Oz and Bessent visit Minnesota amid $550 million fraud probe

Federal health and treasury officials arrived in St. Cloud, Minnesota, on Thursday to oversee the latest phase of a fraud investigation targeting the state's medical sector. The visit coincides with the approach of Election Day and intensified scrutiny from Democrats who argue the administration is selectively enforcing laws in blue states. For local residents, the probe means continued federal oversight and potential financial freezes on Medicaid funds.

Officials stated that 17 search warrants were served on four targets during the latest enforcement action. New charges allege $41 million in fraud at autism centers. Approximately half of that sum is tied to Smart Therapy, a facility whose owner was the first defendant charged in the autism fraud cases. Court filings indicate prosecutors have alleged nearly $550 million in total fraud in Minnesota to date. That figure equates to about $94 for every resident in the state.

Dr. Mehmet Oz, the administrator of the Centers for Medicare and Medicaid Services, described the state as the starting point for the administration's efforts. "Our nation's war on fraud started right here in Minnesota. It's not an issue to be proud about, it's just a reality," Oz said. He noted that CMS has frozen approximately $550 million in federal Medicaid assistance to Minnesota based on suspected criminal activity.

Treasury Secretary Scott Bessent defended the selection of Minnesota as the primary focus. "I would say that we are at ground zero for per capita [fraud], given the population of Minnesota and this fraud that we've seen," Bessent said. He contrasted the Minnesota figures with Florida, where prosecutors have alleged more than $14.6 billion in fraud. That amount exceeds $622 per resident in Florida. Bessent argued that guardrails tend to be loosest in Democratic states.

Senate Democrats accused the administration of targeting blue states. Bessent responded that Democrats are deflecting by pointing to fraud in their own states. "The Democrats have let this happen on their watch, whether it's here or in their states, they are trying to deflect, and it's going everywhere, and we're going to track them down," he said. FBI Director Kash Patel emphasized the agency's commitment to prosecution, stating, "This FBI will continue to follow the money. We will continue working with our inter-agency partners, and we will put every last one of you in prison."

The choice of St. Cloud for the announcement drew some questions, as the new information released Thursday focused on raids in Edina and St. Louis Park. Bessent said the U.S. attorney invited the group to St. Cloud to discuss the crackdown. The visit marks the latest public step in the administration's effort to quantify and prosecute suspected fraud in the state's healthcare and Medicaid systems.