Deputy Assistant Attorney General Colin M. McDonald of the Federal Department of Justice holds a press conference on the 21st (Thursday) to announce a fraud case discovered in Minnesota. [Reuters]

The U.S. Department of Justice announced on the 21st (local time) that 15 individuals residing in Minnesota have been indicted on charges of embezzling more than $90 million in taxpayer funds.

During a press conference, Colin M. McDonald, Deputy Assistant Attorney General of the Justice Department's National Fraud Section, stated, "This is not the end of what we are doing in Minnesota, but the beginning of what we will do. The fraud that has occurred in Minnesota is shocking."

He added, "What has been indicted today is unprecedented. This is the highest amount of loss claimed in a Minnesota state Medicaid case, and the largest autism fraud case prosecuted by the Department of Justice."

Deputy Assistant Attorney General McDonald pointed out that this case involved the systematic exploitation of Minnesota's support programs, treating them as personal piggy banks, in connection with seven different state Medicaid programs.

He explained, "One of those programs was completely eliminated because there was not a single penny of funding left. It all disappeared. This was the Housing Stability Support Services Program operated by the state of Minnesota, designed to help the homeless find housing."

The program, designed to provide $2.5 million annually in 2020, saw claims of over $104 million in 2024 due to fraud, a 50-fold increase. This fraud forced Minnesota to eliminate the program in 2025. These services for vulnerable people no longer exist.

A similar trend emerged in Minnesota's autism patient support program, which is funded by state taxes. Claims that were $6 million six years ago have skyrocketed to over $400 million.

Deputy Assistant Attorney General McDonald clarified, "Let me be clear, these figures are not due to supply chain issues or cost increases. It was due to fraud."

The public fraud case in Minnesota became a national issue after it was reported by independent journalist Nick Shirley. Shirley exposed that numerous fraudulent childcare facilities received public support despite little evidence of legitimate operations.

This reporting coincided with an increase in immigration enforcement in Minneapolis, Minnesota, and prompted increased federal scrutiny of public fund usage.

The press conference was also attended by Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz, who emphasized the seriousness of fraud in state Medicaid programs.

NNP Chief Editor Hong Seong-gu / Special Correspondent for this newspaper NNP info@newsandpost.com