Arnold Kubei had the Champagne, the luxury home and apparently the secret to making millions in Minnesota’s taxpayer-funded health care industry — a secret he was more than happy to share with aspiring entrepreneurs for a five-figure fee.
Now, the self-made Medicaid millionaire who went from bankruptcy to riches may have one more business lesson to offer: What happens when the state pulls the plug?
The Minnesota Department of Human Services (DHS) has ordered the revocation of licenses held by Metro Care Human Services and Home Sweet Home of Minnesota, two companies operated by Kubei that collected a combined $36.2 million in Medicaid and other state-administered payments before coming under investigation for suspected fraud.
The revocation orders, dated Oct. 7 and 8, reveal the businesses have been suspended from participating in Minnesota Health Care Programs for 10 years, effective Oct. 30.
And the bad news doesn’t stop there. Correction orders issued earlier this month document a combined 47 licensing violations at Metro Care residential treatment facilities.
For a businessman who built his public image around mastering Minnesota’s healthcare industry, the state’s latest findings paint a considerably different picture.
From Champagne dreams to revoked licenses
As Alpha News previously reported, Kubei, a Cameroonian immigrant, chronicled his rise from bankruptcy to wealth in promotional videos on the “Immigrant Money” YouTube channel, where the opening jingle proclaims, “Immigrant money, immigrant money. I came from overseas and now I got the money.”
The videos could have been mistaken for an episode of Lifestyles of the Rich and Famous, with a tuxedo-clad Kubei sipping Champagne, showing off his luxury home and explaining how he made his millions in Minnesota’s taxpayer-funded health care industry.
He also offered to share the secrets of his success — for a price.
“If I’m going to start the program from top to bottom, I’m going to charge you $10,000,” Kubei said in a since-deleted video titled, “How to Start a Health Care Company in Minnesota.”
“It’s 10,000 to $15,000 [to] get the license where it needs to be,” he stated.
But while Kubei was promoting his financial success, state regulators were raising serious concerns about the operations behind it.
According to DHS payment records previously obtained by Alpha News, Metro Care Human Services received approximately $28.7 million in taxpayer-funded payments, while Home Sweet Home of Minnesota received approximately $7.5 million.
That’s $36.2 million flowing into the two companies before state enforcement actions disrupted their operations.
Kubei previously defended his lifestyle in an interview with the Star Tribune.
“I have worked hard and I deserve to drink the Champagne,” he told the newspaper, adding that people should instead focus on “how many lives have I saved since I started doing this work.”
The latest state documents, however, raise additional questions about the care clients were receiving.
Four licenses revoked, 10-year Medicaid suspension amid dozens of violations
The new revocation orders include four Metro Care locations across the Twin Cities: intensive residential treatment facilities in Falcon Heights, Inver Grove Heights and West St. Paul, along with a home- and community-based services program in Woodbury.
DHS also documented 47 licensing violations at Metro Care’s Falcon Heights and West St. Paul facilities.
Among the violations, state inspectors identified deficiencies involving treatment plans, client assessments, abuse prevention measures, staff training and supervision, and the handling of clients’ money and property.
Perhaps nothing captured Kubei’s self-promotional style quite like the wall inside his Woodbury headquarters.
As Alpha News exclusively reported last month, a former Metro Care employee provided a photograph showing Kubei’s portrait displayed among prominent historical and cultural figures, including Barack and Michelle Obama, Oprah Winfrey and Muhammad Ali.
“I could not take him seriously,” he told Alpha News, describing Kubei’s placement among the famous figures “as if he was this next great thing.”
But the employee said the problems went well beyond the office decor. In his resignation letter, he offered a particularly memorable assessment of the company.
“Your organization is the New York Jets of IRTS facilities,” he wrote, calling it disorganized, dysfunctional and unprofessional.
Under the revocation orders, Metro Care has the right to appeal the licensing actions within 10 calendar days of receiving the notices.
As for Kubei, who once confidently declared that he had figured out how to succeed in Minnesota’s taxpayer-funded health care industry, whether he can figure out a way back remains to be seen.
Alpha News asked DHS what specifically prompted the 10-year suspension and whether it was connected to the ongoing investigation into suspected Medicaid fraud. The agency declined to provide details.
“We are unable to provide additional information regarding ongoing investigations,” DHS said in a statement to Alpha News. “This is to preserve the integrity of our investigations and deliver the best outcomes for Minnesotan taxpayers and the health of our Medicaid system.”
Alpha News reached out to Kubei for comment, but he did not respond.
Jenna Gloeb
Jenna Gloeb is an Edward R. Murrow Award-winning journalist, media producer, public speaker, and screenwriter. Most recently, she worked as a reporter and on-air host for CCX Media. Jenna is a Minnesota native and resides in the Twin Cities with her husband, son, daughter, and two dogs.
