Minnesota’s Exploding Fraud Scandal

Billions Lost, Fake Billing Schemes, and a System in Crisis

Minnesota is now at the center of what federal prosecutors describe as “industrial‑scale fraud” across multiple social service programs including Medicaid, housing assistance, autism therapy, childcare subsidies, and pandemic‑era food programs. Investigators say the scale of the theft is unlike anything seen in the country, with losses potentially reaching over $9 billion since 2018.

These programs were created to protect the most vulnerable people in society, including seniors, disabled residents, low income families, and children who rely on stable care, nutrition, and medical support. The entire purpose was to make sure no one fell through the cracks, especially those who cannot advocate for themselves. When fraud drains these systems, it is not just a financial loss. It directly harms the people who depend on these services to survive, leaving fewer resources for families in crisis and weakening the safety net that was meant to uphold basic human dignity.

Unfortunately, California also has faced enormous fraud across its own safety‑net programs, showing that this is not just a Minnesota problem but a national one which seems to be associated with incompetent governors like Tim Waltz and Gavin Newsom!

So how are they pulling this off?

Federal prosecutors report that 14 high‑risk Medicaid programs in Minnesota billed $18 billion since 2018 using these tactics:

• Fake clients who do not exist

• Inflated billing for services never provided

• Shell companies posing as healthcare or autism therapy providers

• Daycare centers claiming dozens of children who were never present

• Housing assistance providers billing for nonexistent services

• “Fraud tourism,” where people travel to Minnesota specifically to exploit loose oversight rules

Taxpayers deserve leaders who protect public funds, enforce real oversight, and put vulnerable Americans first, and voters have every right to choose new leadership if current officials fail to do so. It is time to demand accountability, strengthen our immigration system, and ensure that the needs of American families are prioritized.

California needs a change. Let's vote the democrats out and end one-party rule in 2026 and get some commons sense leaders elected to reverse the damage perpetrated by these incompetent people!

Carol Pefley
Candidate for Ca State Assembly