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At least 14 state-run programs 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 said during a news conference that federal authorities suspect a significant portion of the approximately $18 billion has been paid. Medicaid Minnesota’s programs were fraudulent.
“What we see in Minnesota is not a handful of bad actors who are committing crimes,” Thompson said. “It’s swamping in Minnesota.”
New findings by investigators could embolden the President donald trump In his claims that Minnesota is a “hotbed of fraudulent money laundering activity” under the government. tim waltzWho was the Vice Presidential candidate of the Democrats in last year’s presidential election.
Trump has exploited fraud cases in Minnesota to target Somali immigrants, calling them “trash” and saying he does not want immigrants from the East African country in the US.
Thompson said 14 state-run programs were flagged as having significant fraud problems, and many of the defendants were receiving money from multiple Medicaid programs.
“What we’re seeing are programs that are completely fraudulent,” he said.
Five new defendants have been charged in connection with Minnesota Housing Services fraud, Thompson said. The two defendants, he said, embezzled $750,000 in exchange for helping Medicaid recipients find stable housing. Prosecutors allege he used the proceeds to travel to international destinations including London, Istanbul and Dubai.
Thompson said one defendant submitted $1.4 million in fraudulent claims, using some of it to buy cryptocurrency. Federal authorities say he fled the country after receiving the subpoena.
The five new defendants join eight others charged in September for their alleged role in a scheme to defraud the Minnesota Housing Stability Services program.
Prosecutors also named a new defendant, accused of defrauding another state-run, federally funded program that provides services for children with autism, alleging he submitted millions of dollars in claims for Medicaid reimbursements. A woman previously accused of exploiting that program pleaded guilty Thursday morning, authorities said.
He singled out Minnesota as an outlier, saying the scale of fraud far exceeds other states and he sees more red flags in claims submitted by providers than legitimate business. Asked who was to blame, Thompson said the state “hasn’t done a good job of mining these programs.”
Thompson said fraud jeopardizes government-run services for those who really need them.
“There are real patients, real customers, real people who need services and they’re not getting services,” he said.