Magnitude ‘cannot be overstated’: Feds say Minnesota fraud may be more than $9B
In a Thursday press conference, federal authorities in Minnesota announced new charges in the fraud scandal that has grabbed national headlines and spoke on the scope of the crisis, saying...
By Fox News · Fox News
In a Thursday press conference, federal authorities in Minnesota announced new charges in the fraud scandal that has grabbed national headlines and spoke on the scope of the crisis, saying that it goes beyond what has previously been reported. "Minnesotans and taxpayers deserve to know the truth of the fraud," First Assistant U.S. Attorney Joe Thompson told reporters at a press conference. "The fraud is not small. It isn't isolated. The magnitude cannot be overstated. What we see in Minnesota is not a handful of bad actors committing crimes. It's staggering industrial-scale fraud. It's swamping Minnesota and calling into question everything we know about our state." Thompson explained that 14 programs have been identified as containing fraud and those programs have cost taxpayers $18 billion overall since 2018. MN LAWMAKER SAYS ‘UNBELIEVABLE’ ASSISTED-LIVING FRAUD SCHEME INCLUDES INDICTED FIGURE STILL GETTING STATE PAY When asked specifically by a reporter how much of that $18 billion is suspected to be fraudulent, which reports have previously suggested could be around $1 billion, Thompson suggested that number will be higher when the investigations are concluded. "I think a significant portion," Thompson responded. Thompson later, "When I say significant, I'm talking in the order of half or more. But we'll see." Six new defendants have been charged in connection with a Minnesota housing services fraud, Thompson revealed on Thursday. Two defendants pocketed $750,000 instead of helping Medicaid recipients find stable housing, Thompson said. Prosecutors allege they used the proceeds to travel to international destinations, including London, Istanbul and Dubai. 'EPICENTER OF FRAUD': MINNESOTA'S EMPTY STOMACHS, FAKE AUTISM THERAPY AND A SCANDAL THAT COULD TOP $2 BILLION One defendant submitted $1.4 million in fraudulent claims, using some to purchase cryptocurrency, Thompson said. Federal officials say he fled the country after receiving a subpoena. The six new defend…