From the Daily Caller: Federal prosecutors alleged Thursday that Minnesota may have lost billions of dollars to fraud in its Medicaid program, the latest development in an ongoing investigation.
As much as half of the roughly $18 billion Minnesota has spent since 2018 on 14 Medicaid programs particularly vulnerable to abuse may have been siphoned off by fraudsters, according to U.S. Assistant Attorney Joe Thompson. Thompson made the remarks as prosecutors announced additional charges in the ongoing investigation of the “staggering, industrial-scale” fraud engulfing the state.
“The fraud is not small. It isn’t isolated. The magnitude cannot be overstated,” Thompson said.
“What we see in Minnesota is not a handful of bad actors committing crimes. It’s a staggering industrial-scale fraud. It’s swamping Minnesota and calling into question everything we know about our state.”
First Assistant U.S. Attorney Joe Thompson revealed that 14 state Medicaid programs have cost Minnesota $18 billion since 2018, including more than $3.5 billion in 2024 alone.
“Every day we look under a rock and find a new $50 million fraud scheme,” Thompson said. He compared the massive fraud to an iceberg, that’s much larger than what is visible to the public.
“The magnitude of the fraud in Minnesota cannot be overstated. It’s staggering amounts of money that have been lost,” says the Asst. US Attorney as MORE fraud is uncovered, bilking taxpayers out of billions.
All on @GovTimWalz‘s watch.
Walz is a menace to society. pic.twitter.com/CiTEtwLXTa
— Rapid Response 47 (@RapidResponse47) December 18, 2025
Thompson said out of the $18 billion, more than HALF was likely siphoned off by the fraudsters.
BREAKING: First Assistant U.S. Attorney Joe Thompson stated he believes “half or more” of the $18 billion spent on 14 programs likely represents fraud in Minnesota.
During the conference, he highlighted 14 programs, including autism and housing services, that are flagged as… pic.twitter.com/f7hkxpMlD0
— FOX 9 (@FOX9) December 18, 2025
The report identifies just some of those charged in the Minnesota fraud schemes:
- Anthony Waddell Jefferson and Lester Brown are accused of submitting roughly $3.5 million in false claims to the state’s Housing Stabilization Services (HSS) program. Federal officials allege the two men — both based in Philadelphia — set up companies to exploit Minnesota’s Medicaid system, committing what Thompson labeled “fraud tourism.”
- Also charged were Hassan Ahmed Hussein and Ahmed Abdirashid Mohamed, who prosecutors say submitted approximately $750,000 in fraudulent HSS claims through their company.
- Abdinajib Hassan Yussuf was charged with wire fraud in connection with the Early Intensive Developmental and Behavioral Intervention Autism program
WATCH the full press conference below, which took place on Thursday:
READ MORE from the Daily Caller.
Follow us on X (Formerly Twitter.)
The DML News App: www.X.com/DMLNewsApp
The Dennis Michael Lynch Podcast archive is available below, with the most recent on top. Never miss an episode. Subscribe to the show by downloading The DML News App or go to Apple Podcasts.
