Great Lakes Wire

Kaila Oman, 37, of Galesburg, was arraigned yesterday in the 54B District Court in East Lansing before Judge Lisa Babcock on two counts of Medicaid Fraud – False Claim, a felony punishable by up to four years’ imprisonment and/or $50,000, announced Michigan Attorney General Dana Nessel. Oman pled guilty as charged the same day.

Oman owned Mosaic Learning Center, a facility with locations in Galesburg, Coldwater, and Lansing that provides services to children with emotional disturbances and developmental disabilities. The investigation conducted by the Attorney General revealed that Oman billed the Medicaid program for services that were never provided, including billing during a period when the Coldwater clinic was closed.

“Medicaid funds critical services for those who need them,” said Nessel. “My office will remain vigilant to protect these funds from those who abuse the program.”

The case will be transferred to the 30th Circuit Court in Ingham County for sentencing. No date for sentencing has been set. Oman remains free on bond while she awaits sentencing.

The Attorney General’s Health Care Fraud Division (HCFD) handled this case for the Department. The HCFD is the federally certified Medicaid Fraud Control Unit for Michigan and receives 75% of its funding from the U.S. Department of Health and Human Services under a grant award totaling $5,541,992 for fiscal year 2024. The remaining 25%, totaling $1,847,326 is funded by the State of Michigan.

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