The scandal over alleged fraudulent billing within Minnesota’s Medicaid programs is reaching unimagined proportions, with Assistant United States Attorney Joe Thompson stating that the whole ordeal has cost U.S. taxpayers as much as $9 billion – nearly the entire GDP of Somalia, which sat at $11.97 billion in 2024.
During a press conference on Thursday, December 18, Thompson also described the situation as ‘industrial-scale fraud,’ claiming its effects could not be overstated.
“The fraud is not small. It isn’t isolated. The magnitude cannot be overstated. What we see in Minnesota is not a handful of bad actors committing crimes. It’s a staggering, industrial-scale fraud,” Thompson said.
As such, the issue has also intensified scrutiny on Minnesota’s broader political environment , including renewed attention on financial transparency and oversight issues involving high-profile lawmakers from the state, such as Representative Ilhan Omar.
Yesterday, Sunday, December 28, FBI Director Kash Patel likewise gave an update on the case, stating that the bureau had already increased personnel and investigative resources in Minnesota even before social media posts involving federal programs went viral.
CASE UPDATE: MINNESOTA FRAUD SCHEME
The FBI is aware of recent social media reports in Minnesota. However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes…
— FBI Director Kash Patel (@FBIDirectorKash) December 28, 2025
In a post on X, Patel highlighted prior federal action tied to the Feeding Our Future network, saying the FBI dismantled a $250 million fraud scheme involving federal food aid during the COVID-19 pandemic.
Minnesota fraud ‘just the tip of an iceberg’
Calling the current cases ‘the tip of a very large iceberg,’ Patel said the investigation remains ongoing and promised that the FBI would continue to protect children.
“The FBI believes this is just the tip of a very large iceberg. We will continue to follow the money and protect children, and this investigation very much remains ongoing. Furthermore, many are also being referred to immigrations officials for possible further denaturalization and deportation proceedings where eligible,” Patel wrote.
What’s more, he noted that some defendants had already been charged with attempting to interfere with the judicial process, including an alleged effort to bribe a juror with $120,000 in cash.
Those responsible, he said, have pleaded guilty and received sentences, including a 10-year prison term and nearly $48 million in restitution in related cases.
He added that, where appropriate under the law, some individuals are being referred to immigration authorities for possible further proceedings.
Featured image via Shutterstock
