The FBI has “surged” investigative resources and personnel in their investigation into the wide-ranging fraud scheme in Minnesota. Homeland Security Secretary Kristi Noem calls it "widespread."
The fraud investigations have largely targeted Minnesota’s Somali community.
Trump administration officials have been steadfast in their claims that the scheme is largely run by the state's Somali community and that Governor Tim Walz is largely to blame.
Charges have been filed against more than 90 people who've been accused and in many cases convicted of swindling hundreds of millions of dollars from the state and federal government.
The governor's office is quoted as responding to this latest action by Fox News, saying the governor "has worked for years to crack down on fraud and asked the state legislature for more authority to take aggressive action."
On social media Monday, the Department of Homeland Security said the administration "is on the ground in Minneapolis, going DOOR TO DOOR at suspected fraud sites." They have posted a couple of videos to social media where agents are talking to people at various locations in the city.
"The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found," the DHS continues. "Under the leadership of Sec. (Kristi) Noem, DHS is working to deliver results."
Allegations of more fraud have been coming fast and furious over the last few weeks, since an announcement from the U.S. Attorney's Office that the total fraud in 14 of Minnesota's Medicaid programs could be as much as $9 billion.
"Homeland Security Investigations, ICE are on the ground in Minneapolis right now conducting a massive investigation on childcare and other rampant fraud. More coming," wrote Sec. Noem on social media Monday afternoon.
That figure of $9 billion is being disputed by Governor Tim Walz and other state leaders. However, First Assistant U.S. Attorney Joe Thompson said that federal officials suspect about half or more of the roughly $18 billion in claims paid out by Medicaid to 14 Minnesota-run programs since 2018 may have been fraudulent.
"Today’s charges are exactly the type of strong action we need from prosecutors to put fraudsters behind bars," Walz posted to social media after the charges were announced by the U.S. Attorney's office. "That’s why we shut down Housing Stabilization Services and hired an outside firm to audit these programs and stop payments to fraudulent providers. We will not tolerate fraud, and we will continue to work with our federal partners to ensure fraud is stopped and fraudsters are caught."
The chairman of a U.S. House Committee has also announced he is expanding the federal investigation into fraud within Minnesota social services programs, ramping up federal pressure on state leadership from Washington.
Five new defendants have been charged in connection with a Minnesota housing services fraud, Thompson said. Two defendants pocketed $750,000 instead of helping Medicaid recipients find stable housing, he said. Prosecutors allege they used the proceeds to travel to international destinations, including London, Istanbul and Dubai.