Half of $18B in federal funds for Minnesota-run programs may have been defrauded, official says

Half or more of the roughly $18 billion in federal funds that supported 14 Minnesota-run programs since 2018 may have been stolen, a federal prosecutor said Thursday, describing the massive and multilayered fraud schemes as staggering. First Assistant U.S. Attorney Joe Thompson said the scale of fraud puts services at risk for people who need them, including adults leaving addiction treatment centers who needed help finding a stable place to live and children with autism who were seeking one-on-one therapy. While prosecutors typically see fraud manifest as providers overbilling, Thompson said during a news conference in Minneapolis that companies have been created to provide zero services while submitting claims to Medicaid and pocketing federal funds for international travel, luxury vehicles and lavish lifestyles.