MINNEAPOLIS (AP) — New charges have surfaced against several state-run programs in Minnesota identified as potential fronts for extensive fraud, with accusations indicating that at least 14 Medicaid programs may have been engaged in dubious claims. U.S. Attorney Joe Thompson held a news conference to discuss the ongoing investigations that have flagged an astounding portion of the $18 billion disbursed by Medicaid for potential fraud.
Thompson emphasized that the issue in Minnesota represents a significant crisis rather than just isolated incidents, stating, “What we see in Minnesota is not a handful of bad actors committing crimes; it’s swamping Minnesota.”
These allegations seem to align with claims made by former President Donald Trump, who labeled Minnesota a center for fraudulent activities, particularly targeting the Somalian community. Trump, during his campaign, referred to immigrants from Somalia derogatorily, suggesting they are part of these fraud schemes.
Among the ongoing prosecutions, five new defendants face charges for a housing services fraud ring linked to the Medicaid program. Prosecutors revealed that two defendants reportedly siphoned $750,000 intended for aid to Medicaid clients into personal expenses such as luxurious travels.
One individual reportedly submitted $1.4 million in dishonest claims, enriching himself through cryptocurrency investments before fleeing the United States upon receiving a subpoena. These individuals join eight others previously charged in connection to the Minnesota Housing Stability Services Program.
Additionally, another defendant has been charged for exploiting a state-run program designed to assist children with autism, alleging he submitted false claims amounting to millions for fraudulent Medicaid reimbursements.
Thompson criticized the state for failing to adequately oversee these programs, indicating that the scale of fraud in Minnesota is unparalleled compared to other states, which significantly jeopardizes services for those genuinely in need.
