Minnesota fraud – Justice Department leaders say criminal charges filed in Minnesota target fraud schemes totaling more than $90 million, including Medicaid losses and an autism-related case. The push comes as tensions deepen between the Trump administration and Gov. Tim Walz’s
Minneapolis became a stage for competing stories Tuesday, as Trump administration officials announced criminal charges they described as the most sweeping fraud allegations yet in Minnesota.
At a May 21 press conference in Minneapolis. Colin McDonald. who leads the Justice Department’s National Fraud Enforcement Division. said the government has charged 15 defendants in Minnesota over schemes he said targeted more than $90 million in taxpayer dollars. The cases, he said, included fraud involving Medicaid and autism-related benefits.
“Today’s charges are unprecedented,” McDonald said.
He added that the alleged Medicaid losses represent the highest loss amount ever charged in a Medicaid case in Minnesota. He also said the autism fraud case is the largest autism fraud scheme ever charged by the Department of Justice.
The announcement landed amid a growing public fight between the Trump administration and Minnesota officials over fraud allegations. Minnesota Gov. Tim Walz. the Democratic vice presidential candidate in 2024. ended a governor reelection bid in January after accusations of fraud in the state. A federal prosecutor’s estimate placed potential Medicaid fraud in state-run programs since 2018 at more than $9 billion.
Walz’s office did not immediately respond to a request for comment on May 21. Before Tuesday’s announcement, Walz had pushed back on some fraud allegations. At a press conference on Dec. 19. Walz said. “You’re seeing a weaponization.” He continued: “They’re going to continue to come up with numbers that don’t have it there. and it’s. it’s sensationalized. I don’t expect anything different from this administration.”.
In the courtroom details laid out on Tuesday. McDonald described an alleged scheme involving two defendants who. he said. paid kickbacks to parents who brought their children to autism centers. McDonald said the children were diagnosed with autism even if, in his telling, that diagnosis wasn’t medically required. The government was then billed for autism services that were not actually provided.
McDonald also described another case involving more than $22 million, where two defendants allegedly defrauded a program meant to help people with disabilities live in their own homes.
“Instead, these disabled individuals were used like lottery tickets by these defendants to generate millions of dollars, which these defendants used to expand their real estate holdings, purchase luxury vehicles, and splurged on expensive jewelry,” McDonald said.
“The fraud here in Minnesota is shocking,” McDonald said. “We will not, full stop, tolerate this greed and deceit.”
The press conference was also used to extend the administration’s argument beyond the specific cases. Health and Human Services Secretary Robert F. Kennedy Jr. spoke at the same event. saying. “We will not allow criminals to treat children as billing opportunities. while American taxpayers foot the bill.”.
Dr. Mehmet Oz, the administrator for the Centers for Medicare & Medicaid Services, framed the issue around the survival of programs. “We are all up here because we love these programs,” Oz said. “When we’re unable to keep these programs alive because of fraudsters, it hurts all of us,” he added.
The announcement follows an ongoing federal crackdown that has already affected Minnesota’s finances. Since February, the federal government has halted hundreds of millions of dollars in Medicaid funding to Minnesota due to concerns about potential fraud.
Oz said May 21 that federal officials will not be releasing those withheld funds until they receive answers from the Minnesota state government to questions they have asked. He said the state has funds to cover the money that has been withheld.
Taken together. the new charges and the funding pause put both sides in the same spotlight: the Justice Department and HHS describing schemes they say siphoned money from Medicaid and autism-related benefits. and Minnesota officials insisting the dispute is being driven by numbers they believe don’t match the evidence.
Minnesota fraud cases Justice Department National Fraud Enforcement Division Medicaid fraud autism benefits fraud $90 million Tim Walz Robert F. Kennedy Jr. Mehmet Oz Centers for Medicare & Medicaid Services federal Medicaid funding withheld kickbacks disabilities program
90 million?? sounds like someone finally got caught, i guess.
So this is fraud but they’re also saying Walz did something before? I’m confused, why is everyone fighting in pressers instead of just dropping charges and done. Autism money is always the biggest headline but somehow it’s still politics.
weaponization my ass. if it’s “unprecedented” then why didn’t they do it earlier, like in 2018 or whatever? also $9 billion estimate since 2018 is crazy, but they’re only charging 15 people so far? makes me think the numbers are being picked to fit the narrative.
This feels like the usual blame game. Medicaid fraud here, autism fraud there, and next thing you know it’s election season again. I saw something on TikTok that said Walz’s office was exaggerating and now Trump people are “sweeping” it up… so which one is it? can’t tell, and honestly I don’t trust either side.