Minnesota’s $90 Million Medicaid Fraud Empire Crumbles as 15 Defendants Face Federal Charges | WLT Report Skip to main content
We may receive compensation from affiliate partners for some links on this site. Read our full Disclosure here.

Minnesota’s $90 Million Medicaid Fraud Empire Crumbles as 15 Defendants Face Federal Charges


President Trump’s DOJ has now charged 15 people in what the Department of Justice is calling the Minnesota Health Care Fraud Takedown, a sprawling set of schemes involving more than $90 million in intended losses to taxpayers.

The DOJ announced on May 21 that the cases include the two largest Medicaid fraud cases ever charged in the District of Minnesota.

The Justice Department laid out the scope of the Minnesota takedown in its official announcement:

The department announced criminal charges against 15 defendants, including child care center owners and Medicaid providers, for alleged fraud schemes involving more than $90 million in intended loss across taxpayer-funded health care and social service programs. DOJ said the cases include the two largest Medicaid fraud cases ever charged in the District of Minnesota, first-of-their-kind charges involving additional Medicaid programs, and allegations that fraudsters drained resources meant for children, vulnerable patients, seniors, and people with disabilities.

ADVERTISEMENT

The announcement also included a national Medicaid fraud enforcement expansion, with funding for 15 new trial attorney positions in the Health Care Fraud Section. Acting Attorney General Todd Blanche said the alleged scammers ripped off taxpayers, harmed legitimate beneficiaries, and that the Minnesota cases are only the beginning of a broader effort to dismantle benefit fraud schemes across the country.

Investigative journalist Nick Shirley, whose reporting helped push the Minnesota fraud story into the national spotlight, put it simply.

That last part should make every taxpayer sit up straight.

The centerpiece of the takedown is what the DOJ described as the largest Medicaid autism fraud case ever charged by the Department, a $46.6 million scheme targeting Minnesota’s Early Intensive Developmental and Behavioral Intervention (EIDBI) program.

According to DOJ, EIDBI is a Minnesota Health Care Program for medically necessary services for people under age 21 with autism spectrum disorder. Federal officials said claims in that program jumped from more than $600,000 in 2018 to more than $400 million by 2025.

According to federal prosecutors, defendants paid kickbacks to parents, diagnosed children with autism regardless of medical necessity, and billed for autism services that were never actually provided.

The growth of the program tells the story of how badly it was exploited.

EIDBI claims in Minnesota went from just over $600,000 in 2018 to more than $400 million by 2025.

That is not organic growth. That is a program being systematically looted.

The fraud extended well beyond autism services.

ADVERTISEMENT

The DOJ also announced charges related to Integrated Community Supports, including allegations that a vulnerable recipient who required 24-hour care was billed for services he never received.

That individual was later found deceased.

Eight additional defendants were charged with defrauding Housing Stabilization Services of approximately $15.7 million.

DOJ said some defendants were Pennsylvania residents who traveled to Minnesota for what federal officials called fraud tourism. The department said Minnesota shuttered the HSS program in October 2025 because of fraud, showing how these schemes can destroy programs meant for vulnerable beneficiaries.

Federal officials said some of those defendants were Pennsylvania residents who engaged in what prosecutors called “fraud tourism,” traveling to Minnesota specifically to exploit its programs.

CBS Minnesota added more local context from the federal press conference:

The charges covered seven state-managed Medicaid programs, according to the local report, and federal officials described a pattern in which suspects allegedly billed the state for services they did not provide. The money was then spent on real estate, cars, jewelry, and other lavish items, according to the same report.

Federal officials described Minnesota-run programs as a personal piggy bank for alleged fraudsters. CBS also connected the national attention around the scandal to Nick Shirley’s viral reporting, which was amplified by Elon Musk, Vice President JD Vance, and former Attorney General Pam Bondi after years of mounting controversy over fraud in Minnesota programs.

ADVERTISEMENT

Federal prosecutors have estimated Minnesota fraud could top $9 billion, a figure Gov. Tim Walz disputes. Walz has argued that his administration spent years cracking down on fraud and accused President Trump of politicizing the issue.

Federal prosecutors have estimated total Minnesota Medicaid fraud could exceed $9 billion.

Governor Tim Walz disputes that figure and claims his administration has cracked down on fraud, though the scale of the charges announced this week raises serious questions about how long this was allowed to fester.

Assistant Attorney General Colin M. McDonald announced the DOJ is expanding its Health Care Fraud Section with 15 new trial attorney positions to combat Medicaid fraud nationwide.

ADVERTISEMENT
NATIONAL POLL: Was COVID Released On Purpose To STOP Trump? image

Fifteen new prosecutors to go after a problem that may run into the billions. The cleanup in Minnesota is clearly just getting started.

This is a Guest Post from our friends over at 100 Percent Fed Up. View the original article here.

What are your thoughts?



 

Join the conversation!

Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!

Leave a comment
Thanks for sharing!