Home / Crime and Justice / Empty Offices Hide Minnesota's $1 Billion Fraud
Empty Offices Hide Minnesota's $1 Billion Fraud
13 Dec
Summary
- At least $1 billion lost to fraud in Minnesota.
- 22 fictitious companies billed $8 million from one building.
- Fraudulent addresses often led to abandoned spaces.
A sweeping fraud scheme in Minnesota has resulted in staggering losses for taxpayers, exceeding $1 billion. Investigations into programs like Feeding Our Future have uncovered a complex network of fraudulent activities, with numerous shell companies established solely to exploit the system. These entities collectively defrauded state and federal programs of substantial amounts.
Many of the addresses associated with these fraudulent claims led investigators to empty or nonexistent locations. The Griggs-Midway Building in St. Paul, for example, was the registered address for 22 fictitious businesses that collectively billed Medicaid for $8 million. An on-site inspection revealed large sections of the building were abandoned, underscoring the fabricated nature of these operations.
This pervasive fraud highlights significant oversight failures. Despite reports indicating that businesses did not exist at claimed locations, funds continued to be disbursed. The unfolding scandal involves multiple defendants and has raised serious questions about the accountability and effectiveness of oversight bodies tasked with protecting public funds.
