[CTH] According to Assistant U.S. Attorney Joe Thompson, 14 Medicaid services currently under audit and deemed “high risk” have cost the state $18 billion since 2018. “I don’t make these generalizations in a hasty way,” he said. “When I say significant amount, I’m talking on the order of half or more. But we’ll see. When I look at the claims data and the providers, I see more red flags than I see legitimate providers.”
Thompson said during a press conference announcing new indictments that entire companies were created not to provide medical services but to pocket federal funds for international travel, luxury vehicles and lavish lifestyles. “The magnitude cannot be overstated,” Thompson said. “What we see in Minnesota is not a handful of bad actors committing crimes. It’s staggering, industrial-scale fraud.”
Thompson then outlined an industry of “fraud tourism” where some outsiders -specifically two from Philadelphia- even travelled to the state to participate in the financial windfalls. The scheme was “easy money,” he said.
Five new defendants have been charged in connection with a Minnesota housing services fraud, Thompson said. Two of them pocketed $750,000 instead of helping Medicaid recipients find stable housing, he said. Prosecutors allege they used the proceeds to travel to international destinations, including London, Istanbul and Dubai.
One defendant submitted $1.4 million in fraudulent claims, using some of the funds to purchase cryptocurrency, Thompson said. Federal officials say he fled the country after receiving a subpoena.
The five charged include two Philadelphia residents who have been accused of “fraud tourism” after they registered as Minnesota providers.
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