DOJ sends additional prosecutors to Minnesota to pursue fraud investigations

Bondi warned there would be “severe consequences in Minnesota,” adding that the DOJ is “ready to deploy to any other state where similar fraud schemes are robbing American taxpayers.”

Federal authorities are investigating several alleged fraud schemes in Minnesota, including cases tied to the $250 million Feeding Our Future scandal, where prosecutors allege that COVID-19-era funds intended to provide meals for low-income children were siphoned off by fraudsters. The department is also investigating alleged fraud involving Minnesota’s Housing Stabilization Services program, which is designed to help individuals find housing through Medicaid, as well as the Early Intensive Developmental and Behavioral Intervention program, which provides funding for services for children with autism.

Earlier this month, the US Department of Health and Human Services froze billions of dollars in funding for childcare programs and other social services in Minnesota and several other states while federal investigations are ongoing.

Minnesota has drawn increased scrutiny following reporting by independent journalist Nick Shirley, who documented daycare centers receiving government funding that appeared to be largely nonfunctional or inconsistent with what was reported to authorities. Several locations highlighted in his reporting are now under investigation by the Department of Justice.

According to the DOJ, more than 1,750 subpoenas have been issued and over 130 search warrants have been executed as part of the investigations. Federal prosecutors say 98 defendants have been charged so far, 85 of whom are Somali.