FBI raids homes of Charlotte activist in health care fraud investigation from the Hill Abby Mittower

CHARLOTTE, N.C. (QUEEN CITY NEWS) — The FBI raided the home of Cedric Dean, a well-known community activist in Charlotte’s Palisades neighborhood, on Thursday.

The search is part of a federal investigation into an alleged multi-million dollar health care fraud scheme, according to federal court documents released to Queen City News.

A spokesperson for the FBI confirmed on Thursday that agents were “engaged in court-authorized investigative activity,” but did not offer further details.

Court documents obtained by QCN reveal that Dean and his company, Cedric Dean Holdings, are accused of fraudulently billing Medicaid for mental health services that were never provided. Investigators said Dean targeted vulnerable people, including those experiencing homelessness, in exchange for their Medicaid information, offering food or temporary shelter in return.

Dean allegedly submitted inflated or false claims to Medicaid, sometimes using fake diagnoses, and paid staff and recruiters through services like CashApp. Authorities said his company billed roughly $1 million per month and operated without enough staff to actually provide care.

Federal officials have seized his bank accounts, vehicles, including two RVs and luxury SUVs, and multiple properties in Charlotte and Shelby, that they said were purchased with fraud earnings.

Dean, founder and CEO of the HELP Program, has not been formally charged as of Thursday afternoon. The forfeiture case seeks to claim his assets as part of the ongoing investigation.

Neighbors along McChesney Drive, one of his properties in Charlotte, often wondered what was happening at 5501 McChesney Drive.

“There were always so many cars in the driveway,” said one neighbor.

“We just are here to make sure that it’s safe and that we’re comfortable living here and all that. And when all those people were coming and going and the moving trucks were coming and going and bringing things and leaving, then we just kind of kept our eye on the house,” said another neighbor.

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According to federal documents, investigators accuse Dean and his company, Cedric Dean Holdings, of running a Medicaid fraud scheme that started roughly last September.

Documents obtained by Queen City News claim Dean’s group targeted vulnerable homeless people at shelters and other places. Dean allegedly offered small payments, offered free food, and even housing in exchange for their Medicaid numbers.

“It was a little surprising to see the FBI and a lot of assault weapons. But, you know, other than that, that was the biggest surprise,” one neighbor said. 

But this isn’t the first time Dean has been involved with law enforcement. His criminal record dates back to the 1980s, including a two-decade federal prison sentence on a cocaine conviction. Dean’s also accused of forcing his way into a woman’s apartment last May, with police stating his past criminal charges of assault, armed robbery, and kidnapping.

“We always gave him the benefit of the doubt when he moved in, thinking that he was helping people,” one neighbor said. 

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