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another massive MN fraud in public programs.
| ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, | 07/18/25 |
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Date: July 18th, 2025 10:11 AM Author: ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, MN seems to be suffering from massive fraud after massive fraud in public programs. what gives?
"The Program has proved to be extremely vulnerable to fraud," wrote a special investigator in a search warrant. "Fraud is a huge problem in Minnesota," Acting U.S. Attorney Joe Thompson said at the scene of one raid.
Alpha News was on location as a search warrant was being served at several locations related to a “massive scheme to defraud” Medicaid and Minnesota’s Housing Stabilization Services (HSS) program.
According to the search warrant, the fraud investigation involves HSS providers who billed for various services intended to provide stable housing for Minnesotans.
The search warrant states, “The Program has proved to be extremely vulnerable to fraud.”
The vulnerability stems from limited requirements for service providers and the vast services they can provide for Medicaid reimbursement.
“Since Minnesota became the first state to offer Medicaid coverage for Housing Stabilization Services, dozens of new companies have been created and enrolled in the program. These companies, and the individuals who run them, have taken advantage of the housing crisis and the drug addiction crisis in Minnesota to prey on individuals who need help getting back on their feet as they recover from drug addiction,” the warrant says.
“These companies and individuals do so by contacting Medicaid-eligible people in halfway houses and residential drug treatment facilities and offering to help them find stable housing. After registering these people to receive housing stabilization services, the companies fraudulently claim to provide dozens of Program service hours to their new ‘clients.’ In reality, client after client has reported that they received little or no actual services or assistance from these companies. But the companies engaged in this scheme have received millions of dollars in Medicaid funds for housing stabilization services they did not actually provide,” it continues.
HSS providers can bill Medicaid for providing all kinds of housing-related services, including: consultations, housing transition services, housing sustaining services, moving expenses, and other services.
Alpha News on location during search warrant The search warrant stems from an investigation into HSS-related fraud, including “wire fraud, healthcare fraud, and conspiracy to commit wire fraud and healthcare fraud.”
Twenty-two HSS providers—who received more than $8 million in Medicaid payments—operate at the same location: the Griggs Midway Building, the warrant explains.
Alpha News reporter Liz Collin was on scene Wednesday morning at that location when investigators served a search warrant—along with Acting U.S. Attorney Joe Thompson.
“Fraud is a huge problem in Minnesota. Hopefully today will help put a stop to it,” Thompson said.
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