Overview
- First Assistant U.S. Attorney Joe Thompson said investigators are scrutinizing at least 14 high‑risk programs and that half or more of $18 billion in claims since 2018 could be fraudulent.
- New indictments target Housing Stabilization Services for billing nonexistent support, including what Thompson called “fraud tourism” by two Philadelphia men who allegedly obtained $3.5 million.
- Prosecutors added an autism case that involved kickbacks to parents, reported one guilty plea, and agents opened a new probe into Integrated Community Supports with a raid on a Bloomington provider.
- Investigators traced proceeds to international travel, cryptocurrency and real estate purchases in East Africa, particularly Kenya, while stating there is no evidence of direct terrorist financing.
- The escalation follows Education Secretary Linda McMahon’s letter urging Gov. Tim Walz to resign over separate “ghost student” aid fraud that her department estimates at $12.5 million in Minnesota.