At a press conference on Thursday, Assistant Attorney General for National Fraud Enforcement Colin McDonald announced that federal charges were being brought against 15 defendants accused of participating in fraudulent schemes in Minnesota. These individuals allegedly stole funds from Medicaid and other social service programs accumulating over $90 million in losses.
McDonald stated that at least seven state-run programs were “systematically pilfered” by individuals for their own personal monetary gain. Among these programs are the Early Intensive Developmental and Behavioral Intervention program, designed to provide medically necessary care to those under 21 with autism spectrum disorder, the Child Care Assistance Program, and the Integrated Community Supports program, a Medicaid program intended to provide care to individuals as an alternative to assisted living.
According to…
This type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.