A former Worcester teacher who allegedly stole $2.7 million by filing false Medicaid claims was arrested Wednesday.
Hellen Kiago, 47, was arrested for routinely over-billing and falsely billing for services that were not authorized.
Massachusetts Attorney General Maura Healey’s office began an investigation after receiving complaints from several of Ms. Kiago’s former employees, alleging misconduct and fraudulent billing practices.
On Sept. 28, a grand jury returned indictments against Ms. Kiago and her company, Lifestream Healthcare Alliance LLC, located at 37 Highland St.
The company also operated in Dracut.
The charges are five counts of Medicaid false claims and one count of larceny over $250 by false pretenses.
The overbilling occurred since at least July 2015, according to the attorney general’s office.
Kiago pleaded not guilty in Worcester Superior Court, and her bail was set at $100,000 cash.
She did not immediately respond to messages seeking comment.
Her company, Lifestream, is among scores of home health agencies that contract with MassHealth to provide such services as nursing care and physical therapy to patients in their homes.
In January, Kiago allegedly transferred $1 million to an account in Kenya. She wired another $500,000 to the Kenyan account two months later.
Her daughter who lives in Kenya, was the one receiving the money.
As of July 28, authorities allegedly found $233,000 in the daughter’s bank account, and an additional $483,000 in two other bank accounts. There was also about $6,000 in her husband’s account.
Kiago will return to court on Dec. 6.