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Friday, November 6, 2026

Minnesota Prosecutor EXPOSES $302M Housing Fraud As FBI RAIDS Homes & “Fraud Tourists” Plead Guilty


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A Minnesota Medicaid program meant to help seniors and people leaving rehab find a home was expected to cost about $2.6 million a year. Instead it paid out more than $300 million. Federal prosecutors say much of that money went to companies billing for help nobody received.

Acting U.S. Attorney Joseph Thompson called the fraud “staggering” and said charges are coming in waves. In this video we follow the Housing Stabilization Services case step by step:

Hundreds of new providers signing up almost overnight, many out of one St. Paul office building Claims for meetings that never happened, backed by forged signatures A shared credit card with nearly half a million dollars in charges, plus trips to London, Sydney, Istanbul and Dubai Two Philadelphia men who flew in, billed $3.5 million and admitted using AI to fake records FBI and federal agents carrying evidence out of homes, and the state finally shutting the program down in 2025

Presumption of innocence

Defendants who have not pleaded guilty or been convicted are presumed innocent until proven guilty in court.

Sources

U.S. Attorney’s Office, District of Minnesota; IRS Criminal Investigation; HHS-OIG; FBI Minneapolis; KARE 11; FOX 9.

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