Alleged GPS trickery leads to Medicaid fraud charges

Two Clare County siblings have been charged with conspiracy and Medicaid fraud over a travel-reimbursement swindle that takes money from the state and federal government.

Attorney General Dana Nessel said April 29 that Steven John Caplan, 31, and Kayla Marie Earls, 35, both of Harrison, had been arraigned before Judge Lisa Babcock of the 54B District Court in East Lansing for allegedly committing transportation fraud in the Medicaid program.

Caplan has been charged with one count of conducting a continuing criminal enterprise, a 20-year felony; one count of Medicaid fraud — conspiracy, a 10-year felony; and ten counts of Medicaid fraud — false claim, each a 4-year felony.

Earls has been charged with one count of Medicaid fraud — conspiracy and one count of Medicaid fraud – false claim. The Michigan Medicaid program provides mileage reimbursement to enrolled beneficiaries when they travel to eligible medical appointments.

Sometimes, Medicaid uses a smartphone app to track mileage to these appointments using a GPS receiver. When a trip is complete, the reimbursement payment is added to a payment card beneficiaries receive when they register for this program. The card can then be used like any debit card.

It is alleged that the defendants participated in a scheme where another app tricks a phone into reporting that it was someplace it was not, then submits reimbursement requests for trips that never took place.

In fiscal year 2025, the state and federal government paid about $1.1 million to between 198,000 and 205,000 people, according to a document Michigan Capitol Confidential obtained through a records request from the Michigan Department of Human Services.

This matter was referred to the Department of Attorney General by the Michigan Department of Health and Human Services, Office of Inspector General (DHHS-OIG).

“Medicaid dollars provide essential care for Michiganders, and my office will not tolerate those who defraud the system,” said Nessel. “I want to again thank DHHS-OIG and the Clare County Sheriff’s Office for their partnership in investigating this matter. We will continue to hold accountable individuals who steal from taxpayers and divert funds away from the residents who need them most.”

Caplan was given a $100,000 cash/surety bond and Earls was given a $10,000 cash/surety bond.

Both were next due to appear in the 54B District Court for a probable cause conference.

The attorney general’s Health Care Fraud Division is handling this case.

The division is the federally certified Medicaid fraud control unit for Michigan, and it receives 75% of its funding from the U.S. Department of Health and Human Services under a grant award totaling $5,517,524.00 for the fiscal year 2026. The remaining 25% percent, totaling $1,839,170.00, is funded by the State of Michigan.