Fraud tourism is no longer a rhetorical jab but a federal accusation, as prosecutors unveiled new charges alleging Minnesota’s taxpayer-funded programs lured out-of-state scammers chasing “easy money.” The latest indictments intensify scrutiny on Democratic leadership as voters grow increasingly alarmed about unchecked fraud.
U.S. attorney Joe Thompson announced charges Thursday against six defendants, including two men from Philadelphia accused of flying to Minneapolis to exploit Minnesota’s Housing Stabilization Services program. Prosecutors say Anthony Waddell Jefferson and Lester Brown enrolled sham companies after hearing the program was “a good opportunity to make money,” then returned home and submitted up to $3.5 million in “fake and inflated” Medicaid bills.
“Minnesota has become a magnet for fraud, so much so that we have developed a fraud tourism industry—people coming to our state purely to exploit and defraud its programs,” Thompson said. “This is a deeply unsettling reality that all Minnesotans should understand.”
Thompson added, “Mr. Jefferson and Brown were residents of Philadelphia who had no connection to Minnesota, except that they heard Minnesota and its housing stabilization services program was easy money.” The new cases undercut Gov. Tim Walz’s claim that he was responsible “for putting people in jail” over prior fraud scandals. Federal prosecutors—not state officials—have brought all 78 indictments tied to the Feeding Our Future case.
The investigation now spans multiple welfare programs. Thompson warned, “Every day we look under a rock and find a new $50 million fraud scheme.” Prosecutors detailed allegations involving fraudulent autism diagnoses, kickbacks to parents, untrained teenage “behavioral technicians,” international travel funded by Medicaid dollars, and even cryptocurrency purchases.
Public concern appears to mirror federal findings. A recent poll shows 79 percent of Minnesota voters view fraud as the biggest or a major problem, while 69 percent say Walz needs to “do more.” As fraud tourism enters the political lexicon, pressure is mounting for tighter oversight and accountability.
