Investigation Uncovers Massive Fraud in Minnesota's Medicaid Programs

Fri Dec 19 2025 06:06:33 GMT+0200 (Eastern European Standard Time)

Minnesota's Medicaid programs are under scrutiny after at least 14 state-run initiatives were flagged for fraudulent activities, with claims totaling around $18 billion under investigation. Prosecutors aim to address this growing issue that impacts legitimate services.

Federal prosecutors in Minnesota revealed significant fraud in state-run Medicaid programs, estimating much of the $18 billion paid may be fraudulent. New charges have been filed against individuals involved in housing services fraud and other schemes that exploit vulnerable populations. The investigation highlights systemic issues within the state's oversight of these programs.

MINNEAPOLIS (AP) — Investigators have identified at least 14 state-run programs in Minnesota that are suspected of fraudulent activities, as U.S. Attorneys announced new charges this week. Federal officials estimate that a substantial portion of the $18 billion disbursed through Medicaid to Minnesota programs may be fraudulent.

First Assistant U.S. Attorney Joe Thompson stated in a recent press conference, What we see in Minnesota is not a handful of bad actors committing crimes; it’s a widespread issue swamping the state. He attributed this situation to systemic failings in the monitoring of these programs.

Thompson’s revelations lend credence to concerns raised by past political figures about Minnesota being a prime location for fraudulent exploitation, particularly in programs catering to vulnerable populations, including those requiring housing assistance and autism services.

Among the new charges are five individuals connected to a housing services scheme where two parties embezzled upwards of $750,000, allegedly using the funds for extravagant travel to cities like London and Dubai instead of aiding Medicaid recipients.

Another defendant was noted to have submitted around $1.4 million in fraudulent claims, with his case culminating in a subpoena before he fled the country, signifying the gravity of the schemes.

Thompson emphasized that Minnesota's situation stands out among other states, indicating a disproportionately higher level of suspicious claims for reimbursement. The fraud not only threatens the integrity of state resources but jeopardizes access to essential services for legitimate beneficiaries.

There are real patients and clients who depend on these services and are not receiving what they need due to this fraud, Thompson stressed, urging improved accountability and oversight for these critical programs.