program for personal financial gain.
A federal jury convicted Cruse on September 22, 2025, on 17 federal charges, including healthcare fraud, making false statements related to healthcare matters, violating the federal anti kickback statute, money laundering, and aggravated identity theft.
Federal prosecutors described the sentence as a clear warning against abusing social welfare programs. U.S. Attorney Brad D. Schimel said the lengthy prison term sends a message that those who steal from programs designed for society’s most vulnerable populations will be held accountable.
Cruse was taken into custody immediately following sentencing.
According to court records, Cruse owned and operated a now defunct prenatal care coordination company in Milwaukee. Medicaid reimburses such programs to provide support services that improve pregnancy outcomes for high risk women.
Instead, prosecutors showed that Cruse offered unlawful incentives, including baby supplies, to recruit women into the program. Once enrolled, their personal information was used to submit Medicaid claims for services that were either partially delivered or never provided at all.
In some cases, women received only sporadic items like diapers or wipes. In others, they received nothing. Despite this, Medicaid was billed repeatedly under their names.
Federal investigators stressed that the scheme did more than drain public funds. It undermined trust in healthcare safety net programs meant to protect pregnant women and children.
FBI officials noted that diverting resources from Medicaid programs weakens care delivery for those who rely on them most, while placing additional strain on already limited public healthcare funding.
Along with the prison sentence, the court ordered Cruse to forfeit $780,600.07 and pay the same amount in restitution to Medicaid, reflecting the full amount fraudulently obtained through the scheme.
The financial penalties are intended to recover taxpayer funds and reinforce accountability in federally funded healthcare programs.
The investigation was led by the Federal Bureau of Investigation, working in coordination with the Medicaid Fraud and Elder Abuse Control Unit. The case was prosecuted by Assistant U.S. Attorneys Julie F. Stewart and Kate M. Biebel.
Reference:
U.S. Department of Justice. “Owner of Defunct Prenatal Care Coordination Company Sentenced to 111 Months’ Imprisonment.” United States Attorney’s Office, Eastern District of Wisconsin, January 22, 2026. https://www.justice.gov/usao-edwi/pr/owner-defunct-prenatal-care-coordination-company-sentenced-111-months-imprisonment
