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Minnesota fraud now under focus
The U.S. House oversight committee is investigating Minnesota's handling of fraud after federal prosecutors highlighted the potential of up to $9 billion stemming from programs throughout the state.
ST. PAUL, Minn. (FOX 9) - Minnesota is ramping up efforts to tackle fraud as it faces criticism from Congress and local communities.
State agencies coordinating efforts
What we know:
For the first time, Minnesota state agencies are working together to share information about vulnerabilities and tools to combat fraud.
The new approach aims to address fragmented systems that previously hindered effective data sharing, says Drew Evans, BCA superintendent.
"Sometimes we have fragmented systems that don't share data well across the enterprise. We've known that's a problem," said Evans.
The state began auditing 14 high-risk programs in October, and monthly meetings are now held to monitor fraud across agencies.
Evans emphasized the importance of identifying trends and issues early, stating, "You're identifying trends and issues that are being seen to get everybody on the front page before something replicates in another state agency."
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Gov. Walz responds to $9 billion fraud accusations
Gov. Walz responded on Friday to speculation from federal prosecutors that fraud throughout Minnesota’s service programs could total more than $9 billion. FOX 9’s Rob Olson has the latest.
Political and community response
Dig deeper:
The issue of fraud has become a focal point for political debate, with Republicans keeping it in the spotlight.
The U.S. House Oversight Committee recently requested interviews with seven Minnesota state officials to understand how fraud reached at least $350 million in ongoing investigations.
Additionally, 98 mayors expressed concerns about fraud impacting property tax rates in a letter, highlighting the financial burden on local communities.
James Clark, DHS inspector general, acknowledged past issues with business vetting and emphasized the state's progress in enhancing data analytics to suspend payments to providers when necessary.
State employees are now required to report any suspicions of fraud, and the BCA has received about 200 tips through an anonymous online portal. A meeting is scheduled for the new year to share information with federal prosecutors.
What we don't know:
The full extent of the fraud and how it compares to the $9 billion figure mentioned by federal prosecutors is still uncertain.