Today, the Trump Administration is taking a significant step towards combating fraud across the United States with the announcement of the creation of the Department of Justice’s new division for national fraud enforcement. This initiative aims to address the widespread and pervasive issue of fraud that affects various sectors, including Federal government programs, Federally funded benefits, businesses, nonprofits, and private citizens.
The newly established division will focus on enforcing both Federal criminal and civil laws against fraud. The Assistant Attorney General appointed for this division will spearhead efforts to investigate, prosecute, and remedy fraud that impacts the Federal government and its programs. This crucial role will involve overseeing multi-district and multi-agency investigations, providing expert advice to the United States Attorneys’ Offices on fraud-related issues, and collaborating closely with various Federal agencies to identify and dismantle sophisticated fraud schemes.
Moreover, the Assistant Attorney General will play a vital role in developing national enforcement priorities and may propose necessary legislative and regulatory reforms to close systematic vulnerabilities and prevent future abuses. They will also advise the Attorney General and Deputy Attorney General on significant, high-impact fraud cases and related policy matters.
The Department of Justice is currently engaged in extensive investigations into fraudulent activities occurring in several Minnesota programs. These include the State’s Feeding Our Future, Housing Stabilization Services, and Early Intensive Developmental and Behavioral Intervention programs. Notably, the DOJ is prosecuting the Evergreen Recovery Medicaid fraud defendants, charging a total of 98 individuals in Minnesota fraud-related cases, 85 of whom are of Somali descent. Of these, 64 have already been convicted.
To support these investigations, the DOJ has issued over 1,750 subpoenas, executed more than 130 search warrants, and conducted over 1,000 witness interviews. Some of the facilities featured in a viral video by Nick Shirley are under active investigation, with 13 defendants already charged for fraud linked to one of the buildings showcased.
The DOJ is doubling its resources in Minnesota, adding more attorneys to handle these fraud cases. The Federal Bureau of Investigation is also conducting investigations into numerous health care and home care providers in the state, utilizing forensic accountants and data analytics teams to identify potential links to elected officials and terrorist financing.
Additionally, the Department of Homeland Security has deployed approximately 2,000 agents for targeted, door-to-door investigations in Minnesota, resulting in over 1,000 arrests of criminal illegal aliens in recent weeks. As part of Operation Twin Shield, DHS identified more than 1,300 fraud cases based on site visits in Minneapolis and Saint Paul, with ongoing vetting for refugee status and potential denaturalization.
The Department of Health and Human Services has taken measures to freeze childcare payments nationwide, requiring detailed justification and evidence for all childcare-related transactions. They are enforcing a previously overlooked Federal law mandating immigration sponsors to repay Medicaid benefits utilized by sponsored immigrants. Furthermore, HHS is investigating fraud allegations against Minnesota’s Head Start programs involving illegal aliens.
In a significant move, the Centers for Medicare and Medicaid Services informed Minnesota Governor Tim Walz of a temporary halt on Medicaid payments to 14 programs flagged for fraud, waste, and abuse. This decision follows CMS's findings that the Minnesota Medicaid agency is in substantial noncompliance with Federal requirements.
Additionally, the Small Business Administration has suspended all annual grant payments to Minnesota and has barred 6,900 borrowers from future loan programs due to approximately $400 million in suspected fraudulent activity. The Department of Housing and Urban Development is also investigating potential housing-assistance fraud in the state.
Moreover, the Department of Labor has initiated a targeted review of Minnesota’s Unemployment Insurance program, while the Department of Agriculture is demanding recertification of Minnesota’s SNAP recipients to ensure compliance with eligibility requirements — a necessary measure that has faced legal challenges from state officials.
Through these comprehensive efforts, the Trump Administration aims to tackle fraud head-on, ensuring the protection of public funds and the welfare of citizens nationwide.