May 25, 2026
Last week, the Department of Justice laid charges against 15 individuals accused of defrauding Minnesota’s Medicaid program out of $90 million. According to the DOJ, the charges involve seven different Medicaid programs. The suspects allegedly billed the state for programs that were never provided and used stolen money on real estate, cars, jewelry and other expensive items.
“Medicaid dollars are meant to support vulnerable Americans — not bankroll luxury cars and real estate empires for fraudulent providers who exploit people with disabilities,” said Dr. Oz, administrator for the Centers for Medicare and Medicaid Services (CMS).
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Among those charged were two defendants who allegedly defrauded a government program for autism out of approximately $46.6 million. Prosecutors allege the pair paid kickbacks to parents who brought their children in for care, falsified diagnoses and billed for services that were never provided. Federal officials say the case represents the largest Medicaid autism fraud prosecution in US history.
“These criminals exploited vulnerable children, stole taxpayer dollars, and diverted critical autism care and resources away from families who truly need support,” HHS Secretary Robert F. Kennedy Jr. said.
Another defendant has been accused of defrauding a program designed to help people with disabilities remain in their homes. The individual allegedly submitted false claims for people who needed 24-hour care. In one case, a patient was found dead just one day after being billed for a service that was never received.
Federal prosecutors also charged eight people tied to the now-shuttered Housing Stabilization Services program, meant to help seniors with disabilities find housing. The Department says fraud ran the program completely dry.
The charges come after the Department of Justice launched a fraud division at the start of April. An additional 15 prosecutors have now been assigned to investigate fraud nationwide.
Allegations of fraud in Minnesota
The latest crackdown came the same day the ringleader behind the $250 million Feeding Our Future fraud scheme in Minnesota was sentenced to more than 41 years in prison. Aimee Bock was accused of diverting tens of millions of dollars in funding meant to feed hungry children.
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Minnesota has been facing mounting scrutiny over fraud allegations after a social media video went viral late last year claiming widespread fraud in day cares in Minneapolis. President Donald Trump has since referred to Minnesota as a “hub of fraudulent money laundering activity.” In response, his administration has withheld $300 million in Medicaid payments to the state over concerns about fraudulent claims.
Federal prosecutors have estimated that fraud in the state could surpass $9 billion. Gov. Tim Walz, however, has disputed this claim, calling it “sensationalism” and added he has not seen evidence to back it up.
Minnesota is not the only state the Trump administration is going after for fraud. Earlier this month, CMS announced a $1.3 billion payment deferral for California, accusing the state of failing to adequately address fraud in hospice care programs. A nationwide requirement has also been issued for all states to provide a report on what their Medicaid fraud units are doing.
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The impact on taxpayers and patients
According to the National Health Care Anti-Fraud Association, taxpayers are estimated to be losing more than $100 billion a year to Medicare and Medicaid fraud. Defrauding the system can cause increased health insurance premiums, higher taxes and impact access to vital health programs.
For patients, the consequences can be especially severe when fraudsters use stolen identities to submit false claims. Victims may experience suspended or reduced benefits, inaccurate medical records, unexpected debt or incorrect tax documents. In some cases, fraudulent medical histories can interfere with future treatment options.
Patients have been advised to monitor their records, report any suspected fraud to state authorities and protect their personal information.
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Rinna Diamantakos is an assigning editor at Moneywise.com. A versatile journalist, she has experience as a writer, editor and producer. Her work has focused on politics, business and financial news.
