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Federal Prosecutors: Minnesota Fraud Crisis Could Top $9B

Federal prosecutors allege half of $18 billion paid by 14 high-risk Minnesota Medicaid programs since 2018 was lost to fraud, impacting vulnerable populations.

  • On Thursday, federal prosecutors filed a new round of charges against Minnesota Medicaid providers, with First Assistant U.S. Attorney Joe Thompson estimating some $9 billion in claims may be fraudulent.
  • Weak oversight and rapid expansion in programs like Integrated Community Services, which grew from $4.6 million to $105 million by 2024, prompted the investigation, prosecutors said.
  • Abdinajib Hassan Yussuf, 27, is accused of inflating claims over $6 million via Star Autism Center, including $100,000 t for a truck and sending $200,000 t to Kenya.
  • Gov. Tim Walz ordered a third-party audit and appointed a director of program integrity, while state officials paused 14 programs and authorities served a search warrant on Ultimate Home Health Services Thursday.
  • Probes are ongoing and prosecutors expect more charges, warning alleged diversion harmed people at risk of homelessness and children with autism; more than a dozen defendants face charges so far.
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Duluth News TribuneDuluth News Tribune
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Gov. Tim Walz, DHS say they don’t have evidence to suggest fraud could reach $9 billion

ST. PAUL — Gov. Tim Walz and Minnesota Department of Human Services officials on Friday, Dec. 19, said the administration and agency don’t have evidence to suggest fraud could reach $9 billion. On Thursday, the U.S. Attorney's Office announced six new defendants in the latest wave of charges for Medicaid fraud in the state, also providing an update on its estimate of the scope of the state’s fraud — about $9 billion. First Assistant U.S. Attorne…

·Cherokee County, United States
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Fox News broke the news in New York, United States on Thursday, December 18, 2025.
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