Minnesota has a serious fraud problem, and it’s unlike anything you see in other states. That’s not my opinion. That is what U.S. Attorney Andrew Luger told KSTP recently: “No other states have had the kinds of problems we’ve had with government fraud.”
Lugar played a key role investigating the Feeding Our Future scandal, the largest COVID-19 relief fraud in the country. But Feeding Our Future was only the tip of the iceberg. Fraud and waste are rampant in Governor Tim Walz’s administration, and it appears they are either unable or unwilling to stop it.
For example, these are scandals that were reported in just the last few weeks:
DHS refuses to collect medicaid overpayments
The Minnesota Department of Human Services (DHS) owes taxpayers an explanation for over $40 million Medicaid overpayments. These funds intended for medical assistance were overpaid to providers, including nursing homes. The Office of the Legislative Auditor found DHS failed to even try to collect these debts for years. Worse, they’ve decided to stop pursuing many of them altogether, claiming the returns aren’t worth the effort.
These failures are compounded by the fact that DHS hasn’t accurately reported its finances since 2019. With state budgets tightening, every dollar counts. Yet, under Governor Walz’s leadership, we’re watching millions disappear.
Autism centers raided after significant fraud uncovered
On December 12, the FBI raided autism centers in Minnesota after discovering “substantial evidence” of Medicaid fraud. These facilities allegedly submitted false claims for services that were never provided. Some of the “treatments” involved untrained teenagers sitting on their phones while Medicaid was billed for eight-hour sessions. In one case, Medicaid was billed for services supposedly rendered by staff who weren’t even in the country. Over the last five years, autism program spending has surged 3,000%, and while legitimate needs have grown, so has fraud.
To make matters worse, about a dozen of the people named in the warrant had ties to the Feeding Our Future fraud scandal.
Low income mothers ripped off in fake tutoring scheme
In another heartbreaking scandal, low income mothers were preyed upon by fraudsters and had their tax refunds stolen in a sketchy-at-best tutoring scheme.
Two tutoring companies – Success Tutoring and Achievers Tutoring – misled families and pressured them to sign up for tutoring services. They sold participants faulty laptops and provided subpar tutoring by overseas instructors earning $4.50 an hour. And then they raided families’ K-12 tax refunds to line their pockets.
There was little oversight or verification done. The Minnesota Department of Education (MDE) certifies providers for the tax credit but does not track how much individual companies receive, and there was almost no rigorous vetting or follow-up.
State agencies and lawmakers failed to protect vulnerable families. Mothers trusted these companies because they were promoted in community spaces like mosques. Instead, they were left in debt while their children received little to no benefit.
Addiction recovery fraud used to pay for private jets and luxury cars
Finally, an addiction recovery company called Evergreen Recover billed Medicaid $30 million for non-existent treatment sessions. Some sessions were logged for clients who were miles away—or even committing crimes.
These fraudsters used the Medicaid scheme to pay for their own opulent lifestyles, including private jets, luxury cars, and designer clothing.
These aren’t isolated incidents. They’re systemic failures. Governor Walz and the Democrats had complete control of state government and bear responsibility, but then have shown a total inability to stop fraud before it happens.
When my Republican colleagues and I suggested ideas that could add layers of protection, Democrats rejected them. We tried repeatedly to warn about the fraud risks involved with these government programs. We tried to put safeguards in place. We tried to push for stricter oversight and greater transparency to protect your tax dollars. To no avail.
I will reintroduce a number of these bills again in 2025 to try to tackle this problem. I hope my Democrat colleagues will take it more seriously than they have in the past.
Fraud isn’t a victimless crime. Every dollar stolen is a dollar that could have helped a kid learn to read, keep a nursing home open, or support first responders. The Walz administration’s pattern of inaction and excuse-making sends a clear message: protecting taxpayer money is just not a priority.
Minnesotans deserve accountability, not excuses. It’s time to confront this issue head-on, with serious reforms and real leadership. Governor Walz has failed to deliver, but Republicans will continue to make it a top priority.