Baby’s on Broadway Announces Imminent Closing

(KNSI) – Little Falls and St. Cloud retailer Baby’s on Broadway is closing following a guilty plea for a wire fraud charge.

The announcement was made Monday afternoon on the company’s Facebook page. Owner Adelle Starin says in the post that she self-reported the $9 million scheme to U.S. Attorney Andy Luger. She is accused of submitting false claims to TRICARE, the U.S. Department of Defense-run military healthcare. When TRICARE caught on, it began rejecting the claims. In response, Starin and Baby’s on Broadway allegedly created a made-up company called Sunshine Medical. She is accused of going to two lenders looking for loans to buy inventory for Baby’s on Broadway from this fake business. She submitted invoices allegedly showing a relationship between Baby’s on Broadway and Sunshine. They advanced millions to her based on those fraudulent invoices.

In the post, Starin takes full responsibility for the illegal scheme, calling her staff amazing and asking people to show them grace. No final day for business was given, but she expects things to be wrapped up in a matter of weeks.

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