Federal prosecutors have charged 15 individuals in Minnesota with orchestrating multiple healthcare fraud schemes that allegedly diverted more than $90 million in taxpayer funds from various state assistance programs.
The charges were announced Thursday by the Justice Department in a press conference that featured several federal officials. Colin McDonald, assistant attorney general in the national fraud enforcement division, described the case as involving Minnesota Medicaid programs that were systematically exploited by fraudsters. The charges represent the largest loss amount ever charged in a Medicaid case in Minnesota’s history.
The timing of the announcement coincided with the sentencing of Aimee Bock, founder of Feeding Our Future, who received nearly 42 years in prison for leading a scheme that targeted $250 million in taxpayer-funded child nutrition programs during the pandemic. Prosecutors characterized her crimes as having profound and immeasurable effects that would have lasting consequences for both Minnesota and the nation.
Minnesota U.S. Attorney Daniel Rosen acknowledged the significance of the Bock sentencing but emphasized that it represents only a fraction of the ongoing fraud in the state. He expressed belief that the Feeding Our Future case was merely the beginning of uncovering extensive fraudulent activities.
The newly announced charges encompass multiple state programs, including those providing grants to childcare providers, assistance for homeless residents securing housing, and medical services for individuals with autism spectrum disorder. According to McDonald, the autism-related fraud represents the largest such scheme ever charged by the Department of Justice, involving a clinic owner and employee who allegedly submitted over $40 million in fraudulent Medicaid claims.
Eight defendants face charges related to defrauding Housing Stabilization Services of nearly $16 million. This program was designed to assist people with disabilities, including seniors and those with mental illnesses, in finding housing. The extensive fraud forced Minnesota to close the program in October 2025.
To address the scope of the problem, McDonald announced that 11 strike force prosecutors from across the country have been deployed to Minnesota to pursue these cases. Additionally, a new nationwide Medicaid strike force team has been established to combat fraud across the country.
Federal prosecutors estimate that fraud in Minnesota could reach or exceed $9 billion. While Governor Tim Walz previously characterized this figure as speculation, McDonald suggested it might actually be an underestimate.
The Trump administration has prioritized fraud investigations as part of its second-term agenda, with particular focus on Somali-run daycare centers in the Twin Cities area. Last month, federal agents raided more than 20 Minnesota businesses, primarily targeting childcare facilities receiving federal funding.
One raided location was the Quality Learning Center, which had gained national attention after a YouTuber claimed to have uncovered millions in fraud at the facility. Dr. Mehmet Oz, the Medicaid Administrator, acknowledged the YouTuber’s contribution during Thursday’s press conference.
The federal government has announced plans to temporarily withhold $243 million in Medicaid funding, with an additional $91 million pending in April, citing fraud concerns. This action prompted legal challenges from the state. When questioned about Minnesota’s cooperation in providing reports related to the funding deferral, Oz indicated that the funds would have been released if the state had satisfied federal requirements.
Acting Attorney General Todd Blanche noted in a press release that at least one Medicaid recipient died as a result of fraudsters stealing taxpayer dollars while providing substandard care for children. He emphasized that the DOJ Fraud Division and the White House’s fraud task force would work to dismantle illegal schemes nationwide.
Governor Walz, who withdrew from his reelection bid this year amid scrutiny over social services fraud, has characterized the federal government’s focus on Minnesota as a campaign of retribution against political opponents. The outgoing governor announced an anti-fraud package for the state in February and maintains that his administration has spent years working to combat fraud despite federal criticism.
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