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Attorney General Marty Jackley

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Sioux Falls Man Sentenced in Medicaid Fraud Case

FOR IMMEDIATE RELEASE:  Thursday, December 28, 2017   
CONTACT:  Sara Rabern (605) 773-3215   

PIERRE, S.D. - Attorney General Marty Jackley announced today that Steven P. Haddorff, 64, Sioux Falls, was sentenced for a Medicaid Fraud offense.

Second Circuit Magistrate Court Judge Patrick Schroeder ordered Haddorff to serve 30 days in jail, suspended all 30 days, and placed Haddorff on one year of probation. The Court noted that Haddorff paid a total of $130,000 in restitution and costs.

“Medicaid is a partnership between the state and federal government to take care of those in need. Our office will continue to ensure these taxpayer dollars are going to those in need through enforcement measures,” said Jackley.

Haddorff pleaded guilty on March 31, 2017, in Minnehaha County to one count of Failure to Keep Records, a class 1 misdemeanor, pursuant to a plea agreement reached with the State. Haddorff's company, Wheelchair Express, Sioux Falls, submitted claims to SD Medicaid for transportation services.  Haddorff admitted that he failed to maintain sufficient records to fully substantiate some of the Medicaid claims. The State and Haddorff agreed that the value of the errant Medicaid claims is at least $64,601.58.  The restitution amount of $130,000 includes the value of the errant claims, and the application of double damages to some of the errant claims. Haddorff paid the full amount of $130,000 on March 31, 2017.

Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Kansas City Regional Office, stated “Our Office will continue to work with our law enforcement partners, as well as state agencies, to identify and pursue healthcare providers who file false claims for reimbursement to HHS funded programs.”

The case was investigated and prosecuted by the South Dakota Attorney General's Medicaid Fraud Control Unit, with assistance from the South Dakota Department of Social Services, the US Department of Health and Human Services - Office of Inspector General, the United States Attorney’s Office for South Dakota, the South Dakota Division of Criminal Investigation, the Sioux Falls Police Department, the Minnehaha County Sheriff's Office, and the Minnehaha County State’s Attorney’s Office.