Minnesota Raids Uncover $41 Million Fraud Scheme; Officials Criticize Governor
FBI and Treasury officials announced 17 raids in Minnesota, leading to arrests in an alleged $41 million fraud scheme targeting federal health programs, with harsh criticism directed at state leadership.
Federal authorities have disrupted a significant fraud operation in Minnesota, announcing the results of 17 anti-fraud raids conducted Friday that led to the arrest of four individuals accused of stealing $41 million from federal health programs. FBI Director Kash Patel described the operation, which resulted in a 26-count indictment, as a success for the president and vice president's anti-fraud task force.
During a press conference in St. Cloud, Patel stated that three search warrants were executed at a child care center, two at the residences of the center's owners, and two more at an early intensive development and behavioral intervention unit in Minnesota. Treasury Secretary Scott Bessent, also present at the announcement, strongly criticized Minnesota Governor Tim Walz, labeling his administration as "woefully negligent" in its stewardship of public funds and accusing him of turning a blind eye to the alleged fraud.
Among those arrested are Feisal Elmi of Aspen Associates, an autism services provider, facing 11 counts of healthcare fraud for an alleged $8 million theft. Jama Mohamod of American Home Healthcare faces six counts of healthcare fraud totaling $3.27 million. Faiza Ahmed of Home Sweet Home, which allegedly billed for elderly and disabled care, faces eight counts for $10 million in alleged fraud. Habiba Mohammed of Smart Therapy faces one count of conspiracy to defraud the U.S. government of $20 million. According to officials, these individuals are accused of defrauding thousands of victims out of more than $41 million designated for those in need.
Vice President JD Vance was scheduled to attend the press conference but remained in Washington due to a scheduling conflict. Bessent specifically targeted Walz, who is not seeking reelection, for his role in what the Treasury Secretary termed an "industrial scale fraud" that "shamefully and perhaps knowingly allowed to fester" during his tenure, calling it the "defining legacy" of his administration.