By: Christine Souders
A local non-profit serving people with disabilities, is under the federal government's microscope.
Community Care Incorporated out of DeWitt, Iowa is being investigated for potential Medicaid fraud.
Last week the federal government and several other agencies showed up at CCI's surrounding locations with subpoenas and search warrants.
"They came in, pulled some documents, made some images of our computers, and at the time we learned that community care was being investigated for potential Medicaid fraud," said David Pillers, Board of Directors of VP.
Wednesday, the Board of Directors fired seven members of their staff, including the chief executive officer, and chief of operations for the bills in question.
"Had we not done that, we would not of had funding, so that was a necessary step to keep the operation ongoing, and to insure that we provide for the individuals we serve," said Pillers.
The Iowa Medicaid Enterprise and Iowa Department of Human Services run the Medicaid program in Iowa.
DHS told CBS 4 when a non profit is under investigation, they typically shut them down.
A spokesperson said they allowed CCI to stay open, if they replaced staff with new management; still cutting their funding by 35 percent.
A former CCI employee and other DeWitt residents are shocked about the investigation, and concerned about the people they serve.
"It was a joy seeing them every day, and I can't imagine stealing from them," said Samantha Strodtman, a Former CCI Employee.
"A lot of people on this organization. Who else would take care of them," said Leo Fier, DeWitt Resident.
The Board said what's most important is that their clients don't feel the repercussions.
CCI serves more than 300 people with disabilities.
The Board said they don't know how long the investigation will last, but the board wants to assure patients they will continue to provide services even with less funding.