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Whistleblower Alleges $9 Billion Fraud at Minnesota DHS

2/7/2026

Summary

Story summary

Faye Bernstein, a Minnesota Department of Human Services (DHS) employee for two decades, raises concerns about incompetence within DHS amid a fraud investigation.
She says up to $9 billion was stolen through entities posing as daycare centers and clinics, mainly affecting the Somali community.
Despite reporting issues, she faced retaliation.
DHS states Minnesota's Medicaid has a lower improper payment rate than the national average and is committed to fighting fraud.

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Story summary

Faye Bernstein, a Minnesota Department of Human Services (DHS) employee for two decades, raises concerns about incompetence within DHS amid a fraud investigation.
She says up to $9 billion was stolen through entities posing as daycare centers and clinics, mainly affecting the Somali community.
Despite reporting issues, she faced retaliation.
DHS states Minnesota's Medicaid has a lower improper payment rate than the national average and is committed to fighting fraud.