Minnesota Governor Tim Walz (DFL) has just signed an executive order that moves the Commerce Department's fraud investigators to the Bureau of Criminal Apprehension, and creating a centralized fraud investigations unit.
In announcing the move, Walz says the new office will streamline operations across state government, and is not expected to require any additional funding.
“Fraud against public programs is unacceptable, and Minnesotans rightly have no tolerance for it. That’s why I directed my state agencies to move quickly to establish a law enforcement unit dedicated to fighting and investigating fraud,” said Governor Walz. “As the state takes this critical step forward, I’m calling on the legislature to work together to pass a comprehensive package to prevent, detect, and put an end to fraud.”
Wals is also calling for the legislature to pass legislation to crack down on fraud against public programs, which he says in unaccpetable.
All of this comes as legislators, particularly Republicans, have made some of the more high profile fraud cases, beginning with the Feeding Our Future scandal, a top priority.
"Fraud and other financial crimes harm every Minnesotan,” said BCA Superintendent Drew Evans. “This new BCA unit will use its combined resources to go after criminals who are committing financial crimes, insurance fraud, wage theft, and fraud against Minnesotans and state government programs. The unit will help stop the people who commit these crimes from continuing to hurt our communities and hold fraudsters accountable.”
Republicans will also chair a committee to specifically to address the issue. That committee will have no subpoena power per the power sharing agreement worked out this week between House Democrats and Republicans.
Here are some of the details that came from the governor's announcement Friday:
Strengthened investigation and enforcement authority
Adding nine staff members to the Attorney General’s Medicaid Fraud unit.
Give agencies expanded authority to stop payments from going to people and entities suspected, charged, or convicted of fraud or financial crimes.
Better detection and oversight
Use artificial intelligence to detect and prevent fraud. MNIT will partner with industry experts to create a pilot that would analyze data to help detect and flag payment anomalies for Medicaid providers through the Department of Human Services (DHS).
Create a provisional license system for Early Intensive Developmental and Behavioral Intervention providers and require more frequent re-validation visits.
Add additional staff at Minnesota Management and Budget to help state agencies improve internal controls, mitigate risks, and build fraud awareness.
Add additional employees to expand DHS’s capacity to prevent and detect fraud and ensure proper billing.
Enhance oversight of Charter Management Organizations and tighten procurement and contract bidding integrity for Charter Schools.
Increased Criminal Penalties
Create a new “Theft of Public Funds” statute that increases criminal penalties by 20% compared to the existing “Theft” statute.
Make providing kick backs a state crime, and give the Attorney General investigative authority