Fraud Unveiled in Minnesota's Medicaid Programs: 14 Programs Flagged

Fri Dec 19 2025 05:09:45 GMT+0200 (Eastern European Standard Time)

New charges expose extensive fraud in Minnesota's Medicaid programs, affecting essential services for vulnerable communities.

Federal investigators have uncovered widespread fraud involving at least 14 state-run Medicaid programs in Minnesota. Significant amounts, potentially up to $18 billion, are suspected to be linked to fraudulent activities. As the fraud poses risks to rightful beneficiaries, five new defendants have been charged in relation to fraudulent housing services schemes. Authorities express concern over the implications this has for both state integrity and the delivery of crucial services to genuine recipients.

MINNEAPOLIS – Federal prosecutors revealed significant fraud within Minnesota's Medicaid programs, flagging at least 14 state-run initiatives. New charges were announced concerning various schemes where individuals exploited these programs, casting a shadow over the integrity of the state's safety net meant for its most vulnerable residents.

First Assistant U.S. Attorney Joe Thompson indicated that authorities suspect a large part of the estimated $18 billion disbursed by Medicaid in Minnesota could have been fraudulent. “What we see is not a handful of bad actors, but a systemic problem that is swamping Minnesota,” Thompson stated at a press conference.

This revelation has been utilized politically, with former President Donald Trump labeling Minnesota as a hub of fraudulent money laundering activity under the administration of Governor Tim Walz, a prominent Democratic figure.

Thompson mentioned that among the newly charged defendants in the state are individuals implicated in a housing services fraud where they misappropriated around $750,000 meant for helping Medicaid recipients secure stable housing. Instead, they enjoyed luxury travels internationally, visiting cities like London and Dubai.

Alarmingly, one defendant was reported to have submitted claims totaling over $1.4 million for services never rendered, even converting some of the funds to cryptocurrency before fleeing the country upon receiving a subpoena.

This marks the latest development in a broader pattern of Medicaid fraud cases in Minnesota, where recent findings suggest an alarming prevalence of illicit activity overshadowing legitimate services.

As the situation unfolds, Thompson noted that this systemic fraud not only damages the integrity of state programs but also directly endangers the delivery of vital services to real clients who truly require them. This ongoing issue calls for urgent reforms in program oversight and accountability.