"The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action. He has strengthened oversight including launching investigations into these specific facilities, one of which was already closed. They added that Walz has hired an outside firm to audit payments to high-risk programs, shut down the Housing Stabilization Services program entirely, announced a new statewide program integrity director, and supported criminal prosecutions."
"The statement came after FBI Director Kash Patel announced a surge of federal resources into Minnesota, calling it part of a broader effort to dismantle large-scale fraud schemes exploiting federal programs. Federal investigators now estimate that as much as $9 billion, roughly half of the $18 billion granted to Minnesota since 2018, could have been siphoned off through fraudulent operations."
A viral 43-minute investigation prompted scrutiny of numerous childcare and learning centers in Minneapolis that allegedly received millions in public funds despite appearing closed or denying access. The governor emphasized years of anti-fraud work, increased oversight, investigations of specific facilities, hiring an outside firm to audit payments, shutting the Housing Stabilization Services program, appointing a statewide program integrity director, and supporting prosecutions. Federal authorities announced a surge of resources and estimated up to $9 billion potentially siphoned from $18 billion in grants since 2018. As of the weekend, 86 people have been charged and 59 convictions secured.
Read at www.mediaite.com
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