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A Minnesota Medicaid-funded home care operator who once touted his climb from bankruptcy to multimillion-dollar businesses is under investigation by state officials over allegations that his companies failed to provide services they were paid to deliver to vulnerable clients.
Arnold Kubei, who came to the United States in 2007 as an asylee from Cameroon, went bankrupt in 2014 after a failed investment in a gas station, according to an interview he gave to a local media outlet in 2022. By 2021, however, Kubei was running a pair of home care businesses that he told the outlet had brought in a total of $3.7 million that year.
Now, the Minnesota Department of Human Services has suspended Kubei’s license to provide home and community-based services as it investigates allegations that he was failing to render the services the state was paying him…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.