Government fraud schemes can devastate public programs and harm vulnerable citizens, as demonstrated by Minnesota's Medicaid fraud cases where a $250 million scheme resulted in a 40-year prison sentence for the ringleader, a $90 million raid arrested 15 people, and a homeless housing program that cost $104 million annually (up from $2.5 million) was forced to shut down, leaving homeless veterans without services and causing at least one death when a recipient needed 24-hour care but received none.
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Deep Dive
Today, the… DOJ announced a massive take down of two of the largest Medicaid fraudAdded:
Just like all of you, I was shocked last December when I watched Nick Sherley's bombshell investigation of migrant fraud in Minnesota, which called attention to the now infamous Quality Learning Center instead of learning, and other schemes across that state. This morning, the ringleader of the $250 million Feeding Our Future fraud scheme in Minnesota was sentenced in federal court to over 40 years in prison, bringing justice to the countless school children and families she had scammed. And on top of that, today federal law enforcement launched a massive raid in Minneapolis. Across the city, agents have arrested 15 people for suspected fraud that amounted to $90 million. dollars.
This includes two of the largest Medicaid fraud cases in Minnesota history, as well as the largest autism fraud scheme ever charged by the US federal government. With this action, we're bringing justice to some of America's most vulnerable citizens and justice to the American taxpayer. In 2018, Minnesota tried to provide housing services for the homeless. They estimated that the cost of the program would be $2.5 million a year. By 2024, the program had exploded to $104 million annually, and almost all of that, almost all of it, was because of fraud.
As a result, the state had to shut down the program and can no longer provide those services to Americans in need. So, we've got homeless veterans sleeping on the streets because fraudsters got rich.
But, it's not just the homeless who are the victims of these fraudsters. The victims in the cases announced by DOJ today also include disabled Americans who rely on community support to live full, independent lives. And citizens for whom defrauding such programs is literally a matter of life and death.
In one of the most horrifying cases charged today, a recipient who needed 24-hour care was supposed to be receiving exactly that through a Minnesota Medicaid benefit program.
But, he received nothing.
No care, no services, nothing for months on end. And then, he went quiet.
For 2 days, a neighbor tried to check on him, knocking on his apartment door.
Nothing.
Shortly after he was found dead.
One day before this man died, the fraudster in question had tried to bill for the non-existent services. The services that if they had been provided, this man might actually be with us today.
To get rich off taxpayers, even at the cost of others' lives, just as that fraudster had for many months before.
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