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Clare County Siblings Charged with Conspiracy and Medicaid Fraud
April 29, 2026
LANSING – Today, Steven John Caplan, 31, and Kayla Marie Earls, 35, both of Harrison, were arraigned before Judge Lisa Babcock of the 54B District Court in East Lansing for allegedly committing transportation fraud in the Medicaid program, announced Michigan Attorney General Dana Nessel. 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 will provide mileage reimbursement to enrolled beneficiaries when they travel to eligible medical appointments. In some cases, a smartphone app is made available to track mileage to these appointments using the built-in GPS of the phone. When a trip is complete, the reimbursement payment is added to a payment card mailed to the beneficiary 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 was used to effectively trick a phone into thinking it was someplace it was not and submitted reimbursement requests for trips that never took place. 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 Attorney General 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 are next due to appear in the 54B District Court on May 8 for a probable cause conference.
The Attorney General’s Health Care Fraud Division (HCFD) is handling this case for the Department. The HCFD 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.
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Please note: For all criminal proceedings, a criminal charge is merely an allegation. The defendant is presumed innocent unless and until proven guilty. The Department does not provide booking photos.
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