Minnesota Medicaid fraud over $9 BILLION: US Attorney

First Assistant US Attorney Joe Thompson revealed on Thursday that at least $9 billion had been defrauded from Medicaid services in Minnesota since 2018. This comes amid a focus on fraud in the state, especially fraud carried out by Somalis in the Minnesota. 

Thompson said in a press conference that 14 Medicaid services in the state were under audit and deemed "high risk" for fraud, and had cost the state around $18 billion since 2018. While an exact number was not revealed, Thompson said that a "significant amount" of that $18 billion was fraud. 

"I don't make these generalizations in a hasty way," he later added. "When I say significant amount, I'm talking on the order of half or more. But we'll see. When I look at the claims data and the providers, I see more red flags than I see legitimate providers."

"The magnitude of fraud in Minnesota cannot be overstated. It’s staggering amounts of money that have been lost," he added. 

Minnesota Department of Human Services Inspector General James Clark said in a statement, "If there is evidence of Medicaid fraud, the state should be given the information so DHS can slam the door shut on payments to those individuals and businesses. We have been moving more aggressively than ever to suspend payments where we see evidence of fraud and refer criminals to law enforcement for prosecution. I've previously sent letters to the U.S. Attorney's Office asking them to share evidence of fraud and I'm requesting a meeting immediately to discuss how we can partner to stop criminals now."

President Donald Trump has called Minnesota, under Democrat Governor Tim Walz, "a hub of fraudulent money laundering activity," as dozens have been charged or convicted in connection with fraud schemes in the state. As of late November, 78 defendants have been charged in connection with the group Feeding Our Future, an organization that claimed to be serving food to hungry children. Instead, the majority of the funds went to the pockets of organizers.

The latest defendant charged in the case, Abdirashid Bixi Dool, is alleged to have "falsely claimed to be serving over 40,000 meals to children every week." Per the DOJ, "In support of his false claims, Dool submitted fraudulent invoices, purporting to detail the food purchased by Bilaal and MRC to feed hungry children. In reality, Dool purchased very little food.  Dool also submitted phony rosters purporting to list the names of the hungry children who he fed at his meal sites.  These rosters were also fake."

Dool and a conspirator allegedly "laundered most of the taxpayer dollars to their families and to themselves.  Dool used his cut of the fraud proceeds to travel and to buy real estate in Minnesota."