Justice Department Receives Criminal Referral Alleging Fraud in Minnesota Programs

The referral followed a 205-page report from the Republican-led House Oversight Committee that detailed years of alleged fraud in the state's programs and included claims of retaliation against whistleblowers.

The committee report described how officials at the Minnesota Department of Human Services hired private investigators and outside law firms to monitor employees who raised concerns about suspected fraud. It included an allegation that one manager suggested using military connections to track those employees.

According to the report, state officials were aware of credible fraud concerns for years but did not halt payments or remove questionable providers from government programs. House Oversight Committee Chairman James Comer stated that the findings represented one of the most significant oversight failures examined by the committee.

Comer sent a letter to the vice president on Monday urging a comprehensive review of Minnesota's social service programs and anti-fraud safeguards.

The vice president was appointed in February to head the White House Task Force to Eliminate Fraud. The referral follows the Trump administration's pause on federal Medicaid reimbursements to Minnesota, announced jointly by the vice president and Centers for Medicare & Medicaid Services Administrator Mehmet Oz.

The scrutiny has centered on claims that daycare providers misused pandemic-era federal funds. The governor ended a campaign for a third term as governor in early January. The Government Accountability Office estimates that fraud costs the federal government between $233 billion and $521 billion annually.

No charges have been filed as a result of the referral.