The Trump administration is taking action to combat massive fraud within federal public assistance programs. On Wednesday, the White House shared a statement in response to the shocking daycare fraud operation uncovered by independent journalist Nick Shirley. The statement assured that people guilty of fraud would be held accountable and detailed the actions being taken by the Department of Justice.
“The videos from Nick Shirley have shed tremendous light on the situation in Minnesota, and the Department of Justice will continue to lead the effort to identify and prosecute fraud,” the White House statement said.
According to the White House statement, the Department of Justice (DOJ) is pursuing fraud charges in a broad range of public assistance programs. DOJ efforts have reportedly resulted in charges brought against 98 defendants in fraud cases related to Medicaid and other programs, and 64 convictions through either trials or plea deals. Among those charged, 85 were of Somali descent.
The DOJ reports that further investigations into fraud cases are underway, including the issuance of 1,750 subpoenas, the execution of 130 search warrants and interviews with over 1,000 witnesses.
The DOJ’s investigations have revealed fraudulent activity that extends far beyond the infamous Minnesota daycare scandal. Programs that provide food, housing and disability assistance and have all been identified by the DOJ as potential targets for millions of dollars in fraud.
Feeding Our Future, one of the programs identified by the DOJ, was reportedly the target of $300-$400 million worth of fraud by people who falsely claimed to serve free lunches to children during the COVID pandemic. In addition, the Housing Stabilization Program, which is designed to find housing for seniors and people struggling with disability or addiction, has been identified by the DOJ as a potential source of $200 million in fraudulent spending.
The DOJ also cited Autism EIDBI as a program that was targeted for up to $700 million of fraud in the Somali community through diagnoses and kickbacks paid to autism clinics, and Evergreen Recovery, a Minnesota drug and alcohol recovery program that was subjected to $30 million in fraud through the billing of Medicaid and other programs.