Justice Department Charges 15 in $90 Million Minnesota Medicaid Fraud

Federal prosecutors announced criminal charges against 15 defendants in Minnesota on Thursday, alleging they orchestrated schemes to steal more than $90 million from taxpayer-funded Medicaid programs. The indictments represent a significant escalation in the federal government's efforts to combat fraud within the state's social safety net.

Assistant Attorney General Colin McDonald, who leads the Department of Justice's National Fraud Enforcement Division, detailed the charges at a news conference in Minneapolis. He stated the cases involve seven separate state-administered Medicaid programs that were systematically exploited. Officials described the operation as the largest autism fraud scheme ever charged by the Justice Department and said it includes the highest loss amount ever prosecuted in a Medicaid case in Minnesota.

Prosecutors pointed to specific programs where spending ballooned suspiciously. They cited Minnesota's Housing Stabilization Services program, designed to assist homeless residents, which was projected to cost approximately $2.5 million annually when launched in 2020. By 2024, its costs had surpassed $104 million, a surge officials attributed entirely to...