Overview
- House Oversight Chairman James Comer requested Treasury suspicious activity reports, including those tied to Minneapolis’ Riverside Plaza and Karmel Mall, and sought transcribed interviews with current and former Minnesota officials plus a Justice Department briefing.
- The Small Business Administration notified Gov. Tim Walz it is stopping more than $5.5 million in annual support to SBA resource partners in Minnesota until further notice, citing oversight failures.
- Assistant U.S. Attorney Joe Thompson said “half or more” of $18 billion billed since 2018 across 14 Medicaid-related programs could be fraudulent, a figure state leaders dispute as unsupported by evidence.
- Federal prosecutors have expanded cases linked to programs such as Housing Stabilization Services and autism therapy, bringing total defendants to 92 with 57 convictions, and earlier charged more than $240 million stolen via Feeding Our Future.
- State actions include creating an Office of Inspector General Coordinating Council, appointing Tim O’Malley to lead program integrity, auditing 14 high‑risk programs, and pausing some payments, while investigators say some proceeds were traced overseas with no indication defendants aimed to fund Al‑Shabaab.