MN GOP lawmakers send letter to Walz demanding answers about fraud trend

Outrage continues to grow over a potential $1 billion in fraud across the state.

RELATED: US attorney says Minnesota government fraud could exceed $1 billion

A group of GOP lawmakers sent a letter to the office of Gov. Tim Walz, demanding answers about the ongoing trend. It says in part, “as Minnesota is facing a projected $6 billion deficit, this continued pattern of fraud in Minnesota is completely unacceptable.”

KSTP caught up with taxpayers on the issue.

“We need to be more transparent as far as where this money is going,” said Katie from New Brighton. “Taxpayers, they work hard, they want to see where their money is going.”

“It just makes me sad, frustrated,” said Chris Miller.

The latest alleged fraud comes from the Minnesota Department of Human Services’ Housing Stabilization Services program.

Last week, federal authorities executed search warrants at eight offices and homes around the metro connected to the program.

DHS says it’s “focused on rooting out fraud and abuse.”

“It’s been kind of swept under the rug for too long; it needs to come out, and it needs to be put out there for checks and balances,” Katie said.

Gov. Walz cites this most recent investigation as a positive step forward, adding in a statement, “the Governor has pushed state government to stay one step ahead of the criminals who attempt to take advantage of state services, and that’s exactly what we’re seeing play out in this case.”

Acting U.S. Attorney for Minnesota Joe Thompson said this week that his office has prosecuted half a billion dollars in government fraud over the last few years.

5 INVESTIGATES went through every public release from the U.S. Attorney’s Office since 2020 and documented every case of fraud dealing with public assistance in Minnesota.

The rough number we do know is that $430 million in fraud has been prosecuted here in Minnesota in just the last five years.

One of the biggest cases is Feeding Our Future, which the U.S. Attorney’s Office estimates to be around $300 million alone.

Just last week, the feds announced the investigation into Housing Stabilization Services — the unsealed search warrant identified about $9 million in fraud in that case, but that investigation is just getting started.

Thompson has said he believes the majority of the entire $300 million program is fraud.

Finally, federal search warrants accuse two autism centers of $20 million in fraud, but again, that number is also expected to grow.

RELATED: Hundreds of autism centers popped up to meet demand in Minnesota. Now 85 are under investigation.

The 5 INVESTIGATES review shows the U.S. Attorney’s Office has clawed back or a judge has ordered defendants to pay back about $100 million in the last five years, including about $75 million in the Feeding Our Future case alone.

The money recovered goes back to the federal government.

“All that money could have helped so many people get off the streets,” Miller said.

At one point, Miller applied to get assistance through HSS, but it never worked out. Now he just wants to see some accountability.

“I am looking forward to seeing what is actually going to be done and how they are actually going to fix the problem,” Miller said.

RELATED: Republican state lawmakers ask for federal audit of Minnesota DHS over Medicaid fraud

The governor’s office also told KSTP in response to the congressional letter that he plans to ask for additional funding in the upcoming legislative session for solutions like the use of AI to catch these fraud schemes sooner.

None of the GOP lawmakers who signed the letter accepted KSTP’s request for an interview.

You can read the letter in its entirety below: