New Fraud Division Announced
The Trump Administration has unveiled a new division within the Department of Justice (DOJ) aimed at tackling fraud across the nation. This initiative will target fraudulent activities affecting federal programs, funded benefits, businesses, nonprofits, and everyday citizens.
An Assistant Attorney General will lead this division, overseeing investigations and prosecutions related to fraud. This role involves collaborating with various federal agencies and U.S. Attorneys to dismantle organized fraud schemes and develop strategies to prevent future abuses. They will also advise on significant fraud cases and work on policy reforms to close loopholes.
Actions Taken in Minnesota
In Minnesota, the DOJ is currently investigating numerous cases of fraud related to state programs, including Feeding Our Future and Housing Stabilization Services. This effort has led to 98 charges against individuals, 85 of whom are of Somali descent, with 64 already convicted. The DOJ has issued over 1,750 subpoenas, executed more than 130 search warrants, and interviewed over 1,000 witnesses in connection with these investigations.
A viral video by Nick Shirley highlighted some of the fraud schemes, many of which are now under investigation. The DOJ is increasing resources, doubling the number of attorneys dedicated to these cases.
Additionally, the FBI is examining health care and home care providers suspected of fraud, employing forensic accountants to dig deeper into potential wrongdoing. The investigations may even extend to connections with elected officials or terrorist financing.
The Department of Homeland Security has sent approximately 2,000 agents to Minnesota for targeted investigations. They’ve made over 1,000 arrests in recent weeks, as part of ongoing operations aimed at cutting down on fraud and illegal activities.
The Department of Health and Human Services has frozen childcare payments, requiring proof for all transactions. They’ve also implemented measures to ensure immigration sponsors repay Medicaid benefits utilized by immigrants and are examining Head Start programs for possible fraud. The Centers for Medicare and Medicaid Services have paused payments to certain programs in Minnesota amid concerns over compliance with federal rules.
The Small Business Administration has stopped annual grant payments in Minnesota, suspending 6,900 borrowers due to around $400 million in suspected fraudulent activities. Meanwhile, the Department of Housing and Urban Development is also investigating potential fraud in housing assistance.
Further scrutiny comes from the Department of Labor, which is reviewing the state’s Unemployment Insurance program, while the Department of Agriculture has mandated recertification for SNAP recipients to ensure compliance with eligibility requirements.
Fraud is a significant issue affecting many facets of society, leading to a loss of trust in programs designed to help people. These federal actions underscore a determined effort to address and reduce fraud on a national scale.
