Steven John Caplan, 31, and Kayla Marie Earls, 35, both of Harrison, were arraigned before Judge Lisa Babcock of the 54B District Court in East Lansing for alleged transportation fraud involving the Medicaid program, Michigan Attorney General Dana Nessel announced on Apr. 29.
The case involves allegations that Caplan and Earls used a smartphone app to submit false reimbursement requests for trips to medical appointments that never occurred. According to the announcement, another app was used to make it appear as though their phone had traveled when it had not. The Michigan Department of Health and Human Services Office of Inspector General referred the matter to the Department of Attorney General.
Caplan faces one count of conducting a continuing criminal enterprise (a felony punishable by up to 20 years), one count of Medicaid fraud–conspiracy (a felony punishable by up to 10 years), and ten counts of Medicaid fraud–false claim (each a four-year felony). Earls is charged with one count each of Medicaid fraud–conspiracy and Medicaid fraud–false claim.
Nessel said, “Medicaid dollars provide essential care for Michiganders, and my office will not tolerate those who defraud the system. I want to again thank DHHS-OIG and the Clare County Sheriff’s Office for their partnership in investigating this matter. We will continue to hold accountable individuals who steal from taxpayers and divert funds away from the residents who need them most.”
Caplan received a $100,000 cash/surety bond while Earls received a $10,000 cash/surety bond. Both are scheduled for a probable cause conference at the same court on May 8.
The Attorney General’s Health Care Fraud Division is handling prosecution as Michigan’s federally certified Medicaid Fraud Control Unit. It receives most funding from the U.S. Department of Health and Human Services through an award totaling $5,517,524 for fiscal year 2026; state funds cover an additional $1,839,170.
Authorities remind readers that all charges are allegations at this stage; defendants are presumed innocent unless proven guilty.