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Dear Neighbor,

There’s been a lot of talk at the Capitol lately about fraud happening across Minnesota. I want to share an easy rundown of what’s been going on and what’s making headlines.

November brought a big wave of attention to the state’s oversight systems, from major federal prosecutions to controversial court rulings. By the end of that month, new federal investigations were underway, and Minnesota suddenly found itself in the national spotlight.

*National attention on MN fraud*

What used to be seen in our state as a Minnesota problem has now become a nationwide conversation. Early in November, federal officials pointed to Minnesota’s welfare and benefits programs as examples of deeper oversight issues across the country. That sparked coverage from Time, Fox News, the Washington Post, and others, highlighting how repeated oversight failures allowed large-scale fraud to grow for years. Things escalated at the end of the month when the U.S. House Oversight Committee launched [ [link removed] ] a formal investigation into “massive fraud” in Minnesota’s social services programs, requesting documents from state leaders and calling out ignored warnings and internal concerns.

*Major cases and sentencing*

Federal cases continued moving forward. Two more people tied to the Feeding Our Future scandal (the 77th [ [link removed] ] and 78th [ [link removed] ] charged) were indicted for fake claims, shell companies, and misusing federal nutrition funds. One of the biggest sentences so far came down this month as well as a 24-year-old received 10 years in prison and nearly $50 million in restitution for claiming millions of nonexistent meals [ [link removed] ].

Other cases showed just how wide-ranging fraud has been in Minnesota:


* A Minneapolis consultant got seven years [ [link removed] ] for a $6 million COVID-era loan and grant scheme.
* A Clay County man was convicted [ [link removed] ] for faking military discharge papers and medals to get about $140,000 in VA benefits.
* Three former Clear Lake city employees were charged [ [link removed] ] with stealing about $200,000 from the city.
* And in a major twist, a Hennepin County judge overturned [ [link removed] ] a guilty verdict in a $7.2 million Medicaid fraud case, even after a jury had convicted the defendant. The Attorney General is challenging the decision, so the case isn’t over.

*Oversight problems and patterns*

Beyond individual cases, several stories pointed to bigger, recurring issues within state agencies. Ongoing KARE-11 reporting on the Housing Stabilization Services program showed a fraud network [ [link removed] ] that took advantage of weak billing and verification practices, including fake services and close family ties that went unnoticed.

Another debate heating up pertains to provider transparency. DHS has the legal authority to release the names of Medicaid providers suspected of fraud, but they’ve chosen not to, citing ongoing investigations. That has frustrated legislators and counties who need that information to protect clients and stop fraud sooner.

*Committee updates*

Meanwhile, the House Fraud Prevention and State Agency Oversight Committee is continuing its work. We’ve been meeting with whistleblowers and state and county employees, drafting legislation to close gaps in current law, and recently held a hearing with DEED to prepare for the January 1 launch of Paid Family and Medical Leave.

If Minnesota wants to avoid repeating past failures, we need better data-sharing, clearer laws, and stronger coordination between agencies and the Legislature. The committee has also invited DHS back for a dedicated hearing next month.

As always, feel free to reach out with your questions or concerns. And if you know anyone who wants to stay updated on fraud issues in Minnesota, please pass this along and encourage them to sign up for the MN Fraud Monitor using this link [ [link removed] ].

Please Contact Me

It’s an honor and privilege to work for you at the Capitol. Don’t hesitate to contact my office at any time this session to share your thoughts, concerns or ideas. You can call me at 651-296-6316, or email me at [email protected]. I am here to serve you!

Bernie

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State Rep. Bernie Perryman
2nd Floor, Centennial Office Building
658 Cedar St., St. Paul, MN 55155          [email protected]
651.296.6316







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