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A Single Minnesota Building Was Linked to $380 Million in Medicaid Billing – How Was This Allowed to Happen? Minnesota governor Tim Walz faces difficult questions over unchecked fraud in the state.
International Business Times ^ | January 26, 2026 | Niloy Chakrabarti Niloy Chakrabarti

Posted on 02/01/2026 9:36:31 AM PST by grundle

In a startling development, a Minnesota building that was originally a linen factory is allegedly now housing around 400 Medicaid billing businesses. In a social media clip, Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services (CMS), revealed that these businesses billed approximately $380 million (£278 million) to Medicaid.

‘Behind me is the Griggs Midway building. It looks like a factory because it was a factory. Roughly 400 Medicaid businesses were started in the building behind me over the last several years,’ Oz said while standing alongside acting CDC Director Jim O’Neill outside the building in St. Paul.

Oz expressed serious concerns about the scale of potential fraud, given the building’s location within an industrial area. ‘You can’t imagine getting extra business support. An autistic child probably wouldn’t want to come here. You hear the noise. It’s just not a hospitable place. The question is, how is it possible 400 businesses, billing almost $400 million, were able to thrive here?’ he asked in his social media post.

Minnesota Governor Faces Difficult Questions

Oz was taken aback that state authorities seemingly overlooked the fact that an industrial complex could host and operate such a large number of Medicaid-billing entities.

‘How is it possible this could come up like an abscess in the heart of Minneapolis and nobody was watching? I think it’s because they weren’t looking. They didn’t want to know that there was a problem happening here. It’s very concerning to me that only now, when there’s more federal supervision, are people beginning to ask tough questions,’ Oz added.

The state of Minnesota has recently attracted scrutiny for several cases of fraud. One notable example is a $300 million (£219.5 million) pandemic-related fraud case involving the nonprofit Feeding Our Future. Prosecutors allege that it was the largest COVID-19 fraud case in the United States, with defendants misusing a federally funded programme designed to provide food for children.

Last week, the chair of the House Energy and Commerce Committee and two subcommittee chairs requested Minnesota Governor Tim Walz and the acting commissioner of the Department of Human Services, Shireen Gandhi, to share documents and communications related to alleged Medicaid fraud in the state.

Meanwhile, Oz expressed concerns during an interview about a long-standing ‘cover-up’. Walz acknowledged that Minnesota is grappling with a fraud problem, and that authorities are making progress in tackling it.

CMS Audits State Medicaid Programmes

House Committee on Energy and Commerce Chair Brett Guthrie, alongside Representatives John Joyce and Morgan Griffith, issued a joint statement: ‘The extensive fraud schemes being perpetrated in Minnesota have wreaked havoc on government-funded health programs. We have an obligation to ensure finite taxpayer dollars are being used responsibly, and that the most vulnerable Americans are not being exploited to the benefit of fraudsters and foreign actors.’

They further indicated that the fraud could have been ongoing since 2013, revealing multiple criminal schemes, including overbilling, false records, identity theft, and phantom claims within Medicaid social service programmes.

According to a recent press release, CMS is currently auditing the Minnesota Medicaid programme, freezing provider enrolment, and deferring payments for 14 programmes, which collectively cost taxpayers approximately $3.7 billion (£2.7 billion) annually. The officials also noted that the Trump Administration had taken significant steps to address the fraud issues in Minnesota.


TOPICS: Miscellaneous
KEYWORDS: aliens; billing; callingrico; democratcorruption; democratcrime; democratincompetence; democratparty; dflcorruption; dflpayoffs; dflracketeering; flansouthside; impeachflanagan; impeachwalz; medicaid; minnesota; minnesotafraud; somaliwarlordwalz; walz

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1 posted on 02/01/2026 9:36:31 AM PST by grundle
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To: grundle

Yeah but he’s quitting so you have to leave him alone.

Like that IRS lady who got to swim away.


2 posted on 02/01/2026 9:38:40 AM PST by Steely Tom ([Voter Fraud] == [Civil War])
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To: grundle

The “difficult questions” should be under oath in front of a grand jury with penalty of perjury.


3 posted on 02/01/2026 9:41:22 AM PST by glorgau
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To: grundle

If these ba$tards don’t go to jail, then there really is no justice in America anymore. All bets are off. How appropriate on the 250th Anniversary of the Founding of these nation. Looks like we’ll need another disturbance to get this country back on track, to make America truly great again.


4 posted on 02/01/2026 9:43:49 AM PST by john drake (Lucius Accius-Roman,170 BC - "oderint dum metuant" translated "Let them hate so long as they fear")
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To: grundle
How the hell hard would it be to run a database report of all the potentially fraudulent businesses by address and look at the density of businesses at each address, each street, each district?

Answer: Easy as hell. Anybody could do it. Pop the data into any GIS tool like ArcGIS, QGIS, GRASS GIS, SuperGIS, SAGA GIS, etc and get your answer. You'd get a heat-map like this showing where the potential fraud is.

Why wasn't this done? There is one obvious (and obviously true) answer. They did not want to show where the fraud is because Walz on down are on the take and they would expose their fraudulent voters.

5 posted on 02/01/2026 9:45:19 AM PST by ProtectOurFreedom
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To: grundle

And a lot of that lovely money was spent locally on small businesses and retailers. Why the massive electronic oversight system tracking international transactions failed to note that much money being spent in Somalia never detected it is open to serious question too.

I’d love to see an audit of the BIS.


6 posted on 02/01/2026 9:48:18 AM PST by Carry_Okie (The tree of liberty needs a rope.)
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To: grundle

When are they going to throw this Sad Sack, Sergeant Minor Walz’s ass in prison for what he has done?


7 posted on 02/01/2026 9:48:42 AM PST by FlingWingFlyer (Cheech Frey and his sidekick, Timmy Chong have turned Minniesomalia into a Cheech & Chong movie.)
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To: Steely Tom

“Yeah but he’s quitting so you have to leave him alone.

Like that IRS lady who got to swim away.”

***************

Walz has nothing to worry about. No way he’ll ever be held accountable, nor will his state be forced to pay any restitution to the taxpayers for the massive fraud that it allowed to be perpetrated. Walz may have to spend a lot on legal expenses, but that will all be reimbursed to him in one form or another.

Being a Democrat means never having to say you’re sorry.


8 posted on 02/01/2026 9:49:47 AM PST by Starboard
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To: ProtectOurFreedom; Red Badger

But if you drive down those two streets at “start of business” each morning, you will see empty sidewalks and locked down doors on abandoned dark businesses ...


9 posted on 02/01/2026 9:49:57 AM PST by Robert A Cook PE
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To: grundle

I don’t know why this is a mystery, all foreign programs are a washing machine for Democrats, so they just brought it home with the help of foreign illegals who think the washing machine plan is normal! We did it in their country, now welcome to the USA when the Democrats do it here!


10 posted on 02/01/2026 9:52:14 AM PST by Lockbox (politicians, they all seemed like game show host to me.... Sting)
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To: FlingWingFlyer

Allowing criminals like Walz to get away with these crimes is what has drawn all of the Somali criminal population to Minnisomalia. Minnesota. I’d like to know if Tiny Timmy Tampon was buying pallets of Tampons with the missing two billion taxpayer’s “money without guardrails”.


11 posted on 02/01/2026 9:54:07 AM PST by FlingWingFlyer (Cheech Frey and his sidekick, Timmy Chong have turned Minniesomalia into a Cheech & Chong movie.)
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To: grundle

All any fraud investigator worth his/her salt would have to do is obtain the financial transactions of these 400 “businesses” to see how much money was transferred back to the DNC, Demonic Party political candidates, extended family’s business, etc. Then charge the entire Demonic cabal with fraud, conspiracy, money laundering, etc. .. SO WHY ISN’T ANYONE DOING THIS?


12 posted on 02/01/2026 9:56:12 AM PST by Common Sense 101
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To: grundle

There is federal activity in Minnesota.
There is federal activity in Atlanta.

The mid-terms are this year, and we will lose the mid-terms unless we get arrests and trials for Democrat fraud — monetary and electoral. We cannot delay action forever; we are either going to do something or we are going to do nothing when it comes to Democrat corruption. We cannot investigate this thing for the next 5 or 10 years. The time is now.


13 posted on 02/01/2026 9:58:31 AM PST by ClearCase_guy (Law and Order -- only one of our political parties believes in it.)
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To: Starboard

How corrupt is that?! Very!


14 posted on 02/01/2026 10:01:31 AM PST by No name given ( Anonymous is who you’ll know me as )
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To: glorgau

I couldn’t agree more.


15 posted on 02/01/2026 10:02:04 AM PST by No name given ( Anonymous is who you’ll know me as )
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To: All

Somali collusion, corruption and thievery made a Minnesota building----originally a linen factory---- into 400 fraudulent Medicaid billing businesses. The thieving Somali businesses fraudulently billed some $380 million to Medicaid, as Democrat Gov Walz looked on.

16 posted on 02/01/2026 10:03:44 AM PST by Liz (Jonathan Swift: Government without the consent of the governed is the very definition of slavery.)
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To: All

In fiscal year 2024, state Medicaid Fraud Control Units (MFCUs) reported 1,151 convictions for fraud, with many of these involving felony charges for false billing. These convictions resulted in $1.4 billion in recoveries.

Key details regarding felony charges for false Medicaid billing:

In FY 2023, MFCUs reported 1,143 convictions, with 814 specifically for provider fraud and 329 for patient abuse or neglect.

Definition of Fraud: False billing includes billing for services not rendered, upcoding (billing for a more expensive service than provided), double billing, and billing for medically unnecessary tests.

Penalties: Falsely billing Medicaid is a serious crime that can result in up to 20 years in federal prison per offense, depending on the severity and whether it results in bodily injury.

Financial Consequences: Individuals convicted can face fines up to $250,000, while organizations may face up to $500,000 per offense. Additionally, the False Claims Act allows for civil penalties ranging from roughly $11,000 to over $21,000 per false claim, plus triple damages. A conviction typically leads to a minimum five-year exclusion from participating in federal healthcare programs.

While many cases are prosecuted as felonies, particularly large-scale or repeated fraud, some smaller, less severe cases may be charged as misdemeanors.


17 posted on 02/01/2026 10:11:16 AM PST by Liz (Jonathan Swift: Government without the consent of the governed is the very definition of slavery.)
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To: Liz

Are your statistics for the whole country?


18 posted on 02/01/2026 10:22:19 AM PST by Steve_Seattle1
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To: Steve_Seattle1

Yes


19 posted on 02/01/2026 10:27:31 AM PST by Liz (Jonathan Swift: Government without the consent of the governed is the very definition of slavery.)
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To: Lockbox

I believe the Dems recruited them into this nefarious scheme. Obama started the “fundamental transformation,” the “refugee” BS enabled the Dems to bring them here, their piracy days on the high seas were numbered, and those damn Somali’s needed a new scam.

The Dems told them “We’ve got just the thing for you. Come on in under TPS and we’ll train you and give you the tools to run the scams. All you need to do is pay us a 50% vig and get your community to vote “D” forever.


20 posted on 02/01/2026 10:38:01 AM PST by ProtectOurFreedom
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