Founder of Milwaukee prenatal nonprofit sentenced to 2½ years for $4.3M Medicaid fraud

Demaryl Howard, founder and operator of Fortunate Futures, was sentenced Sept. 24 to 2½ years in federal prison after pleading guilty to felony health care fraud. Federal prosecutors say Fortunate Futures, a prenatal care coordination nonprofit in Milwaukee, billed Medicaid for services that were never provided and falsified documentation to support fraudulent claims.

Prosecutors allege Fortunate Futures submitted more than $5 million in Medicaid claims, producing over $4.3 million in improper payments. Specific allegations cited at sentencing include:

• Billing Medicaid for 10 hours of services for a client in September 2021 even though the client had died the previous month.
• Submitting claims for services to a woman who was infertile.
• Falsifying paperwork and submitting fraudulent bills to obtain Medicaid payments.

Howard pleaded guilty to one count of felony health care fraud and agreed to forfeit $4.3 million. He will face three years of supervised release after completing his prison term and was ordered to report to prison in July 2027. At sentencing, U.S. District Judge Lynn Adelman described the scheme as "pretty brazen," questioned where the money went, and characterized the conduct as "very serious."

Context: problems in the PNCC industry

• For prosecutors: The case shows federal authorities continue to pursue health care fraud tied to PNCCs and to seek forfeiture of amounts alleged to be improperly paid by Medicaid.
• For providers and nonprofits: The sentencing reinforces the legal and financial risk of improper billing practices and falsified records, and the potential for audits to trigger criminal prosecutions.
• For policymakers and funders: The case highlights vulnerabilities in Medicaid billing for prenatal coordination services and the need for stronger controls to prevent misuse of public funds.

Howard's sentencing closes one criminal case tied to Fortunate Futures but is part of a wider enforcement wave targeting fraudulent billing practices in prenatal care coordination. The court imposed prison time, forfeiture of the money prosecutors say was stolen, and supervised release to follow incarceration.