Iowa's new Medicaid company hires lobbyist who admitted 'theft of fees' from law firm

Iowa's new Medicaid company has hired a lobbyist who admitted to "theft of fees" from the law firm he was working for and "misappropriation of client funds" from at least two lobbying groups.

Craig Schoenfeld, a lobbyist for Centene's Iowa Total Care, voluntarily consented to disbarment five years ago while under investigation by the Iowa Supreme Court.

Schoenfeld was not criminally prosecuted for theft of fees because his former law firm did not pursue charges, court documents show.

Schoenfeld had diverted invoices from the West Des Moines law firm where he worked to his personal consulting firm, depriving his law firm of about $1,050 in compensation.

He also billed an unidentified organization about $20,000 in additional research services that should have been covered as part of its original retainer fees, according to his signed affidavit.

He repaid the money but deprived the client of use of the funds for four months, the affidavit states.

Schoenfeld no longer works for the Wasker, Door, Wimmer & Marcouiller Law Firm and was removed as a lobbyist from all 21 organizations he represented when he gave up his law license in 2013, state records show. 

He is now president of CR3 Connect, a Clive business he started in 2014 that bills itself as one of "Iowa's leading strategic advocacy and lobbying firms." In addition to Centene, he is listed as the lobbyist for Iowa Growth Project and Valero Energy Corp.

Schoenfeld declined to comment, but his attorney, Mark Weinhardt, issued a statement:

"Craig’s previous work in the healthcare field, as well as his knowledge and experience in legislative and regulatory matters, is valuable and well-known," Weinhardt said. "A number of companies have recognized this value and have retained Craig to help them work through the intricacies of government as their representative.”

Schoenfeld was hired by Iowa Total Care, a subsidiary of Centene, in November 2017 but had not been paid anything as a lobbyist for the company through the fiscal year that ended June 30, according to reports filed by Schoenfeld and Centene with the Iowa Legislature.

In July, Iowa Total Care will join two other companies — UnitedHealthcare and Amerigroup — in managing the state’s $5 billion Medicaid program, which provides care for 600,000 poor and disabled Iowans.

Gov. Kim Reynolds and Iowa Department of Human Services Director Jerry Foxhoven did not immediately respond to questions about whether Schoenfeld's professional history would be an issue.

Centene spokeswoman Marcela Manjarrez Hawn acknowledged the Register's inquiry but did not respond to questions about whether the company was aware of Schoenfeld's past.

It's unclear if Schoenfeld helped assist Centene in writing the bid submitted to the Department of Human Services in February.

He recently traveled with company executives around the state advocating for the company and its work, said Sen. Pam Jochum, D-Dubuque who has been critical of the state's use of for-profit companies to manage Medicaid.

“To me, it just casts one more dark shadow over the whole process and Centene’s presence in Iowa,” Jochum said about Schoenfeld's work history and current position.