Recent major fraud cases in Minnesota
Jan 03, 2025
Feeding Our Future
The nonprofit stands accused of being at the center of a $250 million fraud scheme during the pandemic. More than 70 individuals have been charged in connection with the matter by federal authorities. Authorities say money was diverted from feeding low-income children to be used to purchase luxury cars, jewelry, and property, some of it overseas. In October, Mohamed Jama Ismail was sentenced to 12 years for his role in the scheme. He was one of five people convicted in June. Also in June, the Office of the Legislative Auditor issued a report blaming “inadequate oversight” and finding that the state Department of Education failed to act on warning signs of fraud.
Medicaid
Minnesota Attorney General Keith Ellison in June alleged that Medicaid fraudsters provided false documentation, overbilled for services and billed for services they didn’t provide resulting in $10 million taken. The charges were filed in Hennepin County.
In one case, three individuals are accused of stealing more than $9 million from the program. Minnesota distributes the federal money for home care and transportation services to people with low incomes.
Autism
Last month a Medicaid fraud investigation came to light as the FBI served search warrants on autism service providers in Minneapolis and St. Cloud. A search warrant application unsealed by a federal judge alleged that Smart Therapy in Minneapolis received nearly $14 million in reimbursement from Medicaid between 2020 and last month. Star Autism Center in St. Cloud — which opened in August 2020 — received $6 million. Investigators say the clinics made fraudulent Medicaid claims for services that they never provided, and claimed to pay employees who had little or no training or purported to work unusual schedules.
The alleged scheme appears to be connected to the Feeding Our Future case. Authorities say at least a dozen defendants charged in the Feeding Our Future case also owned or received money from autism clinics and other health care companies. Smart Therapy signed up to be a meal site under the auspices of Feeding Our Future.Related Articles
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