MINNEAPOLIS (FOX 9) – A group accused of running a sex trafficking ring in Hennepin County now faces additional allegations of Medicaid fraud, with investigators linking the scheme to millions in questionable billing.
Investigators detail how the operation worked and where the money went
What we know:
Investigators say 13 victims described being forced to pay for online ads and leave $100 in envelopes at homes in Minneapolis, St. Louis Park and Bloomington, many owned by Andrea Sampson. Prosecutors allege Frank Reeves led the operation, with Viktoriya Komonash and Katherine Thomes running websites and Sampson providing locations and helping set up shell companies to hide profits.
Drew Evans, superintendent of the Bureau of Criminal Apprehension, said, “This was a complicated scheme. This was a scheme that was designed not only to exploit the victims in these cases, take…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.