Federal prosecutors introduced new indictments Thursday within the widening Minnesota fraud scandal, this time involving two Philadelphia-based males accused of touring to Minneapolis after a buddy advised them the taxpayer-funded applications there offered “a great alternative to generate profits.”
Anthony Waddel Jefferson and Lester Brown are accused of siphoning hundreds of thousands from federally funded applications administered by Minnesota officers that have been meant to assist folks with disabilities and people affected by dependancy.
Not like lots of the people beforehand caught up within the state’s sprawling fraud scandal, they do not seem to have ties to Minnesota’s giant Somali-American group. Prosecutors say they do not seem to have ties to Minnesota in any respect.
“Minnesota has develop into a magnet for fraud, a lot in order that we now have developed a fraud tourism trade — folks coming to our state purely to take advantage of and defraud its applications,” stated Assistant U.S. Lawyer Joseph Thompson, who introduced the brand new expenses. “This can be a deeply unsettling actuality that every one Minnesotans ought to perceive.”
Court docket filings allege the lads submitted as much as $3.5 million in “pretend and inflated payments” for Medicaid reimbursements after they arrange an organization meant to offer housing and different providers to people who certified for this system. They allegedly fleeced the housing program in Minnesota regardless of “dwelling on the opposite aspect of the nation and having no community in or connections to Minnesota or its communities.”
In a separate indictment filed Thursday, a person allegedly registered an organization to assist channel state assets to the households of kids with autism. However the man, Abdinajib Hassan Yussef, allegedly spent a number of the $6 million he took from this system on the acquisition of a Freightliner semi-truck.
The brand new indictments got here because the Trump administration and its allies have stepped up assaults on Minnesota’s management, together with Gov. Tim Walz, who was the Democratic Occasion’s nominee for vp within the 2024 elections.
Walz has acknowledged his state fell quick in its fraud preventing efforts and listed a collection of steps he has taken to implement extra safeguards for taxpayer-funded social providers.
Throughout the previous week, the Trump-appointed heads of not less than three cupboard companies have signaled contemporary investigations into the state’s dealing with of federal funds — actions {that a} spokesperson for Walz known as “politically motivated” in an announcement on Wednesday.
“Whereas the governor has been preventing fraud, the Trump administration has spent the previous month sending dozens of letters, statements and social media posts full of threats to withhold funding and examine the state,” the spokesperson stated.
Minnesota shouldn’t be the one state to be hit by such crimes. Yesterday, federal prosecutors indicted two males in Massachusetts for stealing tons of of 1000’s of {dollars} in federal Supplemental Diet Help Program (SNAP) cash meant for needy kids.
However Thursday’s indictments in Minnesota have been the newest improvement in a string of multimillion-dollar fraud schemes which have plagued that state. Up to now, federal prosecutors have convicted 62 folks in connection to the scandal, which tops the record of the nation’s costliest COVID-era fraud sprees. Federal prosecutors estimate taxpayer losses exceed $1 billion.
The preliminary scheme concerned a nonprofit group that tricked state and federal officers into paying them to serve meals to 1000’s of hungry kids however by no means supplied the meals. That group, Feeding Our Future, allegedly raked in $250 million.
Extra fraud instances have since come into focus. This yr, in August, state officers shut down a housing program designed to assist seniors and folks with disabilities, citing “large-scale fraud.” In September, prosecutors charged eight folks with defrauding this system by enrolling as suppliers and submitting hundreds of thousands in “pretend and inflated payments.”
Additionally in September, an individual was charged with defrauding one other state program that gives providers to youngsters with autism. Her firm was accused of hiring unqualified “behavioral technicians” and submitting false claims to the state that indicated the workers had labored with kids enrolled in this system. She additionally allegedly paid kickbacks to oldsters who agreed to enroll their kids in this system.
The Treasury Division introduced it might examine whether or not any of the alleged fraudsters, a lot of whom are of Somali descent, funnelled cash to al Qaeda affiliate al Shabaab, which is predicated in Somalia. A number of federal investigators advised CBS Information there is no such thing as a proof taxpayer {dollars} ever went to al Shabaab, and prosecutors have but to current proof linking any of the fraudsters to terrorism.
“The overwhelming majority of the cash that these people made went to spending on luxurious gadgets for themselves,” stated Andy Luger, the previous U.S. Lawyer who prosecuted these frauds from 2022 till January.
CBS Information obtained dozens of recordsdata and pictures that reveal how some Minnesota fraudsters blew by way of hundreds of thousands in taxpayer {dollars}, spending it on vehicles, property, jewellery and luxurious journey. Movies present them popping champagne at an opulent Maldives resort. In a textual content message, one defendant boasts: “You’re gonna be the richest 25 yr previous InshaAllah [God willing].”
