Duluth Therapist Accused of 27,430 False Medicaid Claims in $2.25 Million Scheme

Peter Jason Meilahn, a psychotherapist from Duluth, Minnesota, faces 13 felony counts after prosecutors accused him of receiving more than $2.25 million in Medicaid payments for services investigators say were not provided.

The Minnesota Attorney General’s Office said health insurer UCare referred Meilahn to the state’s Medicaid Fraud Control Unit. The criminal complaint says Meilahn operated Individual Services and also worked as a non-employee contractor with Franklin Family Services.

The criminal complaint alleges some recipients had only limited contact with Meilahn before claims continued under their names for months or years. Other recipients told investigators they had never received psychotherapy services from him.

Minnesota Court Records Online lists the Ramsey County case as open. The arrest warrant was cleared Sept. 30, and Meilahn’s next hearing is scheduled for Oct. 9.

The Complaint Alleges 27,430 Claims for Services Not Provided

The 18-page criminal complaint says UCare received a fraud complaint from a member who reported having one brief phone conversation with Meilahn in January 2023 before additional psychotherapy dates allegedly continued to be billed under the member’s coverage.

UCare reviewed nearly 2,000 psychotherapy claims submitted between January and August 2023. The complaint says 99% of the claims reflected more than 24 hours of psychotherapy per date of service when calculated from the units claimed.

The Medicaid Fraud Control Unit expanded the review and identified 468 separate days on which Meilahn allegedly submitted claims representing more than 24 hours of treatment in a single day.

Investigators ultimately identified 27,430 instances in which the complaint alleges claims were submitted for psychotherapy services that were not provided. The complaint says Meilahn received more than $2.25 million through the alleged theft-by-false-representation and identity-theft activity.

Investigators also said claims involving 117 Medicaid recipients lacked required supporting documentation. Fifteen recipients were identified as people who never had a single session with Meilahn, and eight told investigators they had not provided him with their insurance information.

The complaint says DHS also requested documentation supporting Meilahn’s Medicaid claims. After investigators said he failed to provide the required records, DHS terminated him from the Medicaid program as a provider on Jan. 3, 2026.

Claims for Seven Children Allegedly Generated More Than $150,000 in Medicaid Payments

One family described in the complaint had planned for seven children to receive psychotherapy from Meilahn. Their mother provided insurance information while arranging possible treatment.

Investigators allege none of the seven children ultimately received services from Meilahn. Claims were nevertheless submitted under their names from January 2021 through October 2023, resulting in more than $150,000 in Medicaid payments.

The complaint describes another family in which more than $127,000 was allegedly billed for psychotherapy involving two children between 2019 and 2024. Their mother told investigators neither child had received services from Meilahn.

Other recipients told investigators they attended between one and four sessions before stopping treatment, while claims allegedly continued under their names for extended periods afterward. The complaint says recipients interviewed who confirmed they had not received the claimed services were associated with more than $740,000 in billing.

The Complaint Lists 11 Theft Counts and Two Identity-Theft Counts

Meilahn is charged with 11 felony counts of theft by false representation involving more than $35,000. The complaint separates those allegations into charging periods extending from 2020 through 2026.

Minnesota’s theft statute includes intentionally false Medical Assistance reimbursement claims that misstate the costs or actual services provided by a medical-care vendor.

The remaining charges are one felony identity-theft count involving eight or more victims and another involving more than $35,000. Minnesota’s identity-theft statute covers intentionally transferring, possessing or using another person’s identity to commit or assist unlawful activity.

Court Sets $1 Million Bail or $100,000 With Conditions

An Oct. 1 conditional-release order lists two bail options. Meilahn can post $1 million cash bail or bond without the listed release conditions, or $100,000 cash bail or bond subject to court-ordered conditions.

The conditions include Level 2 supervision, making all required court appearances, surrendering his passport, signing a waiver of extradition and remaining in Minnesota unless the court gives permission to leave.

The order also bars Meilahn from working in Medicaid or other state programming while the conditions remain in effect. Minnesota Court Records Online lists his next hearing for Oct. 9 at 9 a.m. in Ramsey County.

Members Can Review Claims and Report Suspected Provider Fraud

UCare says its Medical Assistance plans transitioned to Medica One Health Plan on Oct. 1, 2026. Former UCare Medicaid members can now use a Medica Member Account to review their claims and benefits.

Minnesota residents who believe a health care provider billed Medicaid for services that were not provided can submit information directly to the Minnesota Attorney General’s Medicaid Fraud Control Unit.