MINNEAPOLIS – The Justice Department’s National Fraud Enforcement Division (Fraud Division), and the U.S. Attorney’s Office for the District of Minnesota announced a series of enforcement actions targeting fraud involving taxpayer-funded Medicaid and SNAP programs.
Between Sept. 30, and today, the Fraud Division and the District of Minnesota have charged, convicted, or sentenced 13 defendants whose alleged or proven schemes caused nearly $83 million in intended losses to the federal government, including approximately $29.1 million in fraud uncovered in the newly charged cases. This effort is a result of a partnership between prosecutors from DOJ’s Fraud Division and the U.S. Attorney’s Office. This year alone, the DOJ has issued over 1,000 subpoenas and executed over 40 premises warrants for the purpose of uncovering fraud in Minnesota.
“Minnesota is the epicenter for fraud in…
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.