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Davids
Hello from the State Capitol,
Each week in Minnesota, it seems a new fraud case comes to light, and unfortunately, the amount stolen from Minnesota taxpayers grows more staggering.
Recently, First Assistant U.S. Attorney Joe Thompson revealed new details about the unprecedented fraud scandal currently unraveling in Minnesota, and noted the total likely exceeds $9 billion.
This fraud problem has existed for years, many lawmakers from the inner cities either refused to believe it or refused to investigate it. Fraud is not a partisan issue, as the tax dollars of both Democrats and Republicans are being stolen. We should all be outraged.
Five new defendants involved in the Housing Stabilization Services program, as well as others in the Integrated Community Support and EIDBI (autism support) programs recently received charges.
According to Thompson, $18 billion has been paid out since 2018 to providers across 14 Medicaid provider categories designated as “high risk” by state officials in October, with "half or more" being fraudulent.__
Thompson highlighted a new fraud scheme taking place in Minnesota - fraud tourism - in which individuals from other states come here to establish shell companies solely to exploit our total lack of oversight. He noted two residents of Philadelphia traveled to Minnesota after hearing that the state’s Housing Stabilization Services program was “easy money.”
Evidence was also found of a fraud coverup taking place among employees within the Walz administration. The nonpartisan Office of the Legislative Auditor (OLA), which audits certain divisions in state government, recently analyzed the Behavioral Health Administration within the Department of Human Services and its annual issuance of roughly $200 million in grant funds to mental health and drug and alcohol addiction providers.
It found proof that state employees within the Walz administration were actively and knowingly covering up fraud, stating it is a “systemic” problem – not just one random incident – where multiple DHS employees were in on the charade.
Specifically, the auditor found Behavioral Health Administration employees intentionally misled the Auditor’s investigation, falsified and backdated records, and inappropriately accepted grant applications. In one instance, an employee approved a massive grant for an organization, then quit her job that same week to accept a job with that organization to which she had just authorized the payment.
These findings by the legislative auditor might be the worst revelation of all, as it is proof that an agency was conducting illegal activity and tried to cover it up. This state has a major fraud problem on its hands and the total stolen from taxpayers is growing by the day. Stopping people from scamming the system must be our Number 1 priority when the 2026 legislative session begins.
Have a good weekend,
Greg
2214 Centennial Office Bldg.
658 Cedar Street
St. Paul, MN 55155
651-296-9278
[email protected]
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