MINNEAPOLIS (AP) — At least 14 state-run programs in Minnesota have been flagged for fraud, a prosecutor said Thursday as he announced new charges in several schemes. First Assistant U.S. Attorney Joe Thompson revealed during a news conference that federal officials suspect a significant portion of around $18 billion disbursed via Medicaid to Minnesota programs was fraudulent. “What we see in Minnesota is not a handful of bad actors committing crimes,” Thompson stated. “It’s swamping Minnesota.” These revelations could bolster former President Donald Trump's claims that Minnesota is a major center for fraudulent activities under Governor Tim Walz, especially targeting the Somalian community. Trump has labeled these individuals derogatorily while expressing his wish to reduce immigration from countries like Somalia.
Thompson noted that the fraud is extensive, with multiple defendants receiving money from various Medicaid programs. Recent investigations have led to five new charges related to a Minnesota housing services fraud case, where two individuals improperly pocketed $750,000 intended for assisting Medicaid recipients. Allegations suggest they used the funds to travel to locations such as London and Dubai.
Moreover, another defendant reportedly submitted $1.4 million in fraudulent claims and fled the country after receiving a subpoena. Prosecutors have also charged an additional defendant associated with another state-funded program designed to help children with autism, indicating a pervasive problem in multiple areas of the Medicaid system.
“This is not just a few bad programs,” Thompson warned. “The scale of fraud in Minnesota is larger than in any other state, indicating a systemic issue that requires immediate attention.” He argued that the state has failed to oversee these programs effectively, jeopardizing access to essential services for those genuinely in need.
Thompson noted that the fraud is extensive, with multiple defendants receiving money from various Medicaid programs. Recent investigations have led to five new charges related to a Minnesota housing services fraud case, where two individuals improperly pocketed $750,000 intended for assisting Medicaid recipients. Allegations suggest they used the funds to travel to locations such as London and Dubai.
Moreover, another defendant reportedly submitted $1.4 million in fraudulent claims and fled the country after receiving a subpoena. Prosecutors have also charged an additional defendant associated with another state-funded program designed to help children with autism, indicating a pervasive problem in multiple areas of the Medicaid system.
“This is not just a few bad programs,” Thompson warned. “The scale of fraud in Minnesota is larger than in any other state, indicating a systemic issue that requires immediate attention.” He argued that the state has failed to oversee these programs effectively, jeopardizing access to essential services for those genuinely in need.
