Minnesota Medicaid Fraud Schemes Uncovered: 14 Programs Flagged

Fri Dec 19 2025 03:57:16 GMT+0200 (Eastern European Standard Time)

At least 14 state-run programs in Minnesota are implicated in massive Medicaid fraud, with charges filed against defendants exploiting taxpayer funds. U.S. Attorney highlights the scope and severity of the issue.

Minnesota's Medicaid system faces serious allegations of fraud as U.S. Attorney Joe Thompson reveals that 14 state-run programs have been flagged. Recent investigations have led to new charges against multiple defendants accused of defrauding programs intended to assist vulnerable populations. Some defendants have allegedly misappropriated large sums and used them for personal gain, raising concerns about the integrity of Medicaid services in the state.

MINNEAPOLIS (AP) — At least 14 state-run programs in Minnesota have been flagged for fraud, a prosecutor said Thursday as he announced new charges in several schemes.

First Assistant U.S. Attorney Joe Thompson stated during a news conference that federal officials suspect a substantial portion of the estimated $18 billion disbursed by Medicaid to Minnesota programs was fraudulent.

“What we see in Minnesota is not merely a handful of bad actors committing crimes,” Thompson asserted. “It’s swamping Minnesota.”

Recent findings might strengthen former President Donald Trump’s claims that Minnesota is a “hub of fraudulent money laundering activity,” a statement targeted at the administration of Gov. Tim Walz, who was a Democratic vice presidential nominee in last year’s elections.

Trump has utilized the fraud allegations to criticize the Somali communities in Minnesota, labeling them negatively and expressing opposition to immigration from East African countries.

Thompson clarified that the flagged programs suffered significant fraud issues, with multiple defendants allegedly drawing funds from various Medicaid sources.

New charges have been initiated against five individuals linked to a housing services fraud case, with prosecutors claiming that two individuals diverted $750,000 away from assisting Medicaid applicants in securing stable housing. These funds were reportedly used for extravagant travel to destinations like London, Istanbul, and Dubai.

One defendant has been accused of submitting $1.4 million in fraudulent claims, reportedly utilizing part of the funds to buy cryptocurrency before fleeing the country upon receiving a subpoena.

The new defendants join a previous group of eight charged in September for their involvement in a scheme targeting the Minnesota Housing Stability Services Program. Additionally, another new defendant has been identified for allegedly defrauding a federally funded program aimed at assisting children with autism, submitting millions of dollars in false claims.

Thompson remarked that Minnesota stands out due to the overwhelming scale of these frauds, with alarming tendencies among claims submitted by providers. He held the state partly responsible for insufficient oversight and management of these programs, emphasizing the real impact on legitimate services for vulnerable populations.

“There are real patients, real clients, real people who need services and aren’t getting them,” Thompson lamented.