The praise rolled in for the team working on Minnesota’s Housing Stabilization Services program.
Launched in 2020, it was designed to help people with disabilities, seniors and individuals struggling with mental illness and substance abuse find and keep housing.
But in just five years, demand for the Medicaid-reimbursed service had created a backlog within the state’s Department of Human Services (DHS). Employees working on the program were lauded for working overtime to clear it.
To reward their efforts, DHS paid bonuses to nine program staff and eligibility specialists, ranging from $1,000 to $2,000, according to data obtained by 5 INVESTIGATES.
Three months later, the program collapsed.
Citing credible allegations of fraud by dozens of providers billing the service, the state announced it would shut down the Housing Stabilization Services program. Federal indictments soon followed.
The…
This involves defrauding the state or using government systems to steal from individuals.
- Tax Identity Theft: A criminal uses your ID and income details to file a tax return in your name and claim a refund before you do.
- Grant/Benefit Fraud: Falsely claiming unemployment, disability, or social grants that the perpetrator is not entitled to.