The Justice Department today announced the Minnesota Health Care Fraud Takedown, resulting in criminal charges against 15 defendants for their alleged involvement in various fraud schemes totaling over $90 million in intended loss, alongside a significant expansion of its Health Care Fraud Section to combat Medicaid fraud nationwide.
The charges target owners of child care centers and various Medicaid providers, encompassing the two largest Medicaid fraud cases ever in the District of Minnesota. Acting Attorney General Todd Blanche said, "Today, we are holding scammers accountable who ripped off the American taxpayer and harmed those deserving legitimate assistance from these programs."
Specific schemes include an approximately $46.6 million autism fraud, described as the largest in American history, where defendants allegedly paid kickbacks, misdiagnosed children, and billed for unprovided services. HHS Secretary Robert F. Kennedy, Jr. stated, "These criminals exploited vulnerable children, stole taxpayer dollars, and diverted critical autism care and resources away from families who truly need support."
Other significant charges involve a $1.4 million Integrated Community Supports (ICS) fraud, where a vulnerable recipient was found deceased after services were billed but not received, and a $22 million Individualized Home Supports (IHS) scheme involving concealed ownership of residences and luxury purchases. Additionally, eight defendants face charges for $15.7 million in Housing Stabilization Services (HSS) fraud, a program that was ultimately shuttered due to widespread abuse.
Child care programs were also targeted, with charges for a $425,000 fraud on the state-funded Great Start Compensation Support Payment Program and a $4.6 million fraud on the federally funded Child Care Assistance Program. FBI Director Kash Patel emphasized, "This FBI and our interagency partners have a mandate to investigate and systematically dismantle this exact kind of public fraud in America."
To bolster these efforts, the Justice Department is funding 15 new prosecutor positions and support staff to combat Medicaid fraud across the country, expanding the Health Care Fraud Strike Force program. Assistant Attorney General Colin M. McDonald said these prosecutors "will serve as a force multiplier for our existing Strike Forces to combat this critical new threat." This initiative supports President Donald Trump’s Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance.