At a press conference On Thursday, Assistant Attorney General for National Fraud Control Colin McDonald announced that federal charges will be filed against 15 defendants accused of participating in fraudulent schemes in Minnesota. These individuals allegedly stole funds from Medicaid and other social service programs, resulting in losses of over $90 million.
McDonald alleged that at least seven government programs were “systematically stolen” by individuals for personal financial gain. These programs include the Early Intensive Developmental and Behavioral Intervention program, which is designed to provide medically necessary care to people under age 21 with autism spectrum disorder, the Child Care Assistance Program, and the Integrated Community Supports program, a Medicaid program designed to provide care to individuals as an alternative to assisted living.
According to McDonald et al Press release The charges brought by the Department of Justice (DOJ) include the two largest Medicaid fraud and autism fraud cases ever charged by the DOJ, as well as the largest damages award ever brought in a Medicaid case in Minnesota.
Acting Attorney General Todd Blanche stressed that this is just the beginning of the department’s work to hold “fraudsters” accountable, telling the conference that this is “just the tip of the iceberg” as the Justice Department continues to dismantle illegal schemes across the country.
These fees are part of the big one Nationwide action against fraudcharacterized by the creation of the National Fraud Enforcement Division and the skepticism that followed.
At the conference, McDonald explained that the DOJ’s Fraud Division has announced over 450 anti-fraud actions since April 1. Additionally, as part of an expansion of the Department’s Health Care Fraud Unit, funding was provided to hire over 15 new trial attorneys to prosecute fraud cases across the country.
However, this contradicts the Trump administration’s stance prior leniency against fraud, pardoning people convicted of schemes to commit fraud, or interfering in fraud investigations.
According to Centers for Medicare and Medicaid Services Administrator Mehmet Oz, $350 million in Medicaid funding in Minnesota is now being put on hold because of the fraud concerns until the state can justify the spending. In addition, the state is screening about 5,600 people to determine whether they are eligible to provide assistance to vulnerable people, which could result in about half losing their ability to provide services.
