MARSHALL — A Marshall business owner appeared in Lyon County District Court last week on charges of wrongfully obtaining medical assistance.

Thomas Scott Pearcy, 55, was charged with six felony counts of wrongfully obtaining assistance, court records said.

A complaint filled in Lyon County in April alleges that Pearcy did not report all his income on applications for medical assistance between 2019 and 2025. This resulted in an overpayment of about $92,000 worth of medical assistance, the complaint said.

Pearcy is the former owner of the Gambler in Marshall. The criminal complaint alleged Pearcy received income from being self-employed, and that he also owned other properties that were believed to be rental properties. Pearcy was part of a development business after selling the Gambler in 2023, the complaint alleged.

The complaint alleged that Pearcy told police that he didn’t intentionally leave out other income sources, and that he thought his assistance coverage had lapsed by the time police contacted him.

A future hearing date for Pearcy is scheduled in June.

“I can’t discuss any specific details of the criminal case at this time,” Pearcy said in a written statement Monday. “I will provide additional details at a later time after this matter is resolved. I can disclose that after my arraignment on May 14, 2025, I paid cash bail to the Court in the amount of $93,000, which will be applied to pay back all of the alleged overpayments for medical assistance.”

The criminal complaint said Southwest Health and Human Services had contacted Marshall Police in March, regarding a fraud investigation. Pearcy first applied for medical assistance in 2019, and investigators believed he had failed to report multiple income changes since then, the complaint alleged.

The complaint alleged that income tax information from the Minnesota Department of Revenue showed Pearcy’s taxable income was higher than what was reported on medical assistance coverage renewal forms. Filings with the Minnesota Secretary of State’s Office showed Pearcy was affiliated with other businesses over the past five years, including a snow removal business, and a development business in Balaton, the complaint alleged. Lyon County tax records listed businesses affiliated with Pearcy as the owners of multiple properties in Marshall that were purchased between 2019 and 2023, the complaint alleged.

The complaint alleged Pearcy told police that he thought the medical assistance he received would be based only on the income on his W-2 form. He said his not reporting other income was unintentional, the complaint alleged. Pearcy said he also thought his medical assistance coverage had lapsed, the complaint alleged.

Pearcy appeared in Lyon County District Court via Zoom on May 14, court records said.

Bail for Pearcy was set at $93,000 cash or bond without conditions; or release with conditions including that Pearcy abide by laws and stay in Minnesota except for medical appointments in South Dakota.

A future hearing date for Pearcy was set for June 10.