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MINNEAPOLIS, MN – As a large fraud scheme costing state and federal taxpayers not less than $1 billion {dollars} continues to unfold in Minnesota, Fox Information Digital visited a number of areas that obtained funding by applications like Feeding Our Future and located a number of inconsistencies exposing the depth of the scandal.
The now-infamous Griggs-Halfway Constructing housed an “uncommon focus” of fraudulent entities concerned within the HSS scheme, in line with Appearing U.S. Lawyer Joseph H. Thompson.
Twenty-two “companies” linked to the HSS program had been registered to this single location. Thompson described these entities as “purely fictitious firms solely created to defraud the system.”
These 22 fraudulent companies collectively billed Medicaid for a staggering $8 million between January 2024 and Could 2025.
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An in-person investigation by Fox Information Digital of the constructing, situated in St. Paul, Minnesota, confirmed big swaths of the southern aspect of the constructing fully deserted. A black and white banner promoting open areas within the constructing was adorned atop the “Griggs-Halfway Constructing” signal.
A number of males sat collectively and engaged in dialog on the constructing entrance. When approached, the lads advised Fox Information Digital that they didn’t communicate English.
Nonetheless, the western aspect of the constructing housed quite a lot of seemingly authentic companies on the primary ground, together with a hair salon, a monetary help and mortgage service for African immigrants and a property administration workplace.
The Griggs-Halfway constructing has grow to be a focus of the Minnesota HSS fraud scandal. (Nikolas Lanum/Fox Information Digital)
Following in depth FBI searches of the constructing, the Minnesota Division of Human Providers carried out roughly 40 investigations into suppliers related to the bigger Griggs-Halfway constructing.
Sensible Minds Providers allegedly submitted over $2.3 million of the $8 million in fraudulent claims from the Griggs-Halfway location, rating as one of many state’s highest-billing HSS suppliers final 12 months.
4 defendants, Moktar Hassan Aden, 30; Mustafa Dayib Ali, 29; Khalid Ahmed Dayib, 26; Abdifitah Mohamud Mohamed, 27, had been charged within the fraud case. Mohamed was the proprietor of one of many different fraudulent companies implicated, Basis First Providers LLC.
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One other false declare location took Fox Information Digital to a second-story walkup above a sushi store simply blocks away from the Mississippi River.
The entryway was locked, and it was unclear whether or not the fraudster merely utilized the deal with to maintain distance, or if the fraudster was truly situated on the unit quantity listed on the declare.
The second ground confirmed little signal of life. Although one window displayed a “No Kings, No Fascists” signal dealing with out onto the snowy metropolis avenue.
A big uniform reddish-brown brick constructing often called “Winsor Plaza” was the subsequent vacation spot of Fox Information Digital’s trek by a brewing Minnesota snowstorm.
The straightforward, box-like type of the constructing was centered by a purple cover protruding from the construction’s major entrance. A white-water tower with “Roseville” painted in purple letters rose within the distance by the fog. Inside, a listing confirmed dozens of authentic companies, together with medical doctors’ workplaces and wealth administration providers.
A search by the quiet halls of 1935 W County Highway gave method to confusion. Unit 150, the workplace house listed on the false declare, was nowhere to be discovered. It appeared that within the constructing’s present configuration the suite merely didn’t exist. Not solely was the declare fraudulent, so was the deal with.
An identical scenario occurred at 9120 Baltimore St N. The claims report famous that the fraudulent entity was working out of suite 100. Upon arrival, 9120 was seen affixed to a stone pillar within the heart of a enterprise car parking zone.
Nonetheless, there was no conglomerate of workplace areas or condominium models, no numbers affixed to completely different storefronts. Solely a singular, operational dental workplace. One other obvious fraudulent deal with.
NorthPark Dental in Blaine, Minnesota, seems to be a authentic, operational enterprise. There isn’t a Unit 100 at this location, suggesting that the alleged fraud entity gave a pretend deal with. (Nikolas Lanum/Fox Information Digital)
The development was damaged on the subsequent two areas.
2756 Douglas Dr N is a business deal with in Crystal, Minnesota, housing companies like Rock Bridge Counseling & Psychological Well being and All Variety Portray & Cleansing, providing providers for teenagers in disaster and residential enchancment, respectively.
These two companies comprise suites A and B of the constructing however weren’t the fraudulent entities listed on location claims. An actual constructing, with actual companies, however a pretend firm that appeared to by no means exist in that house.
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One other cease, 1541 Como Ave, was discovered inside a slim St. Paul, Minnesota alleyway. The deal with housed a small, rusted storage affixed to the again of a church. The storage appeared vacant, with no mailbox or rubbish cans.
A picnic bench simply outdoors the storage door was lined in leaves, snow and different particles.
A number of gents inside a close-by native enterprise advised Fox Information Digital {that a} man named “John” had used the situation for a small pop-up health club and health heart. He was typically seen driving round in a elaborate automotive. There was no indication as as to whether this location was the authentic operation heart of the fraudulent declare.
4601 E 54th St, one other location tied to the scandal, was visited by Fox Information Digital solely to search out an empty car parking zone. The deal with listed was within the 400s on the road. Nonetheless, there aren’t any 400s on that avenue, solely 500s.
One other location, 2720 E Lake St, was fully boarded up and lined in graffiti with a homeless particular person sleeping out entrance. The constructing appeared to have been inoperable for an extended time period.
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“Most of that $500 million hasn’t served a single meal and a number of the easy issues are if they might have simply gone to the amenities, you realize, you hear of the 1000’s of individuals being served out of an condominium twice a day, all they must do is present up and have a look at it,” Minnesota Republican state Sen. Mark Koran advised Fox Information Digital concerning the fraud that was hiding in plain sight in Minneapolis.
“There was an legislative auditor report that confirmed that 30 property homeowners the place these companies declare to function out of, contacted the Division of Training who handle it, who managed that program, and so they advised them one, the companies do not exist of their amenities, so they do not exist, interval, and considered one of them I feel was a metropolis park,” Koran mentioned.
“And so the Division of Training gave that grievance to the nonprofit Feeding Our Future to deal with these points and the Division of Training continued to pay thousands and thousands to these thirty with a blatant, easy technique of ‘we have been notified they do not exist’ and so they rejected and ignored it.”
