Where fraud has been uncovered in other states: In-depth analysis
Feds share new numbers on MN fraud
Federal prosecutors shared new numbers on fraud in Minnesota, which could top $9 billion. FOX 9's Soyoung Kim has more.
(FOX 9) - At a press conference detailing new information and charges of fraud in Minnesota, First Assistant U.S. Attorney Joe Thompson said, "I think we're [Minnesota] an outlier in a bad way. Have I gone through (all) 50 states? No. But you don't see fraud on this scale in other states."
FOX 9 sought the records of fraud in other states to determine the scope and severity of the current schemes being uncovered in Minnesota.
The results show that Minnesota is not alone in being a target for bad actors.
Fact check: Fraud investigations in other states
What we know:
New York
In one of the largest cases of fraud in the U.S., 15 defendants were charged with health care schemes in June.
In the case, the individuals defrauded Medicare and Medicaid programs, and other health care benefit programs, to the tune of more than $10.6 billion.
Dubbed "Operation Gold Rush," it was the largest healthcare fraud case by loss amount ever charged by the Department of Justice.
Arizona
In 2023, federal authorities discovered a $2.5 billion Medicaid fraud scheme targeting Native Americans seeking treatment for addictions.
From 2019 to 2023, behavioral health providers and sober living homes inflated Medicaid payments. The investigation found many operators didn’t even provide the services they’d billed for.
Georgia
Investigators uncovered $463 million in fraud when a Georgia man submitted claims for genetic and other lab tests patients didn’t need. Those tests were procured through bribes and kickbacks.
The man was sentenced to 27 years in prison for his role in defrauding Medicare.
COVID-19 pandemic fraud
Dig deeper:
California
The most populous state in the country had COVID-era fraud cases larger than Feeding Our Future, including one that exploited the COVID-19 pandemic and allegedly resulted in over $490 million in COVID-19 related false billings.
In this case, 18 defendants were charged with defrauding the Health Resources and Services Administration COVID-19 Uninsured Program.
In 2023, another scheme in California that took place during the pandemic uncovered $230 million of fraud.
A doctor orchestrated the fraud on the Health Resources and Services Administration Uninsured Program, submitting fraudulent claims for treating patients.
Illinois
Earlier this month, two Illinois brothers were charged with defrauding Medicare, Medicaid and private health care insurers. They were also found to be laundering money.
"These defendants are charged with a brazen scheme to steal nearly $300 million from vital health care programs by taking advantage of the fear and panic of the COVID-19 pandemic," said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division.
COVID-era unemployment insurance fraud
By the numbers:
Another avenue of fraud during the pandemic was people taking advantage of unemployment insurance.
According to the Minnesota Department of Employment and Economic Development (DEED), data shows it paid out $16.4 billion in unemployment claims during the pandemic, of which less than 1% have been determined to be fraudulent.
Compared to other states and the nation as a whole, Minnesota was an outlier in lack of fraud.
The U.S. Government Accountability Office (GAO) says fraud accounted for 11% to 15% of the total amount of unemployment insurance benefits paid during the pandemic.
According to the GAO, $1 trillion went to unemployment benefits on a federal level during the pandemic, resulting in unemployment fraud between $100 billion and $135 billion.
In Kansas, a legislative audit found an estimated 25% of the $2.8 billion in unemployment benefits paid from January 2020 through February 2021 could have been fraudulent.
In Louisiana, officials found $405 million in fraudulent and ineligible claims were paid to more than 97,000 accounts, which is 17%of the $6.87 billion in pandemic unemployment relief payments.
Ohio had the same problem, with 13% of unemployment payments being fraudulent.
Alabama, California, Texas and several other states also found significant fraud in the program.