Authorities from across the federal government were in Minneapolis Thursday to announce new fraud charges against 15 individuals. The charges represent the latest chapter in what has become Minnesota’s seemingly endless fraud problem.
“This is not the end of our work in Minnesota, this is not the end of the beginning of our work in Minnesota, this is the beginning of our work in Minnesota,” Assistant U.S. Attorney General Colin McDonald said at a press conference.
McDonald was joined Thursday by a group of federal and state officials which included U.S. Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz.
In his remarks, McDonald said the people charged today operated schemes which targeted $90 million of taxpayer funds and involved Minnesota welfare programs such as an autism program and the now-shuttered Housing Stabilization Services (HSS) program.
“Our cases today involve seven different state-managed Medicaid programs that have been systematically pilfered by fraudsters who treated Minnesota-run programs as their personal piggy bank,” McDonald said.
While authorities did not provide specifics about the 15 individuals, the fraud allegations from Thursday appear to mirror schemes that have become commonplace in Minnesota.
Those schemes typically involve fraudsters setting up businesses or shell companies which bill government programs for services that are never provided. To date, federal authorities have convicted dozens in Minnesota’s fraud saga, the vast majority of whom are Somali.
“Today’s arrests represent the largest autism fraud bust in American history,” Kennedy said. “This was not a paperwork error, it was not a technical violation. This was organized theft that exploited the most vulnerable children in America, deceived families, [and] stole taxpayer dollars meant to help children with autism access legitimate care and support.”
Kennedy elaborated, saying “investigators uncovered brazen schemes that billed taxpayers for nonexistent services, fraudulent diagnoses, and fake care, while criminals enriched themselves at public expense.”
Minnesota’s autism program is called the Early Intensive Developmental and Behavioral Intervention (EIDBI) benefit. EIDBI is one of 14 state-run, Medicaid-funded programs that Minnesota state government has designated as being at “high-risk” for fraud.
Federal authorities have previously filed criminal fraud charges against people accused of defrauding those 14 programs.
During Thursday’s press conference, federal authorities indicated that arrests had been made in connection with the 15 individuals who have been charged. However, the FBI played a video of a man who reportedly leapt from a fourth-story balcony to flee arrest today.
FBI Co-Deputy Director Christopher Raia said that man is “currently on the run” and asked the public to send authorities any information related to the man’s whereabouts. McDonald identified the man as “Muhammad Omar.”
In a message to fraudsters, Raia said, “No matter how many shell companies you have, no matter how clever or how brazen your schemes are, if you steal money from taxpayers and people in need, the FBI, and our partners, will pursue you relentlessly. We will find you and ensure you feel the power of American justice.”
The new charges stack on top of the many fraud charges brought by federal authorities in recent years. Since 2022, federal prosecutors have brought dozens of cases in connection to the $250 million Feeding Our Future scheme.
Last year, the U.S. Attorney’s Office in Minnesota announced that fraud in the 14 “high-risk” programs could amount to $9 billion or more since 2018. In recent months, federal authorities have sent 11 new prosecutors to Minnesota to assist with fraud cases.
Additionally, McDonald announced that the U.S. Justice Department is expanding the Midwest Strike Force to Minnesota. That strike force is currently prosecuting healthcare fraud in U.S. Attorneys’ Offices for the Northern District of Illinois and the Eastern District of Michigan.
Reacting to today’s news, Republican gubernatorial candidate Lisa Demuth said, “I applaud our federal partners for their commitment to rooting out Democrat-enabled fraud in Minnesota. When I am governor, I will work hand-in-glove with our federal partners to ensure we are finding, charging, and prosecuting fraudsters as quickly as possible.”
Similarly, GOP State Sen. Michael Kreun said he is “grateful to the federal authorities for their work to investigate and prosecute this $90 million fraud scheme.”
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
