Housing Stabilization Fraud
The most recent fraud case to be uncovered came this year in the state’s housing stabilization program. The program, launched in 2020, would help vulnerable individuals find and maintain housing. However, it was discovered many providers were charging the government for services they never provided to people.
Eight defendants have been federally charged with wire fraud for their roles in a massive housing stabilization fraud scheme.
This program, under the umbrella of the Minnesota Department of Human Services, was originally projected to cost about $2.6 million per year. By 2024, it spiked to $104 million in annual payments. DHS banned 115 individual businesses from billing Medicaid due to what the state labels "credible allegations of fraud". Then, on October 31, the Minnesota Department of Human Services announced it was terminating the program due to widespread fraud.
https://www.fox9.com/news/fraud-minnesota-detailing-nearly-1-billion-schemes