First Assistant U.S. Attorney Joe Thompson describes a sprawling fraud investigation involving state-run programs in Minnesota at a news conference Thursday, Dec. 18, 2025, in Minneapolis. (AP Photo/Giovanna Dell'Orto)2025-12-18T18:15:12Z MINNEAPOLIS (AP) At least 14 state-run programs in Minnesota have been flagged for fraud, a prosecutor said Thursday as he announced new charges in several schemes.First Assistant U.S. Attorney Joe Thompson said during a news conference that federal officials suspect a significant portion of roughly $18 billion paid out by Medicaid to Minnesota programs was fraudulent.What we see in Minnesota is not a handful of bad actors committing crimes, Thompson said. Its swamping Minnesota.Investigators new findings may bolster President Donald Trump in his claims that Minnesota is a hub of fraudulent money laundering activity under Gov. Tim Walz, who was the Democrats vice presidential nominee in last years presidential election. Trump has capitalized on the fraud cases to target the Somalian diaspora in Minnesota, calling them garbage and saying he doesnt want immigrants from the East African country in the U.S. Thompson said 14 state-run programs have been flagged as having significant fraud problems, and many of the defendants were getting money from multiple Medicaid programs. What were seeing is programs that are entirely fraudulent, he said.Five new defendants have been charged in connection with a Minnesota housing services fraud, Thompson said. Two defendants pocketed $750,000 instead of helping Medicaid recipients find stable housing, he said. Prosecutors allege they used the proceeds to travel to international destinations, including London, Istanbul and Dubai. Stay up to date with the news and the best of AP by following our WhatsApp channel. Follow on One defendant submitted $1.4 million in fraudulent claims, using some to purchase cryptocurrency, Thompson said. Federal officials say he fled the country after receiving a subpoena. The five new defendants join eight others charged in September for their alleged roles in the scheme to defraud the Minnesota Housing Stability Services Program.Prosecutors also named a new defendant accused of defrauding another state-run, federally funded program that provides services for children with autism, alleging he submitted millions of dollars worth of claims for Medicaid reimbursement. One woman previously charged for exploiting that program pleaded guilty Thursday morning, officials said. He called Minnesota an outlier, saying that the scale of fraud outpaces that of other states and that he sees more red flags than legitimate business in the claims providers are submitting. Asked who is to blame, Thompson said the state has not done a good job of mining these programs. The fraud puts government-run services at risk for people who really need them, Thompson said. Theres real patients, real clients, real people who need services and arent getting them, he said. HANNAH FINGERHUT Fingerhut is a government and politics reporter based in Des Moines, Iowa. mailto GIOVANNA DELLORTO DellOrto is a multimedia reporter with The APs Global Religion team. She has reported across the United States, Europe, Latin America and the Middle East, covering events and issues ranging from the conclave to the Israel-Hamas war to the Olympics, from immigration to the intersection of Indigenous spirituality and the environment.