Precious Cruse, 32, was sentenced to 111 months’ incarceration for committing a healthcare fraud scheme through which she stole $780,600 from a Medicaid benefit meant to help at-risk pregnant women and women with young children.
On September 22, 2025, a federal jury convicted Cruse of nine counts of healthcare fraud, two counts of false statements related to healthcare matters, two counts of violating the anti-kickback statute, one count of money laundering, and two counts of aggravated identity theft.
In announcing the sentence, Chief United States District Judge Pamela Pepper focused on the “significant and extensive” evidence of Cruse’s guilt. Chief Judge Pepper described the evidence as “overwhelming” and noted the significant impact that Cruse’s scheme had on both the taxpayers and the people she was supposed to help.
Chief Judge Pepper explained that the significant sentence of incarceration was necessary to account for the seriousness of Cruse’s conduct and to send a message of deterrence to others considering engaging in fraud against hard-working taxpayers.
In addition to the 111 months of incarceration, Chief Judge Pepper issued a money judgment to forfeit $780,600.07 and ordered Cruse to pay restitution to Medicaid in the same amount.
“The lengthy prison sentence and immediate remand of the defendant into custody are clear messages to anyone who steals from social service programs designed to help our most vulnerable neighbors: we are coming after you and you will be held accountable,” said United States Attorney Brad Schimel. “The investigators from the FBI and prosecutors from the Office of the United States Attorney did amazing work to bring this defendant to justice.”
The Federal Bureau of Investigation along with the Medicaid Fraud and Elder Abuse Control Unit investigated the case. Assistant United States Attorneys Julie F. Stewart and Kate M. Biebel prosecuted the case.
"Healthcare fraud schemes that exploit federal programs erode public trust and steal from the American people. Precious Cruse defrauded taxpayers and diverted resources that were meant to provide assistance to those who need it most, pregnant women and children,” said FBI Milwaukee Special Agent in Charge Alan Karr. “The FBI will continue to work aggressively with our partners to combat and prevent healthcare fraud.”
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