The Justice Department on Thursday unveiled sweeping criminal charges against 15 defendants in Minnesota, accusing them of orchestrating schemes that allegedly siphoned more than $90 million from state-run Medicaid programs in what federal prosecutors described as a growing “fraud crisis.”
Federal officials said the cases span seven separate Medicaid-related programs administered by the state, with prosecutors alleging taxpayer-funded services meant for vulnerable residents were instead exploited by fraudsters chasing government cash.
“Let me be clear upfront about something: This is not the end of our work in Minnesota,” Colin McDonald, assistant attorney general for the DOJ’s National Fraud Enforcement Division, said during the announcement. “This is the beginning of our work in Minnesota. The fraud here in Minnesota is shocking.”
At the center of the allegations is Minnesota’s housing stabilization services program, which was originally designed to help homeless residents secure and maintain housing. Prosecutors said the initiative exploded in cost far beyond original projections in what they argue was a glaring warning sign of abuse.
According to McDonald, the program was projected in 2020 to cost roughly $2.5 million annually. By 2024, however, spending had surged to more than $104 million.
Federal prosecutors argued the spike was not the result of legitimate demand, but widespread fraud and abuse inside the system.
“One of the programs has been completely shut down because there’s no money left: It’s all gone,” McDonald said.
He added that the housing program was ultimately terminated in 2025, leaving vulnerable homeless populations without access to services the program had originally been created to provide.
Prosecutors also pointed to what they described as alarming growth in other Medicaid-funded programs, including an autism services initiative that McDonald said ballooned from roughly $600,000 in annual costs six years ago to more than $400 million.
“That number is not driven by supply and demand,” McDonald said. “It is not driven by healthcare or charity. It is fraud.”
The DOJ said it has now deployed 11 strike force prosecutors from around the country into Minnesota as part of an expanding enforcement effort aimed at uncovering additional fraud schemes.
McDonald signaled Thursday that more cases could be coming as investigators continue combing through state-administered healthcare spending.
Acting AG Todd Blanche shared the following on X: “These criminals allegedly stole from our country’s most vulnerable: children with autism, the disabled, and the homeless. In one case, services were allegedly billed but never provided, leading to the death of the supposed recipient. This will not be tolerated.”
Today, in Minnesota, the Justice Department charged 15 defendants in a major fraud crackdown involving over $90 million in losses — including the largest Medicaid fraud cases in the history of the district.
These criminals allegedly stole from our country's most vulnerable:…
— Acting AG Todd Blanche (@DAGToddBlanche) May 21, 2026
The crackdown adds to the mounting scrutiny of Minnesota’s oversight of taxpayer-funded assistance programs, after several high-profile fraud investigations in recent years rocked the state and raised broader questions about accountability and internal controls.
Watch the clip below:
🚨 HOLY CRAP! The Trump DOJ has just announced a MASSIVE $90M FRAUD BUST in Tim Walz's Minnesota, with criminal charges being slapped on 15 defendants
This involves 7 STATE-MANAGED MEDICAID PROGRAMS totally plundered by fraudsters — one program has $0 LEFT! 🤯
Tim Walz knew!… pic.twitter.com/KottcIOU2K
— Eric Daugherty (@EricLDaugh) May 21, 2026
