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Medicaid fraud case pending in Pembina County

North Dakota’s new Medicaid Fraud unit has begun prosecuting its first case.

The 2019 Legislature created the unit.

North Dakota was the last state to create such a unit. Attorney General Wayne Stenehjem had made the proposal for several sessions.

"Finally, the US Department of Human Services decided they were going to end the exemption thatt was created solely for the state of North Dakota," Stenehjem said. "The Department said North Dakota had to have a unit established."

Stenehjem said this case originated at a Pembina County long term care facility, where there had been an investigation into the theft of narcotics. Felony charges have been filed against Charlotte Kay Reilly of Crystal. She is accused of diverting prescription pain medications, and replacing it with over the counter drugs.

"It appears to us we have a good case, worthy of prosecuting," Stenehjem said. "It certainly underlines a very serious offense. That could have a very serious effect on the health and well-being of the patient, who is supposed to be getting those medications."

Reilly faces 11 Class C felony charges, along with one misdemeanor offense.

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