Sartell Business Owner Pleads Guilty To $9 Million Lending Fraud Scheme

Sartell Business Owner Pleads Guilty To $9 Million Lending Fraud Scheme

A Sartell woman, Adelle Starin, 40, has admitted to a wire fraud charge related to a scheme defrauding lenders out of more than $9 million, U.S. Attorney Andrew M. Luger announced. According to court documents, Starin, who owned a Minnesota based retail business named Baby’s on Broadway dealing in baby products and toys, submitted several false reimbursement claims to TRICARE, the U.S. Department of Defense Military Health System's healthcare program.

As TRICARE eventually caught on to her fraudulent activities, rejecting Starin's false claims, "Starin expanded her scheme to bring other sources of revenue into her company," said U.S. Attorney Luger. To continue funding her operations despite reduced inflows from the healthcare program, Starin concocted another entity, Sunshine Medical LLC, which she used to deceive two lending companies—Liquid Capital Enterprises Corp. and Slope Tech. Inc.—into believing that she needed additional financing to purchase inventory.

The deceit was carried out through the creation of fake invoices from the fictitious Sunshine Medical LLC, which Starin presented as evidence of business operation and revenue. Despite the fabricated nature of these documents, Starin managed to secure wire communications in interstate commerce, and with these false representations, she successfully obtained exceeding $9 million from the lenders. Starin's scheme was eventually exposed, leading to her guilty plea in U.S. District Court before Judge Jeffrey Bryan on December 19.

The investigation leading to the charges against Starin was conducted by agencies including the FBI, the U.S. Department of Defense’s Defense Criminal Investigative Service, and the Defense Health Agency Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Daniel W. Bobier. A sentencing hearing for Starin, who is currently released on bail, is expected to be scheduled in the future.

SOURCE: hoodline