Minnesota to stop the housing program amid the investigation of fraud

The Ministry of Humanitarian Services in Minnesota announced on Friday that it will move to end the recently marked housing program for fraud by federal investigators.

The agency said that it also suspended payments to another 11 introduction – a total of 77 – due to reliable allegations of violations.

The temporary commissioner DHS Sherine Gandhi asked Federal Centers for Medicare and Medicaid Services To end the program, quoting insufficient controls to prevent bad actors from accessing financing.

Minnesota was the first state to use medicaid money to find more stable housing options for the population who started in 2020. In the years after that, the costs swollen beyond expectations as some grant recipients were abused the use of funds – and Minnesotans’ lack of help in securing legitimate aid. The FBI raided many companies last month.

Gandhi said that the Ministry’s Inspector Office advised officials to end the program after the unqualified service providers were found that received grant financing.

Gandhi said in a written statement: “We cannot allow a hundred taxpayers’ money that comes out of the door to service providers who claim to serve Minnesotanis who need stable housing while lining their pockets to achieve personal gains, “Gandhi said in a written statement. “We are following an approach to the zero tolerance of fraud and we will continue to take quick measures to stop payments to any providel organizations that we believe were committing fraud in our HSS program. Enough is enough.”

Gandhi said that the administration will reinstall the program with inputs from the legislative body in Minnesota. Department Dozens of payments stopped During the past month, after the beneficiaries were marked for possible abuse.

“Ending this program, although it is unfortunate for those who need these services, is the necessary step at this time,” said James Clark, Inspector General with DHS.

Under a new law approved by the legislature, agencies have more authority and commitment to cutting payments when they are suspected of fraud. Changes partially grew from the future nutritional aid scandal, which included more than $ 250 million of federal aid through Covid-19; Multiple condemnations and guilty calls have been secured in this fraud scheme by federal prosecutors.