FBI arrests Dauphin County home care business owner after $1 million in Medicaid fraud

The owner of several Dauphin County businesses focusing on healthcare has been arrested — and pleaded guilty — to charges of healthcare and bank fraud.

Ester Mbaya, 43, of Harrisburg, claimed more than $1 million through fraudulent Medicaid claims since 2017, according to the FBI. She also doctored financial documents to apply for a $750,000 line of credit and $125,000 in personal loans.

She could face up to 40 years in prison and a $1.25 million fine, according to the U.S. Attorney’s Office for the Middle District of Pennsylvania.

Mbaya defrauded Medicaid through her home care agency, “Cool Waters, LLC,” which has been a Medicaid provider since 2017, according to the FBI.

The claims included requests for reimbursement for services that were never provided; requests for reimbursement for services that were inflated to reflect more service than was actually provided; and requests for reimbursement for services provided by personal care assistants who were fraudulently represented as eligible and/or available to provide said services when they were not, according to the FBI.

Mbaya submitted Medicaid reimbursement claims that falsely reported that personal assistance services were given to Medicaid recipients, the FBI said.

She also created false records to show that personal assistance services were provided by Cool Waters, LLC, to Medicaid recipients that were not provided, the FBI said. She then manipulated payroll records to prevent the employees listed in those false records from receiving payment, according to the FBI.

Between July and August of 2021, Mbaya used falsified records to apply for loans from Presence Bank, M&T Bank, Members 1st Federal Credit Union and New Cumberland Federal Credit Union, the FBI said.

Mbaya used paychecks from Mission Health, Inc. that had been altered to inflate the amount of income she received. Additionally, she altered her bank statements to make it appear like she had more money on deposit than she did, according to the FBI, for several loan applications:

• On July 13, 2021, Members First Federal Credit Union approved a $50,000 personal loan for Mbaya.
• On Aug. 3, 2021, Presence Bank approved a $750k line of credit to Serenity Blue, LLC, an entity owned and controlled by the defendant.
• On Aug. 10, 2021, New Cumberland Federal Credit Union approved a $25,000 personal loan for Mbaya.
• On Aug. 13, 2021, M&T Bank approved a $50,000 personal loan for Mbaya.

The loans resulted in the following losses:

• $489,069.48 for Presence Bank
• $47,740.60 for M&T Bank
• $49,054.05 for Members First Federal Credit Union

Mbaya’s attempts to get money from New Cumberland Federal Credit Union were unsuccessful, the FBI noted, and the loan was not funded.

Mbaya faces a federal charge of Health Care Fraud and Bank Fraud. Mbaya signed a plea agreement last Thursday before charges were filed last Friday.

The Middle District of Pennsylvania, the federal court district that covers much of central and north-east Pennsylvania, has courthouses in Harrisburg, Williamsport and Scranton. Mbaya is scheduled for arraignment in Scranton later this month.

Mbaya is the president/CEO of Cool Waters Homecare, (Cool Waters, LLC); Executive Director of Mission Health, Inc.; Executive Director of Serenity Blue Dialysis Care, according to her LinkedIn profile. She was featured in numerous news reports when Serenity Blue Dialysis Care opened in 2021.