Long-Running Medicaid Scheme in Minnesota Draws Outrage After Insider Confession
A confession from a Minnesota man has revived interest in a lengthy welfare fraud operation in the state. In a widely shared video, he disclosed that he engaged in a Medicaid scheme for more than a decade, claiming that “always Somalis” involved in the medical transportation process paid him kickbacks to set up fictitious medical appointments. These unnecessary transportation services were charged to taxpayers, resulting in significant payouts over the years.
“They would be defrauding my Minnesota Medicaid by me writing fake appointments,” he stated plainly. “The fraud…has been going on for a very long time. I’d say I started getting paid out by them probably like 13–14 years ago.”
This confession contributes to a growing body of evidence supporting an extensive investigation by the Minnesota Medicaid Fraud Control Unit. Officials describe a “vast criminal enterprise” that has exploited the Medicaid system through falsified interpreter and transportation claims, predominantly targeting rural Somali American communities like Faribault.
The operation took advantage of systemic weaknesses in Minnesota’s Medicaid, particularly UCare, the insurer responsible for transport coverage. Notably, state regulations permit patients to travel up to 60 miles for medical care without pre-authorization. This loophole made the 50–60-mile distance from Faribault to the Twin Cities a prime location for exploitative practices.
Massive Fraud: Phantom Trips, Fake Services
Investigators labeled the fraudulent scheme PITSTOP-66, focusing on illegitimate billings for non-existent medical appointments. Drivers, interpreters, and rogue clinics collaborated to enroll patients—often without their knowledge—and transported them to clinics or simply filed claims for trips that never took place.
Claims were made for services such as acupuncture, chiropractic care, or therapy, which patients never requested or received. Financial records reveal that the fraud persisted particularly from 2013 to 2020, with some activities dating back even further. One independent interpreter, Nasro Aden Takhal, submitted thousands of inaccurate transportation claims, using 356 different identities, many belonging to residents of Somali descent in Faribault.
According to legal documents, Takhal and her seven co-conspirators inflated their requests, filing around $2.6 million in fraudulent Medicaid reimbursements through inauthentic transportation and interpreter claims. They devised methods to disguise the trips, fabricated appointments, and misrepresented service logs. In some cases, the same vehicle transported multiple Medicaid clients, but the state was billed multiple times by categorizing each ride as a separate event.
Evidence and Authorities’ Response
Since 2018, the Minnesota Attorney General’s Office has prosecuted at least 102 individuals statewide for Medicaid fraud, resulting in 94 convictions so far. Of the 14 individuals connected to the PITSTOP-66 scheme, many have already pleaded guilty, including a clinic owner sentenced earlier this year. Investigators utilized surveillance videos, witness testimonies, appointment logs, and financial audits to build their case.
Surveillance footage has revealed deceitful practices, including vehicles arriving at clinics that were closed or never making the trip at all while Medicaid was still billed for transportation services. In one instance, an interpreter logged hours for services on Sundays, despite no medical providers being operational on those days.
State investigators also identified that Takhal continued scheduling trips even after UCare banned her in 2019, simply changing her identities and phone numbers to keep the fraudulent requests coming.
Brian Evans, a spokesman for the Attorney General, defended the efforts to identify and stop such violations: “They do great work to protect the resources that are supposed to go to folks with limited incomes and resources.”
Nicholas Wanka, director of the Medicaid Fraud Control Unit, emphasized the need to focus resources effectively: “We made a decision years ago that that’s the best use of our resources—to focus on the largest providers. It’s going to have the biggest impact on program integrity.”
Who Is Involved — And Who Was Harmed
The majority of defendants in this case are Somali Americans, many of whom either unknowingly had their identities exploited or actively helped recruit patients. Many of those affected reside in Faribault, a city of around 24,000 just south of Minneapolis. This community became a target for fraud because it was conveniently located near the travel reimbursement limit, facilitating billing for extended trips without meticulous oversight.
One court document detailed a Faribault resident who was billed for over 250 interpreter services she never received. Other residents only discovered their identities had been compromised when investigators arrived with audit records and billing histories they never recognized.
The fraud extends beyond the PITSTOP-66 scheme and raises larger concerns about systemic abuse. A separate federal inquiry suggests that stolen Medicaid funds may have been sent overseas to Somalia through informal banking networks known as hawalas. Allegations even link some of these funds to terrorist organizations such as Al-Shabaab.
Former state senator David Gaither spoke about the implications of these findings: “There are people that legitimately need those resources who are not getting them. It’s beyond criminal.”
Policy Failures and Political Obstacles
Experts and former investigators suggest that the fraud persisted for so long due to a lack of tools or political courage among state agencies to confront the issue. Minnesota’s sizable Somali American population is politically active, which some believe has created hesitation to aggressively tackle the widespread abuses out of fear of societal or political repercussions.
Kayesh Magan, a former fraud investigator, acknowledged that while many Somali Americans are not involved, “it is uncomfortable and true” that nearly all accused share that background.
Investigative reporter Ryan Thorpe remarked on the challenges of enforcement: “It’s simply playing whack-a-mole. There needs to be a policy change.”
Public Demands Action
Social media footage reignited a demand for accountability, resonating with viewers in Minnesota and beyond. The original tweet paired with the video stressed: “Prosecutors need to FIND these people who were involved and lock up the fraudsters!”
The man in the video, appearing both contrite yet unapologetic, confirmed a troubling reality for many Minnesotans: unchecked fraud has persisted for far too long. “They’ve been doing it forever,” he said, illustrating the casual nature in which drivers engaged with the scheme.
Ongoing Prosecutions, But Questions Remain
Scheduled court appearances for those implicated in the Takhal conspiracy are set for July. The charges encompass a total of 67 felony counts, including racketeering, identity theft, and theft by swindle. Potential convictions could result in significant imprisonment, although sentences thus far have ranged from probation to incarceration.
Despite ongoing legal actions, pressing questions remain about oversight, systemic vulnerabilities, and the state’s capacity to prevent future exploitation. Until key safeguards are strengthened and genuine accountability is pursued, similar schemes could continue to thrive…hidden amid the complexities of social service billing and obscured by bureaucratic oversights.
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