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Massive Fraud Probe Expands: $9 Billion Possibly Stolen

12/24/2025

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Prosecutors Expand Fraud Investigation

Federal prosecutors expanded their fraud investigation into Minnesota's social services to cover 14 Medicaid-funded programs, up from three.
They estimate that more than half of the $18 billion in funding allocated since 2018 may have been stolen.
Prosecutors charged six additional individuals, bringing the total charged in the case to 92.
Two new defendants from Philadelphia engaged in “fraud tourism,” traveling to Minnesota for leniency in fraud cases.
The White House has taken notice of the investigation amid rising concerns about the scale of the fraud.

Right

Loeffler Halts Funding

The Small Business Administration (SBA) has halted more than $5.5 million in federal support to Minnesota.
SBA Administrator Kelly Loeffler criticized Gov. Tim Walz for not protecting taxpayer dollars.
Loeffler cited potential losses of up to $9 billion from fraudulent claims linked to the Somali community.
The House Small Business Committee is investigating the disbursement of pandemic relief funds.

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Prosecutors Expand Fraud Investigation

Federal prosecutors expanded their fraud investigation into Minnesota's social services to cover 14 Medicaid-funded programs, up from three.
They estimate that more than half of the $18 billion in funding allocated since 2018 may have been stolen.
Prosecutors charged six additional individuals, bringing the total charged in the case to 92.
Two new defendants from Philadelphia engaged in “fraud tourism,” traveling to Minnesota for leniency in fraud cases.
The White House has taken notice of the investigation amid rising concerns about the scale of the fraud.

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