Federal authorities in Minnesota have announced new charges in a massive fraud scandal that has been ongoing since 2020, involving widespread billing for government services. First Assistant U.S. Attorney Joe Thompson said the scope of the crisis is more extensive than previously reported.
Thirteen programs have been identified as containing fraud, with $18 billion spent by taxpayers since 2018. While some reports suggest around $1 billion may be fraudulent, Thompson believes it could be twice that amount when investigations are completed.
Six new defendants have been charged in connection with a Minnesota housing services fraud scheme, which allegedly involved pocketing millions of dollars meant for Medicaid recipients and using the funds to purchase luxury items abroad. Two dependents were accused of sending significant sums overseas to Kenya.
Thompson described the schemes as “industrial-scale” and said they involve companies providing little to no service in exchange for reimbursement from government programs. The investigation highlights a lack of oversight, with some individuals finding it easy to exploit the system.
The Trump administration has launched efforts to crack down on the fraud at a federal level, and local Republicans have called for Minnesota’s elected officials to take action. First Assistant U.S. Attorney Joe Thompson emphasized the need for swift action to stop the scandal in its tracks.
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Source: https://www.foxnews.com/politics/magnitude-cannot-overstated-feds-say-minnesota-fraud-may-more-than-9b