Fallout from widespread fraud in Minnesota continues to play out in both state and federal courts.
In one of dozens of cases, four men pleaded guilty to defrauding Minnesota’s Housing Stabilization Services program of about $2.2 million.
“These defendants corruptly exploited vulnerable people and a vulnerable program to enrich themselves,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Taxpayer dollars designed to provide shelter and support for the homeless and needy instead went to the pockets of these men. They have now admitted their fraudulent conduct and will face justice for their crimes.”
The HSS program was shut down after investigations revealed systemic fraud that allegedly siphoned millions of dollars from the Medicaid-funded program.
“Medicaid fraud is a serious offense with real consequences,” said U.S. Attorney for the District of Minnesota Daniel N. Rosen. “These defendants stole funds intended to support vulnerable Minnesotans who rely on housing and recovery services. Their guilty pleas underscore my office’s commitment to holding accountable those who exploit public programs.”
The U.S. Attorney’s Office for the District of Minnesota and the DOJ’s Health Care Fraud Strike Force continue to collaborate to “combat prolific fraud on government programs in Minnesota.”
In the case of the four men that pled guilty, they submitted thousands of claims to Medicaid for reimbursement. In total, Moktar Hassan Aden, Mustafa Dayib Ali, Khalid Ahmed Dayib, and Abdifitah Mohamud Mohamed signed up about 350 people for services that were never provided.
This is just one example of many out of Minnesota, which ultimately led to the federal government freezing more than $200 million in Medicaid funds to Minnesota last week.
“They violated the social contract that makes this country strong and makes our democracy function,” said U.S. Health and Human Services Secretary Robert F. Kennedy Jr. at a news conference one week ago.
Funds were also frozen in California. Kennedy said California and Minnesota can restore their funding if they provide documentary proof that the payments are legitimate.
The Minnesota Department of Human Services has released a website addressing federal claims about fraud in the state.
“The federal government’s mischaracterization and misrepresentation of Minnesota’s good faith efforts to fight fraud and improve our systems, makes it difficult to trust that our federal partners are really trying to help us better our systems, rather than penalize Minnesotans,” MDHS said on that website. “Medicaid is a foundation for our entire health care delivery system, and major funding losses threaten to destabilize care for all Minnesotans.”
The DOJ has promised to continue combating taxpayer fraud in Minnesota, which is estimated to total between $9 and $20 billion.
“They have now admitted their fraudulent conduct and will face justice for their crimes,” McDonald said. “In the meantime, our work to stamp out fraud in Minnesota will continue in abandon.”