Friends and neighbors,
Minnesota continues to face what seems to be the worst fraud epidemic in the nation. Week after week, new reports and federal prosecutions expose how deeply fraud has infiltrated our state agencies and how badly oversight has failed under this administration.
This November, Minnesota’s fraud crisis gained national attention. From major media coverage to a new investigation launched by the U.S. House Oversight Committee, the rest of the country is now seeing what Republicans have been sounding the alarm on for years: taxpayer dollars are being stolen at a massive scale, and the state is not doing enough to stop it.
One defense attorney representing multiple Feeding Our Future defendants summed up the problem perfectly:
“No one was doing anything about the red flags… they kept refilling the cookie jar.”
That is unacceptable...
Federal Actions and Case Updates
Federal prosecutors continue to bring charges in the Feeding Our Future scandal, including the 77th and 78th individuals tied to the scheme. One defendant in her 20s was sentenced to 10 years in prison and ordered to repay nearly $50 million after billing for millions of nonexistent meals.
Other high-profile cases this month included:
• A seven-year sentence for running a $6 million COVID loan fraud ring
• A Clay County man convicted of falsifying military service to steal VA benefits
• Former Clear Lake employees charged with embezzling more than $200,000
• A controversial ruling overturning a conviction in a $7.2 million Medicaid fraud case, now under appeal
This is just the tip of the iceberg. Federal investigators estimate the total amount lost to Minnesota fraud to be "in the billions of dollars".
Systemic Breakdowns Inside State Agencies
Investigations are now uncovering disturbing patterns inside the Department of Human Services including:
• Billing for services never provided
• Close-knit networks exploiting weak oversight
• DHS refusing to release names of suspected fraudulent providers
• Whistleblowers alleging retaliation when they raised alarms
One program alone, Housing Stabilization Services, grew from $2.6 million to over $100 million in payouts, with much of the spending suspected fraudulent.
Republicans warned this would happen. Democrats ignored the warnings.
What We Are Doing About It
As Vice Chair of the State Government Committee, I am working to:
- Strengthen oversight across all state agencies
- Protect whistleblowers who come forward
- Ensure every allegation of fraud is fully investigated
- Restore accountability for taxpayer money
- Drastically cut back on state spending
House Republicans are advancing legislation to close loopholes, increase transparency, and prevent these failures from happening again.
We owe it to the people of Minnesota.
Further Reading & Additional Resources
Minnesota GOP lawmakers request federal fraud investigation. (12) TIME overview of fraud allegations, Minnesota, and national rhetoric. (13) National commentary referencing Minnesota as a prime example of welfare-fraud vulnerability. (14)
(1) House Oversight Investigation: https://oversight.house.gov/release/chairman-comer-launches-investigation-into-massive-fraud-in-minnesotas-social-services-system-on-governor-walzs-watch/
(2) DOJ – FOF #77: https://www.justice.gov/usao-mn/pr/77th-defendant-charged-feeding-our-future-fraud-scheme
(3) DOJ – FOF #78: https://www.justice.gov/usao-mn/pr/78th-defendant-charged-feeding-our-future-fraud-scheme
(4) 10-year sentence: https://www.cbsnews.com/minnesota/news/feeding-our-future-fraud-48-million-restitution-sentencing/
(5) COVID-era loan fraud sentence: https://www.mprnews.org/story/2025/11/17/covid-loan-fraudster-gets-7-years-ordered-to-repay-35m
(6) Stolen-valor conviction: https://oig.ssa.gov/news-releases/2025-11-24-clay-county-man-found-guilty-of-%E2%80%9Cstolen-valor%E2%80%9D-and-140-000-in-benefits-fraud/
(7) Clear Lake embezzlement: https://www.mprnews.org/story/2025/11/19/ex-clear-lake-employees-charged-embezzlement
(8) Judge overturns $7.2M verdict: https://www.kare11.com/article/news/local/courts-news/hennepin-county-judge-tosses-out-jurys-guilty-verdict-in-72-million-home-healthcare-fraud-case/89-cbbdfb26-eb5d-40cc-8a19-a17c8602c8bf
(9) HSS “family affair” guilty plea: https://www.kare11.com/article/news/investigations/kare-11-investigates-fraud-was-family-affair-second-guilty-plea-in-minnesota-housing-services-fraud-probe/89-7efdbf14-00a7-44e7-843b-b9d92bcd10ef
(10) Medicaid provider transparency reporting: https://www.startribune.com/dhswontreleasemedicaidproviderfraudnames-working/600277864/
(11) PFML coverage: https://www.house.mn.gov/SessionDaily/Story/18762
(12) Minnesota GOP lawmakers request federal fraud investigation: https://kstp.com/kstp-news/top-news/minnesota-republican-lawmakers-call-for-federal-investigation-into-massive-fraud-in-state-programs/
(13) TIME fraud/TPS explainer: https://time.com/7337670/somalia-minnesota-fraud-walz-trump-tps-explainer/
(14) National commentary referencing vulnerability: https://www.washingtonpost.com/opinions/2025/11/22/welfare-fraud-is-far-too-common/
What's Ahead?
The upcoming legislative session will bring more committee work and continued pressure on state agencies to answer tough questions. As more prosecutions unfold, we will not let state leaders dodge responsibility for the culture of fraud that was allowed to grow under their watch.
Every stolen dollar hurts Minnesota families.
Every failure to act enables more corruption.
I will keep fighting to make sure state government protects your tax dollars and serves the people, not fraudsters.
Thank you for staying engaged in this important fight. We are going to get Minnesota back on track.
In service,
Rep. Ben Davis
Vice Chair - State Government Finance & Policy
Minnesota House of Representatives