AUGUSTA — Maine Republicans called for accountability Tuesday in the case of Gateway Community Services, a Portland health care provider that had its state MaineCare payments suspended last week on suspicion of fraud after it was accused of falsifying billing records.
“We want answers, and as we’re going into another supplemental budget, we want this fraud addressed and we want some fiscal responsibility,” House Minority Leader Rep. Billy Bob Faulkingham, R-Winter Harbor, said during a State House news conference.
Republican leaders called for state officials to investigate the allegations against Gateway, which provides services for people with disabilities, and ensure that taxpayer funds are spent appropriately.
The Maine Department of Health and Human Services said last week that it referred the case to the Office of the Maine Attorney General for investigation after it identified a “credible allegation of fraud” related to billing for services that were either not rendered or not eligible for coverage.
The suspension of payments and referral came after a former employee accused Gateway of falsifying billing records in order to boost MaineCare payments and as DHHS said it found more than $1.6 million in MaineCare overpayments to Gateway via state audits dating to 2015.
A spokesperson for the attorney general’s office said Tuesday that she could not comment on whether an investigation on the fraud allegation is underway, and if so what the timeline is.
The Gateway case comes amid similar allegations of social services fraud involving people with ties to the Somali American community in Minnesota. Dozens of people were convicted recently in a $250 million fraud scheme involving a child nutrition program.
Federal officials said this week they are also looking into allegations focused on child care centers in Minnesota after a YouTube content creator claimed in a viral video that he had found widespread fraud at Somali-run child care centers.
Abdullahi Ali, one of the founders and the CEO of Gateway Community Services, is a Somali American who ran for office in Jubaland, a state in his home country, last year. The organization employs and serves immigrants as well as non-immigrants.
Republican leaders in Maine on Tuesday drew parallels with the cases in Minnesota. Asked by a reporter whether the Gateway case is an example of “one or two bad actors” or if it is more broadly indicative of actions by Somali Americans in the United States, Senate Minority Leader Trey Stewart, R-Presque Isle, said he believes “more and more systemic fraud” is likely to come to light.
“It has nothing to do with certain populations, unless and until it does,” Stewart said. “I think that’s what we’re seeing play out in Minnesota, is that there’s a strong (correlation) there. We should be looking to see if there’s a strong correlation here in Maine as well.”
Gateway has previously denied the allegations that it falsified billing records and has said it is seeking more information from the state on its fraud claim. In a statement Tuesday, the agency accused Republicans of weaponizing the allegations for political gain.
“Today’s press conference provides vivid proof that the conclusory allegations referenced against Gateway are being used as a wedge issue in a high-stakes election year,” the provider said. “Gateway stands by its responses to these allegations and will continue to cooperate with oversight agencies, as it has done.”
Republicans on Tuesday also said they will ask House Speaker Ryan Fecteau, D-Biddeford, to remove Rep. Deqa Dhalac, a South Portland Democrat, from the Legislature’s budget committee after Dhalac was named in a letter from a top Republican in the U.S. House seeking information pertinent to an investigation of fraud in Minnesota.
Dhalac, who is originally from Somalia, previously worked as assistant executive director at Gateway Community Services Maine, a nonprofit that is a sister organization to Gateway Community Services, the limited liability company that is the target of the fraud allegations.
A spokesperson for the LLC said on Tuesday that the nonprofit is not involved in the LLC’s MaineCare billing and that he could think of “no reason” why the nonprofit would be investigated.
In a statement Tuesday, Dhalac said she worked for the nonprofit for less than one year and was not involved in Gateway billing practices.
“Any accusations that I participated in illegal activities aren’t just unequivocally false — they are also reckless and harmful,” Dhalac said. “I take seriously the state’s responsibility to serve as a good steward of taxpayer dollars, and I support the investigation to hold accountable any individuals who misuse public funds.”
In a joint statement, Fecteau and Senate President Mattie Daughtry, D-Brunswick, said any allegations of abuse of public funds should be taken seriously and monitored by the Legislature.
“At the same time, we are mindful of the broader national climate and the impact of dangerous rhetoric about immigrant and Muslim communities — including Somali Americans,” the Democratic leaders said. “That context underscores why investigations must be grounded in evidence, clear standards, and due process, not politics or assumptions. The Legislature will take any findings seriously and consider what steps may be needed to strengthen accountability.”
