Underwood Woman Faces 2 Felonies in Benefits Case

Underwood (trfnews.i234.me) — An Underwood woman faces two felony charges involving Minnesota Medical Assistance benefits.

Denise Carol Harms, 67, is charged with felony perjury and felony theft by false representation.

Prosecutors allege unreported income resulted in more than $15,000 in Medical Assistance overpayments.

The case is filed in Otter Tail County District Court as 56-CR-26-1668.

Renewal Form Questioned

According to the complaint, Harms submitted a Minnesota Health Care Programs renewal form in January 2024.

Prosecutors say Harms reported that no household member had income from work or other sources.

Harms signed the form under penalty of perjury on January 17, 2024.

The document also required recipients to report changes to listed information, according to the complaint.

Prosecutors allege Harms failed to report income she received for providing childcare.

Investigators later reviewed financial records, including payments made through Venmo.

The complaint says those records showed daycare-related income dating back to 2023.

Harms spoke with a fraud investigator by telephone in August 2025.

She reportedly said she received Social Security and earned some money from babysitting.

Harms allegedly estimated that she earned about $400 each week from childcare.

She told the investigator that much of the money went toward groceries for the children.

Harms also acknowledged that she had not reported the babysitting income, according to prosecutors.

She reportedly said she did not realize she was enrolled in a social services program.

She also said she did not understand her income reporting responsibilities.

Investigators reviewed Harms’ eligibility file after identifying the alleged unreported income.

The complaint says she received $15,324.30 in Medical Assistance overpayments.

The alleged overpayments occurred between March 2024 and September 2025.

The theft charge carries a maximum sentence of 10 years in prison.

It also carries a possible fine of up to $20,000.

The perjury charge carries up to five years in prison and a possible $10,000 fine.

Readers can review Minnesota Statute 609.48 regarding perjury.

The state’s theft law is available under Minnesota Statute 609.52.

More court information is available through the Minnesota Judicial Branch.

The charges are allegations and have not been proven in court.

Harms is presumed innocent unless proven guilty.

I’m Adrian Cole reporting for TRF News.