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Wiener




*January 16, 2026*






MN Fraud Monitor - December in Review

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Welcome to the MN Fraud Monitor Newsletter. December was a month in which Minnesota’s fraud and oversight challenges escalated from a pressing statewide issue into a relentless stream of daily national media headlines, ultimately prompting direct federal intervention through expanded program intervention and, by month’s end, boots-on-the-ground investigative operations.

"Here’s how the month unfolded:"

 

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"*Timeline of Notable Events*"

 

*Early December: Social Media Allegations Gain National Attention*

In early December, an X account run by current and former DHS employees went viral and drew national attention for posts alleging internal agency retaliation for raising fraud concerns and ultimately cast blame for the fraud crisis at the Governor’s office. (1 [ [link removed] ])(2 [ [link removed] ])

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*Dec. 3: DHS freezes 245D group home licenses*

On Dec. 3, DHS moved to freeze new 245D group home licenses for two years. DHS later described the licensing pause as a response to unprecedented growth in new applications and said the intent was to focus on improving oversight of existing providers. (3 [ [link removed] ])(4 [ [link removed] ])(7 [ [link removed] ])

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*Dec. 16: DHS Pauses Adult Day Center Licensing*

On Dec. 16—immediately ahead of the Committee’s Dec. 17 hearing—DHS announced a two-year pause on licensing for adult day centers, describing it as likely running Feb. 1, 2026, through Jan. 31, 2028. DHS stated the pause would free resources to focus oversight on existing providers and cited provider capacity exceeding need in the high-risk Medicaid program. (5 [ [link removed] ])(6 [ [link removed] ])

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*Dec. 17: Fraud Committee Hearing Revelations and Disagreements Center on Trust*

The Committee’s Dec. 17 hearing covered assisted living and adult day oversight. The hearing notably concluded with Chair Kristin Robbins walking the Committee through a “web” of individuals and their various entities receiving state/federal payments. The web identified multiple Medicaid programs (including Non-Emergency Medical Transportation, adult day services, and autism-related services, among others) that certain individuals appeared to be receiving payments across simultaneously, outlined shared brokerage services, mapped relationships across entities, and highlighted (1 [ [link removed] ]) an indicted Feeding Our Future defendant still receiving state payments based on publicly available payment data, and (2 [ [link removed] ]) an additional individual flagged for unusual out-of-state/out-of-country indicators. (8 [ [link removed] ])(9 [ [link removed] ])(10 [ [link removed] ])

That walkthrough prompted questions and concerns from DHS and DFL Committee members about withholding actionable details that could be used for investigations. Chair Robbins’ response centered on a basic trust and accountability gap, stating that whistleblowers “have expressed fears of retaliation through internal channels,” and emphasizing that protecting them sometimes requires keeping information out of the same agency pipelines until a safer handoff path is established. (8 [ [link removed] ])(9 [ [link removed] ])

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*Dec. 18 US Attorney’s Office Press Conference*

On Dec. 18, federal authorities announced additional defendants tied to Medicaid-funded schemes (including autism-related services and Housing Stabilization Services activity) and disclosed a search warrant connected to Integrated Community Services (ICS).

The same day, the U.S. Attorney’s Office press conference reframed the month’s scope. U.S. Attorney Joe Thompson described an “industrial scale” fraud environment, advancing the estimate that suspected fraud exposure tied to 14 high-risk Medicaid service categories could plausibly exceed $9 billion. Thompson also introduced the term “"fraud tourism",” explaining it as a situation where “weak controls and high-dollar opportunity can attract out-of-area exploitation.” (11 [ [link removed] ])(12 [ [link removed] ])

Minnesota Attorney General Keith Ellison issued a statement praising the federal charges and referencing joint work through the Medicaid Fraud Control Unit. (13 [ [link removed] ])

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*Dec. 26–31: Viral Accelerant; National Microscope; Federal Intervention*

Content creator Nick Shirley became a household name after Christmas when he posted videos visiting daycares around the Twin Cities showing no children and minimal ability to speak with staff or owners at the respective businesses. The videos rapidly gained over 100 million views on X and - following subsequent media and state agency follow-ups to the locations - magnified the microscope on Minnesota. (14 [ [link removed] ])

In the viral fallout, conflicting claims emerged about the operational status of the centers at the time of filming versus afterward, prompting swift investigations. National commentators, state officials, local reporting, and statements made by daycare owners did little to objectively clarify the facts. Competing information, allegations, and narratives largely muddied the facts and veracity of the original video, ultimately establishing new national narrative battlelines along largely partisan lines. (15 [ [link removed] ])

The week culminated in visible federal enforcement escalation. On Dec. 29, U.S. Secretary of Homeland Security Kristi Noem announced that Homeland Security agents were in Minneapolis conducting a “massive investigation” related to childcare and fraud allegations. DHS officials confirmed to media that Homeland Security Investigations (HSI) expected to inspect more than 30 sites in a single day. (15 [ [link removed] ])(16 [ [link removed] ]) By Dec. 31, federal officials tightened childcare payment requirements nationwide, including pauses in higher-scrutiny cases pending submission of administrative data and additional records such as attendance and licensing/inspection documentation. (17 [ [link removed] ])

By month’s end, the U.S. House Oversight Committee announced a January hearing focused on fraud and misuse of federal funds in Minnesota. (18 [ [link removed] ])

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*Closing*

Fraud in Minnesota meant something different to most of us on December 1st than it did on December 31st. The month was a cascade of revelations, including but not limited to: viral videos and posts leading to federal intervention and national attention; the clear identification of foundational disagreements about how best to understand and address the fraud crisis; explosive projections from Joe Thompson about the scale and brazenness of fraud; and an ambiguous but persistent intervention of the federal government into Minnesota.

As the scale and dimensions of fraud in Minnesota have grown, so has the emphasis on information/opinion variances. There is space to disagree, but my hope is to focus on what the state needs: systemic reforms that transcend partisan divides—robust data-sharing protocols, independent audits, incentives for early detection/reporting, trust, and accountability (to name a few).  

At a time when communities need new water treatment plants, property taxes are out of control, Minnesota’s infrastructure requires major investment, childcare costs are becoming unbearable, mental health resources are scarce, and health care costs put access at risk, Minnesota’s leadership continues to raise taxes and increase spending. Strong fraud safeguards and oversight could have put us on a better, more sustainable path. Fraud within our departments must be addressed, and that only happens with new department leadership, a new culture, real accountability, and continued partnerships with everyone involved in delivering services to Minnesotans. 

If you have friends, family, or neighbors that want to stay informed, please share this email and have them sign up for the MN Fraud Monitor by clicking the link below: MNfraud.com [ [link removed] ]

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*Bibliography*


* Center of the American Experiment (Dec. 1, 2025) – “The Fraud Next Time” (@Minnesota_DHS suspension): [link removed] [ [link removed] ]
* Denver Gazette / Wire Services (Nov. 30, 2025) – DHS employees’ X allegations: [link removed] [ [link removed] ]
* MPR News (Dec. 3, 2025) – 245D licensing freeze reporting: [link removed] [ [link removed] ]
* Minnesota DHS (Dec. 9, 2025) – Licensing pause rationale: [link removed] [ [link removed] ]
* Minnesota DHS (Dec. 16, 2025) – Adult day center licensing pause announcement: [link removed] [ [link removed] ]
* MPR News (Dec. 16, 2025) – Adult day licensing pause reporting: [link removed] [ [link removed] ]
* League of Minnesota Cities (Dec. 22, 2025) – DHS to pause new 245D Home and Community-Based Services licenses: [link removed] [ [link removed] ]
* KTTC (Dec. 18, 2025) – Fraud Committee hearing coverage / procedural dispute capsule: [link removed] [ [link removed] ]
* KSTP (Dec. 17, 2025) – Whistleblower tip routing dispute: [link removed] [ [link removed] ]
* Minnesota Reformer (Dec. 17, 2025) – “Web” walkthrough / FOF-related payment reference: [link removed] [ [link removed] ]
* Minnesota Reformer (Dec. 18, 2025) – Joe Thompson press conference; “fraud tourism”; $9B framing: [link removed] [ [link removed] ]
* Associated Press (Dec. 18, 2025) – “Industrial-scale” fraud across 14 programs: [link removed] [ [link removed] ]
* Minnesota Attorney General (Dec. 18, 2025) – Statement praising federal charges: [link removed] [ [link removed] ]
* Axios (Dec. 29, 2025) – Nick Shirley reach and storyline: [link removed] [ [link removed] ]
* CBS News (Dec. 29, 2025) – Daycare investigations / operational claims: [link removed] [ [link removed] ]
* Associated Press (Jan. 7, 2026) – DHS/ICE/HSI operational claims: [link removed] [ [link removed] ]
* Reuters (Dec. 31, 2025) – Federal child care payment pauses and scrutiny: [link removed] [ [link removed] ]
* U.S. House Oversight Committee (Dec. 31, 2025) – January hearing announcement: [link removed] [ [link removed] ]

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Report Fraud!

Minnesota has lost an estimated $2 billion to fraud, money meant to help vulnerable Minnesotans and fund your top priorities. We can’t afford to let it continue. If you’ve seen or experienced fraud in state programs, make a confidential report at MNFraud.com [ [link removed] ] and help us protect taxpayer dollars.








Please Contact Me

It’s an honor and privilege to work for you at the Capitol. Don’t hesitate to contact my office at any time this session to share your thoughts, concerns or ideas. I am here to serve you!

Have a great day,

Mike











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/Rep





2319 Centennial Office Building
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Saint Paul, MN 55155
651.296.4293







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