Minnesota Governor Tim Walz.

By The Canadian Press

Prosecutor says 14 Minnesota programs are targeted for fraud and the state is swamped with crime

Dec 18, 2025 | 10:30 AM

MINNEAPOLIS (AP) — At least 14 state-run programs in Minnesota have been flagged for fraud, a prosecutor said Thursday as he announced new charges in several schemes.

Five new defendants have been charged in connection with a Minnesota housing services fraud, First Assistant U.S. Attorney Joe Thompson said during a news conference.

“What we see in Minnesota is not a handful of bad actors committing crimes,” Thompson said. “It’s swamping Minnesota.”

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.

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.

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The five new defendants join eight others charged in September for their alleged roles in the scheme to defraud the Minnesota Housing Stability Services Program.

Thompson said 14 state-run programs have been flagged as having significant fraud problems, and many of the defendants were getting money from multiple Medicaid programs.

“What we’re seeing is programs that are entirely fraudulent,” he said.

Prosecutors also named a new defendant accused of defrauding another state-run, federally funded program that provides services for children with autism, alleging he submitted millions of dollars worth of claims for Medicaid reimbursement. One woman previously charged for exploiting that program pleaded guilty Thursday morning, officials said.

Hannah Fingerhut And Giovanna Dell’orto, The Associated Press