Walz Responds After FBI Launches Major Fraud

FBI Raids Minnesota Housing Program

FBI agents raided eight locations tied to five Twin Cities providers accused of fraud in the state’s Housing Stabilization Services program,

which helps seniors and people with disabilities find housing.

The warrants described the program as “extremely vulnerable to fraud.”

Walz Responds to Fraud Allegations

“If you’re going to commit these crimes in Minnesota, you are going to get caught,” Gov. Tim Walz told WCCO.

He said new safeguards and a new Inspector General are in place to prevent Medicaid fraud but added, “I wish we would have got a little more…

There are some AI tools out there that would help us on this.”

Widespread Oversight Concerns

Acting U.S. Attorney Joe Thompson warned of a “serious fraud problem,” while Rep. Kristin Robbins called the case an “enormous failure” by Walz’s administration.

“Minnesota expands unregulated Medicaid services and fraudsters jump in to exploit lax oversight,” she said.

Balancing Generosity and Security

“Minnesota is a generous state… But I’ve told our agencies…

we can have best intentions, but there are bad folks that are trying to do this,” Walz said.

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