ABOVE: file photo.

BLUE EARTH– Federal authorities have indicted Charles Wayne Healey and Katherin Suzan Larsen-Guthmiller of Blue Earth for an alleged massive $22.7 million Medicaid fraud and money laundering scheme operated through their company, Healey Homes.

According to the justice.gov website, Healy, 61 and Larsen-Guthmiller, 66, were charged by indictment with conspiracy to commit health care fraud and money laundering. Defendants Healey and Larsen-Guthmiller operated Healey Homes from 2021 until Healey Homes was closed by the Minnesota Department of Human Services in 2025.

The defendants reportedly received $22.7 million in Medicaid reimbursements for allegedly providing Individualized Home Supports (IHS), a program strictly meant for recipients living in their own homes. The suit alleges that despite their knowledge of this requirement, Healey and Larsen-Guthmiller owned and controlled the residences where the clients lived, charging them below-market rent in exchange for being allowed to bill the state.

The case is being prosecuted by Trial Attorneys Sara Woodward and Sara Porter of the Midwest and Gulf Coast Strike Forces, and by Assistant United States Attorneys Rebecca Kline and Matt Evans of the District of Minnesota.

In an interview with the Faribault County Register in December of 2025, Charles Healy said he believed he and his company did nothing wrong and that he has nothing to hide.