|
FOR IMMEDIATE RELEASE
MEDIA CONTACT:
Caleb Jungling, 612.300.4202 (cell)
Caleb.Jungling@house.mn.gov
News Release
Statement from Chair Robbins on the Eight Indictments for Housing Stabilization Services Fraud
Today, federal prosecutors announced charges against eight individuals accused of fraud in Minnesota’s Housing Stabilization Services (HSS) program. Working through Brilliant Minds, Faladcare, Leo Human Services, and Liberty Plus, the defendants allegedly billed for services that were never provided, submitting fake records, inflating hours, and even billing after clients had died. In total, these providers received an estimated $8.4 million in program dollars. Instead of helping seniors, people with disabilities, and Minnesotans in recovery find stable housing, these individuals enriched themselves with luxury cars, overseas investments, and personal expenses.
In response to the news, Rep. Kristin Robbins (R-Maple Grove), Chair of the House Fraud Prevention and State Agency Oversight Committee, released the following statement:
“I’m grateful to our federal partners that are holding these criminals accountable. As Acting U.S. Attorney Joe Thompson said, the scope and depth of the fraud in Minnesota is so large that he has ‘literally run out of ways to express what is happening in our state and in our state programs.’ Governor Walz’s failure to hold his agencies accountable and stop fraud on the front end has enabled criminals to steal hundreds of millions of dollars from vulnerable Minnesota citizens and taxpayers.
As was highlighted by testimony in our Fraud Committee hearing yesterday, DHS ignored repeated credible reports of fraud. That failure shows that a culture of fraud has taken root in our state agencies. This is why we need a full federal audit of DHS so we can pinpoint where the failures of internal controls are happening and hold people accountable.
The Governor’s executive order yesterday does little to address this problem. Minnesotans deserve an independent office of inspector general within the executive branch with real investigative authority and subpoena power. Agencies have proven they cannot be trusted to police themselves; the fox cannot guard the hen house.
I will continue to work with my colleagues and our federal partners to fight fraud in Minnesota.”
###
|
|
2nd Floor Centennial Office Building
658 Cedar Street
Saint Paul, MN 55155
ph: 651.296.7806 |
|
|
|
