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How Relaxed COVID-Era Rules Fueled Minnesota's Biggest Scam
Politicszerohedge1mo ago

How Relaxed COVID-Era Rules Fueled Minnesota's Biggest Scam

How Relaxed COVID-Era Rules Fueled Minnesota's Biggest Scam Authored by Kristin Robbins via RealClearPolitics, In my testimony before the Senate last week as chair of the Minnesota House Fraud Prevention and Oversight Committee, I outlined the genesis of Minnesota’s massive fraud scandal, how it expanded under relaxed COVID-era rules, and what steps the federal government can take to help stop the theft of federal tax dollars throughout the country.   Minnesota’s fraud crisis didn’t happen overnight; it took years. But it exploded when COVID hit, right when oversight was thrown out the window. How did Minnesota get so bad? In March 2020, Democrat Rep. Ilhan Omar authored a bill called the MEALS Act, which eventually became part of a larger COVID relief package. That law allowed states to waive the normal eligibility requirements for the National School Lunch Program. It eliminated income requirements and site inspections and expanded distribution methods. This opened the door for Feeding Our Future, which became the largest COVID fraud scandal in state and national history, stealing at least $250 million from taxpayers. To date, there have been 78 indictments and 61 convictions, with more cases headed to trial this spring. This was organized, deliberate theft, enabled by weak controls, refusal to take multiple reports of fraud from whistleblowers and the legislative auditor seriously, and a government culture that refused to treat fraud like a crime. The Feeding Our Future case revealed something even more disturbing: As many as half of the defendants were also receiving state money through other Medicaid-funded programs. But even after that became public back in 2023, Tim Walz and his agencies did nothing to stop those defendants from receiving additional state dollars. Billions of federal COVID dollars didn’t start the staggering fraud in Minnesota, but that did supercharge a system that had already been compromised. The original fraud scandal was tied to the Child Care Assistance Program, a federal program meant to help low-income families with children. There had been allegations of fraud reported with CCAP since 2011. By 2014 and 2015, there were raids, charges, and convictions of child care providers for billing non-existent or absent children, often exceeding $1 million in fraud in a single case. Then in March and April of 2019, just months into the Walz administration, the legislative auditor published two major reports outlining CCAP fraud. Those reports detailed fraudulent providers and alleged movement of millions of dollars in cash out of Minnesota to Somalia, including allegations that some of that money was funding terrorism. Whistleblowers have told us that shortly after those reports were released, the Department of Human Services shut down the criminal investigation unit for child care fraud. Rather than pursuing fraud as a crime, the Walz administration began renaming fraud as “overpayment.” Cases were routed to an internal “overpayment committee” to decide whether reimbursement should even be pursued. Staff were no longer allowed to speak with their counterparts at the Bureau of Criminal Apprehension without supervisor approval. Our committee has now uncovered fraud in multiple Medicaid programs, including autism centers, sober homes, non-emergency medical transportation, integrated community supports, and housing stabilization services. In December, we held a hearing on credible allegations of fraud in two additional areas: adult day services and assisted living facilities. We have now seen allegations of fraud in 14 Medicaid programs. It is staggering. The former first U.S. attorney who led these prosecutions estimated fraud at $9 billion, and that doesn’t include fraud in SNAP or child care programs. Minnesotans expect their tax dollars to go toward roads, schools, health care, and public safety, not to fund criminals purchasing resorts in Kenya and luxury homes and cars. Even more alarming are the allegations that Minnesota taxpayer dollars have made their way into the hands of terrorist organizations like Al-Shabaab, directly or indirectly. The money is literally flown out in suitcases from the Minneapolis-St. Paul Airport. In 2017, estimates suggested $100 million in cash left annually. According to TSA, outbound cash was $342 million in 2024 and $350 million in 2025. That is astonishing. And it is wildly disproportionate compared to other airports. Minneapolis’ outbound cash is 99% higher than Dallas, Atlanta, LAX, and JFK, and 90% higher than Seattle. So where do we go from here?  Minnesotans are right to be outraged, and I hope other states learn from Minnesota’s failures. We need a culture that treats fraud as a crime, not as “overpayment.” We need to standardize and enforce basic internal controls. Both federal and state government need to require documentation, not attestation, to verify eligibility. We need more audits and stronger oversight. We need the federal government to enforce existing laws requiring states to pay back funds within one year when fraud or “overpayment” is found. We need more resources at the U.S. Attorney’s Office and CMS to investigate these cases. And we need stronger federal authority to track and investigate large sums of cash leaving our country. We need leaders willing to stand up to this injustice and protect the most vulnerable. Citizens in Minnesota and throughout the country deserve better. The time for accountability and justice is now. Kristin Robbins has served in the Minnesota House of Representatives since 2019 and is chair of the Minnesota Fraud Committee. Tyler Durden Wed, 02/18/2026 - 09:40

Amid Minnesota Fraud Scandal, Legitimate Autism Centers Face Closure
HealthThe Independentzerohedge1mo ago2 sources

Amid Minnesota Fraud Scandal, Legitimate Autism Centers Face Closure

Amid Minnesota Fraud Scandal, Legitimate Autism Centers Face Closure Authored by Troy Myers via The Epoch Times (emphasis ours), A Minnesota autism center for adults and children, which has been operating for more than 20 years, is facing closure in the wake of the massive fraud scandal in the state that dates back more than a decade and involves more than $9 billion of U.S. taxpayer money. The Holland Center in Minnetonka, Minn., on Feb. 11, 2026. Larson told a House subcommittee hearing on Jan. 21 that her center and numerous others in Minnesota are facing collapse after becoming collateral damage from the massive fraud scandal. Adam Hester for The Epoch Times The Holland Center is one of many legitimate centers in the state, which collectively serve thousands of disabled people. Founder, owner, and CEO Jennifer Larson built the Holland Center for her autistic, non-speaking son, who is now 25 years old. She said she has recently been forced to put hundreds of thousands of her own dollars into keeping the center afloat because the state didn’t pay a single claim for nearly two months. Because of the payment delays, Larson said autism centers like hers are being forced to reduce hours, cut staff, and close in some instances. Families are scrambling for help, disabled children and adults are regressing, and parents are leaving jobs to care for their disabled loved ones. Larson told The Epoch Times her facility can’t continue much longer. “The feds say it’s the state. The state says it’s the feds,” Larson said. “The kids are going to be the collateral damage.” The U.S. Department of Health and Human Services paused child care and family assistance funds to Minnesota in early January due to the alleged rampant fraud. The state is appealing. The Minnesota Department of Human Services told The Epoch Times via email that the federal government’s threat of withholding funds is “not impacting the current payment situation.” However, Larson’s center accumulated nearly two months of unpaid claims from Dec. 5 to Jan. 29, totaling more than $600,000. Minnesota Gov. Tim Walz speaks during a press conference at the state Capitol building in St. Paul, Minn., on Feb. 3, 2026. Beginning in late December 2025, the state began using a new pre-payment review vendor called Optum, which uses artificial intelligence in its claims and reimbursement processes. Stephen Maturen/Getty Images ‘Everything Was Flagged’ Beginning in late December 2025, the state began using a new pre-payment review vendor called Optum, which uses artificial intelligence (AI) “at every step” of its claims and reimbursement processes. Minnesota Gov. Tim Walz had announced the contract with the new system in late October 2025. “They implemented it because of the fraud. Obviously, the state wasn’t catching the fraud in the 300 or 400 centers that popped up in the last three years,” Larson said. She blames the Minnesota government for turning a blind eye to the “crime ring” involving fraud at Somali-run autism centers to an immense scale. Neither Walz nor his office could be reached for comment during multiple attempts via emails and phone calls. Now, she said, Optum is causing the delay of claims with few or unclear explanations in the review process. “The state has failed and lost millions and millions of dollars in the system, so, clearly, the state wasn’t going to be able to tell Optum what to look for because they didn’t know what they were doing,” Larson told The Epoch Times after she recently testified in Congress. “All of us, for the first round, nobody got anything. Everything was flagged.” Larson told a House subcommittee hearing on Jan. 21 that her center and numerous others in Minnesota are facing collapse after becoming collateral damage from the massive fraud scandal. Rep. Tom Tiffany (R-Wis.) asked Larson: “Ms. Larson, none of this would have happened if the fraud did not occur, is that accurate?” “Yes,” she responded. “What happened in Minnesota had nothing to do with the ethical, longstanding autism providers.” Larson said in her testimony that the state government’s “clumsy response” to fraud failed to distinguish between criminals and caregivers. She said abrupt disruption or loss of service can destroy weeks or years of progress for disabled children and adults, causing lifelong consequences. Payment Process The Minnesota Department of Human Services told The Epoch Times that it sent the first batch of more than 100,000 claims to Optum for review in late December 2025. The department said every two weeks, Optum receives batches of claims from the state. The system analyzes and flags any that need further review. Unflagged claims are paid after the initial analysis, the Minnesota Department of Human Services said. The agency will continue sending payments for unflagged claims on regular two-week cycles. A provider will receive an update every two weeks on a flagged or suspended claim, accompanied by reason codes, the department said. “If a claim is flagged, we may need additional information and documents from the provider before payments are made, which may cause further delay,” the Minnesota Department of Human Services said. Claims in Optum are listed as suspended until the state reaches a payment decision. The department did not provide detailed answers on why the Holland Center or other similar, longstanding facilities might have their claims flagged. Jennifer Larson, founder and CEO of the Holland Center, and her son Caden Larson in Minnetonka, Minn., on Feb. 11, 2026. Larson built the center for her autistic, non-speaking son, who is now 25 years old. Adam Hester for The Epoch Times The agency said it did not wish to disclose what kind of identifiers cause it to suspect someone is billing for services they did not provide, but officials generally look for “patterns of concern—claims that fall outside expected norms,” some of which could be blamed on administrative errors or poor documentation rather than intentional fraud. “Optum helps the state of Minnesota identify potential fraud, waste, and abuse by conducting pre‑payment reviews,” the company said in an emailed statement to The Epoch Times. “Optum has no authority to approve, deny, delay, or suspend claims, and payment decisions are made exclusively by [the Minnesota Department of Human Services] and the Office of Inspector General.” Most claims should be paid within 30 days, and legitimate claims that may have been flagged within 90 days, as required by the federal government, according to the agency. Financial Hit Meanwhile, with a payroll of $250,000 every two weeks, Larson has been forced to ask many of her employees to take unpaid leave. After nearly two months of unpaid claims, her center was partially paid on Jan. 29, bringing the owed amount down to about $300,000, Larson said. She said there’s been little to no word from state or health officials on why her claims were flagged in the first place. Larson doesn’t expect to get another payment for two weeks, putting her in a several-hundred-thousand-dollar deficit she doesn’t think will ever rebalance. She’s spent so much of her own money to keep the center’s lights on, Larson said, that she’s been forced to cut back on other bills to make ends meet. Fortunately, Larson said her landlords have been understanding of the situation. New Centers Years ago, when Larson witnessed new autism treatment centers popping up around her area and the state, she was initially relieved because, to her, it meant more help was coming for disabled children and adults. “There’s a need, and there’s a high prevalence of autism in the Somali community in Minnesota,” Larson said. “And I know that and I service a lot of the kids, but we can’t take them all. We’ve always had a waiting list.” A 2023 study by the University of Minnesota showed autism rates in 4-year-olds to be much higher among Somali children compared to other races and ethnicities. The report found 1 in 18 Somali children had autism, compared to 1 in 64 for white children, 1 in 31 for Hispanic children, and 1 in 30 for non-Somali black children. But when hundreds of autism centers popped up, it was a red flag for Larson. “No one wants to talk about it because everyone’s scared of saying anything wrong,” Larson said. “That’s why we’re here. It’s because everyone’s too afraid to say something.” Independent journalist Nick Shirley, who brought national attention to the alleged Minnesota fraud at day care centers with his viral video posted Dec. 26, 2025, attended the congressional hearing with Larson. “What we saw in Minnesota is how complicit the government has been in enabling this fraud to happen. Quality ‘Learing’ Center had over 90 violations, yet they continued to give that daycare $1.9 million,” Shirley said in his testimony. Meanwhile, the closure of Holland Center would dismantle a lifetime of work for Larson that all started with the birth of her son. Read the rest here... Tyler Durden Thu, 02/19/2026 - 20:55