Midwest
Minnesota fraud whistleblower says ‘lack of guardrails was pretty shocking’
NEWYou can now listen to Fox News articles!
A Minnesota woman employed by the state’s Department of Human Services is speaking out against what she describes as incompetence within the department following the discovery of rampant fraud in the state’s healthcare system.
Faye Bernstein told the City Journal in an interview that she first began to realize the high risk of fraud at Minnesota’s DHS in 2018 and 2019 following a promotion to a lead position.
“Over the years, I had often thought that DHS is sloppy,” she said. “But 2018 and 2019 are when I saw, oh gosh, this is beyond normal. If we don’t have fraud today, we’re going to have fraud soon.”
Bernstein has been a DHS employee for two decades, working in contract management and as a compliance officer, she told the outlet. In her lead position, she said she was able to see all the contracts being worked on by those in her division and witnessed conflicts with the contracts that could be deemed risky.
MINNESOTA ‘ON THE CLOCK’ AS HHS THREATENS PENALTIES OVER CHILDCARE FRAUD SCANDAL
The Minnesota Department of Human Services building in St. Paul. (Michael Siluk/UCG/Universal Images Group via Getty Images, File)
“I was aware that our contracting processes were leaving us completely open to fraud,” Bernstein said. “But to realize the lack of guardrails was pretty shocking.”
Federal prosecutors estimate that up to $9 billion was stolen through a network of fraudulent fronts posing as daycare centers, food programs and health clinics. The majority of those charged, so far, in the ongoing investigation are part of Minnesota’s Somali population.
Homeland Security investigators were part of a large fraud investigation last month in Minneapolis following the release of a video alleging daycare fraud. (Department of Homeland Security)
When she tried to report the issues at the time to her deputy director, Bernstein said she was told to stop asking questions. Bernstein said she felt retaliated against after most of her duties were reassigned and was eventually “shuffled from one job to another.”
HOUSE REPUBLICANS CALL MINNESOTA FRAUD PROBE ‘TIP OF THE ICEBERG’ AS MORE BLUE STATES FACE SCRUTINY
“Even our human resources people would tell us, ‘If your supervisor tells you to do something, you must do it.’ And when you didn’t, the word ‘insubordination’ came up,” she said. “They considered it insubordinate if you resisted an unlawful direction.”
Bernstein told the outlet that she has been going through emails received beginning in 2024 from members of the public warning about the alleged fraud.
“I was really surprised at how much notification we had,” she told the outlet. “Did we really ignore all those people writing in? Members of the public had advised us of this [alleged fraud] in email after email after email.”
TRUMP ADMIN PUTS MINNESOTA ON NOTICE, MOVES TO AUDIT MEDICAID AND CLAW BACK FUNDS TO PROTECT TAXPAYERS
The state’s DHS on Friday said that recently released federal data shows Minnesota’s Medicaid program has a significantly lower improper payment rate than the national average, with an error rate of just over 2.1%, compared with a national average of 6.1%.
State officials also noted the data was collected before Minnesota began rolling out additional measures aimed at reducing fraud risk.
“We’re committed to making Minnesota a national model for preventing fraud and catching errors,” said Shireen Gandhi, the state’s interim human services commissioner. “This review shows we have strong internal controls that we continue to improve, and we are not stopping there as we accelerate our efforts to fight fraud.”
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Bernstein, who said she has only voted Democratic, said the fraud was genuine and not partisan politics.
“This is definitely not something that the Republicans are making up,” she said. “This is real.”
Fox News Digital’s Alex Miller contributed to this report.
Read the full article from Here
ROCHESTER, Minn. (FOX 9) – A man from Illinois is facing felony charges after police say he took part in a scheme that convinced a Rochester resident to hand over thousands of dollars in cash and nearly fell for a gold bar handoff.
Rochester phone scam
What we know:
According to a criminal complaint filed in Olmsted County District Court, police say the victim was contacted by phone and told he was under investigation for a crime. The caller convinced him to deliver $30,000 in cash to a man he met in person on June 17, 2026.
The victim was then pressured to arrange a second delivery — this time, 10 one-ounce gold bars — on June 23, 2026. Detectives worked with the victim to set up a controlled delivery using fake gold bars and a GPS tracker.
Charges state that the plan was for the victim to meet whoever arrived to pick up the package, while officers watched nearby. Surveillance officers saw a white SUV with Illinois plates circling the parking lot at 2711 Commerce Drive NW in Rochester.
The complaint states a man, later identified as Kiranbhai Kanubhai Vasava, got out, met the victim, gave the password and took the package. Officers followed the car as it left the scene. Detectives stop suspects and recover cash
Why you should care:
Police stopped the SUV near Eyota and searched it, finding $50,000 in cash, several cell phones, bank checks with Vasava’s name, and packaging materials similar to those used for the fake gold bars. The package with the GPS tracker and fake gold was missing, but officers later found the GPS device torn apart on the side of the highway.
The second man in the car, Hemendrasinh Pravinsinh Dabhi, told police he got a call from India about a package but claimed he knew nothing about it, saying, “he just drives.” Vasava also denied knowing what was happening.
Kiranbhai Vasava linked to Wisconsin case
The backstory:
The complaint states detectives linked Vasava to another similar case in Stevens Point, Wisconsin, where a bank customer was convinced to hand over $50,000 in cash to a driver in a white Honda SUV. Video from that incident showed Vasava receiving the package.
Police say this type of swindle involves convincing victims they are under investigation and must pay money or hand over valuables to clear their name. Detectives say the investigation involved coordination between local police and law enforcement in Wisconsin.
The Source: Criminal charges filed in Olmsted County Court.
KOSCIUSKO COUNTY, Ind. (WSBT) — It’s fair season and a new law uncorks adult beverage sales!
The new Indiana law will go into effect July 1st, making it legal to sell alcohol at county fairs.
The Kosciusko County Fair is set to kick off in just a few weeks and Indiana is officially allowing alcohol to be sold.
The law is bringing back something that’s not necessarily new to this fair.
Here’s what you need to know
The new law will go into effect on July 1st. It officially allows county fairs to apply for fee-free permits to sell alcohol.
Officials with the Kosciusko County Fair say they are participating this year. They are implementing the same guidelines they used when they sold alcohol just at grandstand events.
The difference now is, you can walk around the grounds with your drink. But strict guidelines will be in place for purchasing a drink.
“Actually, we’ve never had any issues. Because we card everybody, so we take that seriously. We also got the ID guides so we can identify the different types of IDs,” said Sheal Dirck, Treasurer of Kosciusko County Fair.
The Kosciusko County Fair already have guidelines in place, so this was an easy transition for the fair.
They will be the only vendors selling alcohol, which will make it easier to control distribution.
The sales will also bring in more revenue.
“Hopefully it allows to keep our ticket prices where they are because right now, insurance, utilities and everything else is going sky high and it’s hard to make ends meet,” said Dirck.
However, some fairs cannot participate because of the July 1st start date, like the Pulaski County Fair, which is going on right now. Pulaski County officials said it is on the agenda for next year. Whereas other fairs are choosing to sit this year out.
“We wanted not spend some time to, to see what that really means for us. It was not a decision we wanted to rush into. But we are happy for the option of it,” said Shelly Steury, GM of Elkhart County 4H Fairgrounds.
Leaders at the St. Joseph County and Elkhart County Fairs said neither of them are selling alcohol.
The Kosciusko County Fair is the only fair that will sell alcohol in our area this year.
IOWA CITY, Iowa (KCRG) -Water and wastewater utility rates in Iowa City will increase starting July 1, following a city council decision on May 19.
The water utility rate will increase by 3%, while the wastewater rate will increase by 5%.
The increases are part of a funding model to help recover the costs of providing water and wastewater services to Iowa City residents.
The new rates will take effect in tandem with Iowa City’s 2027 fiscal year and apply to customers served by the Iowa City Water Division and the Iowa City Wastewater Division.
The city said the rate adjustment supports its continued provision of safe and reliable water service.
To learn more about the city’s utilities, visit their website.
Copyright 2026 KCRG. All rights reserved.
-
Connecticut7 minutes agoWorkers say violent disturbances followed staffing shortages at CT youth psychiatric facility
-
Delaware10 minutes agoThousands moving to Delaware County fuels need for more housing
-
Florida15 minutes agoAerial photos show sprawling algal blooms. What causes them in Florida?
-
Georgia22 minutes agoGeorgia election bill deadlines: New law delays ballot QR code removal
-
Hawaii25 minutes agoHawaii overpays SNAP benefits by nearly 10% in 2025
-
Idaho30 minutes agoIdaho woman finds love on reality TV’s ‘Farmer Wants a Wife’
-
Illinois37 minutes agoIllinois man charged after Rochester sting catches phone scammer with $50K in cash
-
Indiana40 minutes agoNew law allows alcohol at participating county fairs in Indiana
