Tag: fraud

MASSIVE FRAUD PROBE: HHS Auditing All 50 States Following Shocking, Nationwide Explosion in Medicaid Autism Billing — Taxpayer Dollars Drained by ‘Bad Actors’

In a massive, long-overdue crackdown on government waste and rampant abuse, the Department of Health and Human Services (HHS) has officially put all 50 states on notice.

As The Gateway Pundit previously reported, a federal HHS Office of Inspector General audit found Colorado made at least $77.8 million in improper fee-for-service Medicaid payments for Applied Behavior Analysis (ABA) therapy for children diagnosed with autism in 2022-2023 alone.

Every single one of the 100 sampled enrollee-months contained at least one improper or potentially improper claim. Auditors flagged another $207+ million in potentially improper payments.

Similar horror shows hit Wisconsin ($18.5 million improper), Indiana, and Maine, with confirmed improper payments across audited states totaling around $198 million (roughly 31% of the spending reviewed in those samples).

The Department of Homeland Security’s Homeland Security Investigations (HSI) has arrested two Muslim women in Minnesota for defrauding American taxpayers of more than $21 million through a brazen scheme targeting the state’s autism services program.

Now the feds are going nationwide.

CMS has issued a direct call to all 50 states to re-evaluate high-risk ABA providers, remove illegitimate ones, and report back with plans to clean house. States have tight deadlines — 10 business days to respond and 30 days for a full strategy.

This comes alongside the new AERO initiative (Audit Enforcement and Risk Oversight), which is using AI and aggressive follow-up to finally hold states accountable for years of ignored audit failures and chronic noncompliance across HHS programs.

The spending numbers are insane and demand scrutiny:

  • In North Carolina, Medicaid ABA spending surged from roughly $1.9 million just five years ago to over $505 million in 2025 — with projections blasting past $1 billion soon. Some reports flag increases in the thousands of percent.
  • Across eight states with available data, combined Medicaid autism therapy spending exploded from $347 million to over $2.2 billion in recent years — a 561% increase.
  • Minnesota saw one of the most grotesque spikes: from under $700,000 in 2018 to $342+ million by 2024 in its EIDBI autism program.

Keep reading

Food Stamp Fraud Pipeline Exposed: U.S. Taxpayer-Funded Groceries Shipped Overseas And Sold For Profit

Food stamps and food pantries are intended to keep struggling Americans fed.

What we found is that, in some communities, that food never reaches an American table. Instead, it gets shipped overseas and sold for profit.

The scheme works like this. Residents in cities like Lawrence, Massachusetts collect food through two channels: purchasing it at local markets using EBT cards, and picking it up for free from food banks and churches. That food is then packed into large blue barrels, dropped off at shipping companies, and sent by container ship to the Dominican Republic. Once it arrives, it is sold for profit in local stores. The people doing this see nothing wrong with it. In many cases, they do it openly.

According to a local that assisted us with this story, this fraud has been happening for over a decade.

Over the course of several weeks, Muckraker Foundation traced the full pipeline from food pantry lines in Lawrence, Massachusetts, through shipping warehouses in New York, to store shelves in Santo Domingo. This is what we found.

Lawrence, Massachusetts

Lawrence is a small city about 30 miles north of Boston. It has the highest concentration of Dominican immigrants of any city in Massachusetts, and the highest rate of SNAP enrollment in the state.

John has been delivering goods in Lawrence for over 11 years, six days a week, 35 stops a day. He knows the community intimately.

“I’ve been witnessing the Dominican residents going to food bank lines and collecting non-perishable goods,” he told us, “and then packing it in barrels and in boxes, and then they ship it back to the Dominican Republic.”

Keep reading

SBA Administrator Kelly Loeffler Reveals $200 BILLION in Fraudulent PPP Loans Were Hidden by Biden Admin – “People Are Going to Jail”

Small Business Administration (SBA) Administrator Kelly Loeffler revealed during a White House cabinet meeting on Wednesday that her agency has uncovered staggering amounts of fraud, including $200 billion in fraudulent Paycheck Protection Program (PPP) loans that the Biden regime kept hush-hush. 

“We found $200 billion in fraudulent PPP loans that the Biden administration tried to hide and forgive and sweep under the rug,” she said.

Amid discussions about fraud and Vice President JD Vance’s Task Force to Eliminate Fraud, Loeffler made the stunning announcement.

As The Gateway Pundit reported, President Trump went off on the Somali fraudsters in Minnesota and Somali Rep. Ilhan Omar for pillaging the US Treasury. He further suggested that even more fraud has been discovered that will shatter the earth.

“In two months, we’ve exposed 10s of billions of dollars of defrauded taxpayer money, prosecuted numerous fraudsters,” he said.

“You haven’t seen anything yet,” Trump added. “Wait till you see. I’m getting reports from Todd, from JD. I’ve never seen anything like it.”

Keep reading

HORROR: Vice President Vance Tells Story of Elderly Man Who DIED From Neglect as Medicaid Fraudster Got Rich Neglecting Him

Vice President JD Vance on Tuesday told a horrifying story about how fraud affects the most vulnerable among us while speaking at an anti-fraud roundtable, revealing that an elderly man was killed due to a Medicaid fraudster’s neglect. 

Vance, the Chairman of the White House Task Force to Eliminate Fraud, and Federal Trade Commission Chairman Andrew Ferguson, the Task Force Vice Chair, held a roundtable on Tuesday with over a dozen State Attorneys General to discuss the Trump Administration’s nationwide crackdown on federal benefits fraud.

After brief remarks from the White House officials, they held a private meeting with the Attorneys General.

Before closing his public remarks, Vance emphasized that the fraud schemes “are not victimless crimes,” reminding the country of what consequences fraud victims could face, including death.

In a recent indictment in Minnesota, Vance said, a man who was being reimbursed by the Medicaid program to provide services to elderly patients, “was providing nothing, no services, no help, no check-ins.”

Because of this, one of his patients under his watch died “after months of being neglected by the caretaker who was getting reimbursed by the American people.”

Still, one day before the man died, the fraudster submitted another reimbursement for “services he never provided for a man he never cared for.”

Keep reading

Vice President JD Vance Says White House Anti-Fraud Task Force Has Identified Tens of Billions in Fraud – At Least $135 billion Stolen Since COVID

Vice President JD Vance on Tuesday spoke at an anti-fraud roundtable with state attorneys general and White House officials, where he told reporters that his team has identified staggering amounts of fraud totaling tens of billions of dollars.

Vance, the Chairman of the White House Task Force to Eliminate Fraud, and Federal Trade Commission Chairman Andrew Ferguson, the Task Force Vice Chair, held a roundtable on Tuesday with over a dozen State Attorneys General to discuss the Trump Administration’s nationwide crackdown on federal benefits fraud.

After brief remarks from Vance, Ferguson, White House Deputy Chief of Staff Stephen Miller, and Assistant Attorney General for the National Fraud Division Collin McDonald, they held a private meeting with the attorneys general.

Vance opened his remarks by highlighting the work his team has accomplished to date.

“We exposed billions of dollars in benefits that had been stolen from the American people,” he said, revealing the following:

  • Over $22 billion in fraudulent small business loans
  • More than $1.3 billion in fraudulent Medicaid reimbursements
  • $6.3 billion in suspected fraudulent government contracts
  • $60 million in student aid fraud

He further told reporters that $135 billion has been stolen since the aftermath of the COVID pandemic.

Keep reading

Rep. Brandon Gill Vows Accountability as Oversight Committee Task Force Launches Investigation into BILLIONS of Dollars in Ohio Medicaid Fraud

Rep. Brandon Gill (R-TX) announced last week that his team on the House Oversight Committee is going to tear a newly uncovered Ohio-based Medicaid fraud scheme down “piece by piece.” 

Gill was tapped this month to chair the Oversight Committee’s new Task Force on Defending Constitutional Rights and Exposing Institutional Abuses, where he’s planning to uncover billions of dollars in fraud.

“Hundreds of millions of dollars of your tax money is being wasted in an Ohio Medicaid scheme that we’re uncovering on the House Oversight Committee. We believe this scheme stretches into the billions of dollars,” Gill said in a clip shared on X on Friday. “The Ohio Medicaid Agency had years to figure this out. A reporter did it in just a couple months, and we’re building on their work.”

“We’re saving you taxpayer dollars, and we’re ending fraud on my task force at the House Oversight Committee,” he added.

“Fraudsters stole hundreds of millions of your tax dollars through an Ohio Medicaid scandal. My GOP Oversight Task Force is pulling this scheme apart piece by piece,” Gill wrote on X.

Keep reading

Indicted Minnesota Fraudster Muhammad Omar Captured After Jumping Off Balcony and Fleeing Amid $90 Million Bust

Indicted Minnesota fraudster Muhammad Omar was captured two hours after he jumped off a 4-story balcony and fled.

The Justice Department on Thursday announced new indictments against 15 Minnesota fraudsters in a ‘shocking’ $90 million bust during a press conference on its efforts to crack down on fraud.

Assistant Attorney General Colin McDonald made the announcement after Aimee Bock, the convicted mastermind behind the $250 million Feeding Our Future scandal, was sentenced to 41.5 years in federal prison.

“Today, we are announcing criminal charges against 15 defendants in Minnesota for fraud schemes that targeted over $90 million in taxpayer dollars,” Colin McDonald said.

“This is the beginning of our work in Minnesota. The fraud here in Minnesota is shocking,” he added.

One of the indicted fraudsters, identified as Muhammad Omar, jumped out of a 4-story building and fled.

“Muhammad Abdulqadir Omar, 32, was charged by indictment with one count of conspiracy to commit health care fraud and four counts of health care fraud in connection with a scheme to submit $3.3 million in fraudulent claims to the Housing Stabilization Services (HSS) Program of Minnesota Medicaid, of which approximately $3.2 million was paid,” the DOJ said.

Keep reading

DOJ Indicts 15 In Sweeping Crackdown On Somali Fraud

Federal prosecutors unveiled sweeping new charges Thursday against 15 defendants in Minnesota, accusing them of looting more than $90 million from taxpayer-funded Medicaid programs in what officials described as a massive new chapter in the state’s sprawling Somali fraud scandal.

The Department of Justice announced the cases during a press conference led by Colin McDonald, assistant attorney general for the DOJ’s National Fraud Enforcement Division, just hours after Feeding Our Future figure Aimee Bock was sentenced to more than 41 years in prison for her role in a separate $250 million pandemic fraud scheme that rocked Minnesota.

Many of the defendants charged in the latest cases are Somali or Somali-American, according to charging documents and court records tied to the investigation.

Federal officials signaled the new indictments are part of a much broader push to crack down on what prosecutors say has become systemic fraud across multiple Minnesota public assistance programs.

“Let me be clear upfront about something: This is not the end of our work in Minnesota,” McDonald said. “This is the beginning of our work in Minnesota. The fraud here in Minnesota is shocking.”

Keep reading

Minnesota ‘Feeding Our Future’ Somali Fraud Mastermind Aimee Bock Sentenced to Over 41 Years in Prison

Aimee Bock, the convicted mastermind behind the $250 million Feeding Our Future scandal, has been sentenced to 41.5 years in federal prison.

The sentencing, handed down Thursday, was over her role in a massive scheme that fraudulently billed taxpayers for tens of millions of meals that were never provided to low-income children during the pandemic.

The fraud was centered in Minnesota’s large Somali community and involved dozens of defendants.

Bock, who founded Feeding Our Future, was convicted in March 2025 on multiple counts, including conspiracy, bribery, and wire fraud. She had been the central figure coordinating the operation that exploited relaxed federal rules during the COVID-19 emergency.

Keep reading

House Oversight Officially Launches Full-Blown Investigation Into Massive Ohio Medicaid Fraud Scheme Allegedly Tied to Somali Networks — Rep. Brandon Gill: “Billions of Dollars” Stolen From Taxpayers

The House Oversight Committee is officially turning up the heat on what could become one of the largest Medicaid fraud scandals in American history.

House Oversight Chairman James Comer and Rep. Brandon Gill have launched a sweeping federal investigation into alleged rampant abuse of Ohio’s Medicaid system after explosive reports revealed suspicious billing patterns centered around two ZIP codes near Columbus, Ohio, an area home to one of the largest Somali populations in the United States.

According to reports cited by House Republicans, a state audit found that Franklin County, home to just 11.5% of Ohio’s population, accounted for roughly 38% to 40% of the $1.6 billion spent statewide, with nearly 40% of that amount flowing to just two neighboring ZIP codes, totaling approximately $240 million.

Auditors also identified a 15.6% error rate in eligibility determinations, raising concerns that improper payments could range from $800 million to as much as $4 billion.

Additional reporting uncovered nearly vacant office buildings allegedly housing hundreds of billing companies. Ohio officials have since brought charges against some providers and maintain that safeguards are in place, while both state investigators and a federal task force continue to examine the potential fraud.

The Oversight Committee announced a brand-new task force specifically aimed at exposing institutional abuses, fraud, and misuse of taxpayer-funded social welfare programs, with Gill tapped to lead the charge.

Keep reading