Prosecutors Say $9 Billion Stolen in Minnesota Social Program Schemes
Prosecutors now estimate losses at roughly $9 billion, highlighting how vulnerable state-administered federal benefits proved to coordinated fraud.
Overview
- Federal cases tied to the Minnesota schemes have produced 98 charges and 64 convictions so far, according to remarks highlighted in new coverage.
- Investigators say the fraud spread across at least 14 state-run, federally funded programs, with spending surges such as Integrated Community Supports rising from $4.6 million in 2021 to over $170 million three years later and an autism program jumping from $6 million in 2018 to more than $192 million by 2023.
- Treasury officials say they are tracking whether some stolen funds reached Somalia, where al-Shabaab operates, with no proven evidence of terrorist financing to date.
- One recent conviction involved a $14 million Medicaid theft in which hundreds of thousands of dollars were routed overseas and used to buy real estate in Kenya.
- Political and policy responses are intensifying as Senate Republicans elevate oversight and cite expanded DOJ staffing and an HHS funding freeze in Minnesota, while commentators call for rigorous audits, stronger identity and eligibility verification, and tighter controls on third-party providers.