(KNSI) – The former owner of Baby’s on Broadway in St. Cloud and Little Falls has been sentenced to 15 months in federal prison for masterminding a $9 million fraud scheme.
Prosecutors say Adelle Starin operated the store, selling baby products and toys. The 41-year-old Sartell woman submitted false claims for reimbursement to the U.S. Department of Defense’s healthcare program, TRICARE, which initially paid out the claims. When TRICARE began rejecting her claims, Starin created a fictitious company called Sunshine Medical LLC. She falsely represented to two lenders, Liquid Capital Enterprises Corp. and Slope Tech Inc., saying she needed financing to buy supplies for her store from a place called Sunshine Medical, which was a shell company. To collect the cash, Starin created fake invoices from Sunshine Medical and sent them via interstate wire transfers.
In December, Adelle Starin pleaded guilty in U.S. District Court to one count of wire fraud. In addition to the prison sentence, she must also serve three years of supervised release and pay $2.35 million in restitution.
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