The FBI executed search warrants at eight locations across the Twin Cities, targeting five service providers accused of billing Medicaid for services that were either not provided or grossly misrepresented. Authorities say the alleged schemes exploited a program meant to protect some of the state’s most vulnerable residents.
Governor Walz, who has been outspoken on the issue of fraud in Minnesota’s social programs, stressed that his administration is working closely with federal authorities.
“If you’re going to commit these crimes in Minnesota, you are going to get caught,” Walz said in an interview with WCCO last month.
He added that new oversight mechanisms have been implemented, including the appointment of a new Inspector General and updated tools to detect Medicaid abuse. However, he admitted that the state still needs more advanced resources to stay ahead of increasingly sophisticated fraud schemes.
“I wish we would have gotten a little more out of this legislative session,” Walz noted. “There are AI tools out there that could help us detect fraud earlier and prevent it from happening in the first place.”
Acting U.S. Attorney Joe Thompson confirmed that Minnesota is facing a serious and systemic fraud problem, echoing concerns raised by his predecessor, Andrew Luger. Thompson said the generosity of Minnesota’s safety-net programs can make them a target for abuse.
“The Housing Stabilization Services program has proven to be extremely vulnerable to fraud,” Thompson said, emphasizing that investigators will continue to follow the evidence wherever it leads.
The targeted locations reportedly included facilities in
Walz acknowledged that Minnesota’s long-standing reputation as a generous state sometimes leaves it open to exploitation.
“We want to make sure children get food and families have housing support,” Walz said. “But good intentions don’t protect us from bad actors. That’s why we need to remain vigilant and ensure that every dollar goes to those who truly need help.”
The FBI has not announced any arrests yet, but sources familiar with the investigation say indictments could follow as prosecutors review the evidence gathered during the raids. If the fraud allegations are proven, those involved could face significant federal charges, including wire fraud and Medicaid fraud, both of which carry steep penalties.
Meanwhile, Walz pledged that his administration will continue tightening oversight, investing in modern detection tools, and working with federal agencies to close loopholes.
“This is about protecting the people who rely on these services,” Walz said. “We will not tolerate anyone who tries to cheat the system at the expense of vulnerable Minnesotans.”
Mayoral frontrunner Zohran Mamdani is challenging President Trump to face off in a televised debate — calling out the White House for trying to get involved in the heated race.
The dare came after ex-Gov. Andrew Cuomo called on the Queens socialist to debate him five times — once in each borough — during a press conference Thursday.
“Let’s cut out the middle man,” Mamdani told The Post. “Why should I debate Donald Trump’s puppet when I could debate Donald Trump himself?”
Mamdani, who beat Cuomo in the June Democratic primary, accused Trump of trying to meddle in the election, rehashing claims that the two men had talked over the phone about the mayoral race.
Sources also said Wednesday that White House officials were mulling possible job offers in the administration for Mayor Eric Adams and GOP nominee Curtis Sliwa in an effort to get them to drop out.
That would arguably give Cuomo, the highest-polling contender after Mamdani, a leg up to beat the far-left lawmaker in the crowded November contest.
“If Donald Trump is serious about intervening in the mayoral race, he should come to New York City and debate me directly about why he’s cutting SNAP benefits for hungry New Yorkers to give tax breaks to his wealthy donors,” said the DSA candidate.
The White House did not immediately respond to a request for comment.
Cuomo, earlier Thursday, ripped Mamdani for refusing to take part in mic-fights being floated by PIX11 and CBS News.
“New Yorkers deserve answers. I challenge him to five debates, one in every borough where we speak about the issues in that borough,” he declared.
But Cuomo brushed off questions by PIX11 about whether he’d participate in a debate with just Sliwa and Adams.
“You know my position, and you know Eric Adams’ position, and you know Curtis Sliwa’s position,” Cuomo said.
Mamdani told voters in a video Wednesday that he would not be participating in debates outside of the two scheduled by the city’s Campaign Finance Board for October.
“In the meantime, I won’t be at this televised circus,” Mamdani said.