MN Dem Sen candidate in hot seat over upcoming event hosted by man enveloped in fraud scandal: 'Red flags' (Flanagan)

Minnesota Lt. Gov. and Democratic Senate candidate Peggy Flanagan is set to attend a fundraiser hosted by an individual who has served as the state’s Medicaid medical director during a time period where Medicaid fraud exploded onto the national scene.

Dr. Nathan Chomilo has served as Minnesota’s Medicaid medical director since January 2020 and is listed as one of the hosts of an October 1 fundraiser supporting Flanagan, first reported by Townhall’s Dustin Grage.

Much of Minnesota’s broader fraud scandal has centered on Medicaid-funded programs, including autism services and Housing Stabilization Services, and although Chomilo was not the official responsible for processing payments, investigating fraud or overseeing the department’s program-integrity operations, the optics of Flanagan associating with him is sparking skepticism about Flanagan's commitment to tackling the fraud issue.

"Apparently, the people who were supposed to be watching the money are too busy raising it for Peggy Flanagan," Grage posted on X. "This should raise some serious red flags."

"Things that make you go hmm… ," Chuck Darrell, former communications director at Minnesota Family Council posted on X.

"The number one thing going on with Minnesota's Medicaid program has been fraud over the last eight years of the Walz Flanagan administration," Minnesota Republican State Rep. Kristin Robbins told Fox News Digital. "So he must have been aware. He must have known and clearly he had oversight responsibilities. He probably should have been held accountable for what was going on in the program and instead he's raising money for Penny Peggy Flanigan."

Minnesota’s Medicaid (called Medical Assistance) program has faced extensive scrutiny
and major federal and state fraud crackdowns targeting high-risk social and health services.

Investigations center around vulnerable state programs—such as Housing Stabilization Services (HSS), Autism services (EIDBI), and integrated community supports—that prosecutors allege have been exploited on an “industrial scale” due to historical gaps in guardrails and fragmented databases.

Federal Actions and Withholdings: The DOJ and the FBI have expanded the Health Care Fraud Midwest Strike Force into the region. In January 2026, the Centers for Medicare & Medicaid Services (CMS) notified state leadership of substantial noncompliance regarding anti-fraud controls, moving to withhold portions of federal matching funds.

State Legislative Response:

Minnesota passed the bipartisan Medical Assistance Protection Act, expanding Attorney General Keith Ellison’s investigatory powers, lengthening statutes of limitations, and increasing criminal penalties for high-dollar fraud.

Major Enforcement Cases

May 2026 Takedown: The DOJ announced a major health care fraud takedown resulting in criminal charges against 15 defendants involving over $90 million in intended losses across multiple schemes, including the largest individual Medicaid fraud cases charged in the district.

Artificial Intelligence Schemes: Federal prosecutors secured guilty pleas from four men who defrauded the Housing Stabilization Services program out of $2.2 million, notably utilizing artificial intelligence tools to fabricate fake compliance records when questioned by insurance entities.

Recent Arrests and Overbilling: Federal authorities arrested multiple residents over a $21 million multi-year pandemic-era scheme, and state health investigations have flagged group home operations—such as facilities linked to overseas directors—for mathematically impossible shift-billing claims. -—— mn.govFact check

Federal prosecutors state that a large number in Minnesota's major
welfare and pandemic relief fraud schemes are Somalians.

The Feeding Our Future Scandal involved dozens of Somalians charged in a $250 million
federal child nutrition program fraud scheme during the COVID-19 pandemic.----DOJ----

Federal authorities arrested hundreds of Somalian
thieves wrt a $21 million multi-year pandemic-era scheme.

State health investigations have flagged group home operations
—-----facilities linked to overseas directors—-------
for mathematically impossible shift-billing claims. -——mn.govFact check

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