Deputy Attorney General Todd Blanche has announced the launch of an entirely new division within the Department of Justice dedicated to combating rampant fraud, particularly in Minnesota.
Massive Fraud Problem in Focus
Blanche described the issue as a ‘massive problem’ that receives little attention, especially Medicaid fraud. ‘It’s not fun to talk about fraud — Medicaid fraud. If you bring it up at a cocktail party, everybody’s gonna walk away,’ he noted.
In January, President Donald Trump appointed Vice President JD Vance to lead the ‘war on fraud’ following the mishandling and theft of billions in taxpayer funds directed to Minnesota.
New Leadership and Enforcement Push
A new assistant attorney general will focus exclusively on fraud cases. ‘The fraud problem is insane,’ Blanche stated.
He highlighted a striking example involving two Pennsylvania men who secured $4 million in federal funds for homeless shelters in Minneapolis. The men obtained signatures from homeless individuals, promised care, but never operated the shelters.
‘A $4 million fraud — that’s not Bernie Madoff, okay, but that’s just two dudes driving from Philly to Minneapolis ripping us off — your money, my money — ripping us off and nobody cared,’ Blanche explained.
Widespread Issues Across Programs
Blanche pointed to broader problems, including school lunch fraud and payments to nonexistent daycare centers. ‘The federal government gives money away like candy,’ he said. ‘And there’s no check on them. The feds get a bill — “Hey, can you send us $2.9 million this month because we have this many thousand kids that we pay for for their lunches?” Turns out it’s mostly made up. It’s crazy.’
Minnesota Governor Tim Walz recently testified before a House committee amid scrutiny over these issues.
Zero Tolerance Approach
The initiative pledges to pursue all fraud, regardless of scale. ‘No fraud [is] too small, and no fraud [is] too large,’ Blanche affirmed. He emphasized that stealing even $1,001 constitutes a felony punishable by prison time, serving as a strong deterrent.
