Faye bernstein
136 posts


Today, CMS notified Governor Walz and the state of Minnesota that we are deferring an additional $91 million in federal Medicaid funding.
This follows a pattern we can’t ignore. From the “Learing Center” scandal to the recent DOJ action involving childcare centers, Minnesota’s Medicaid program has shown serious vulnerabilities to fraud. These are not isolated breakdowns—they point to systemic issues that must be addressed.
Here’s the reality: the federal government funds roughly half of Medicaid. That gives CMS both the authority and the responsibility to ensure those dollars are spent legally and appropriately. When they’re not, we act.
Earlier this year, after auditing Q4 FY2025 billing, we deferred over $250 million.
Of the $91 million deferred:
• $76 million is tied to 14 service categories highly vulnerable to fraud
• $14 million involves program integrity concerns, including payments for ineligible individuals
We’re giving Governor Walz as much support as we can to turn this around. However, we cannot and will not pay bad bills so we’re asking for more information from Minnesota to verify these bills.
CMS will continue using every tool available to protect Medicaid’s integrity—because this program must serve the most vulnerable Americans, while honoring the trust of taxpayers.
More updates to come.
As always, I’m grateful to @VP’s leadership as CMS plays its part in the whole-of-government effort to root out fraud.
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@Minnesota_DHS An audit of this type will be lengthy and expensive. And worth every penny.
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At MN DHS, the patterns of fraud were obvious. Explosive growth in providers and services in a short amount of time. Dubious evidence that services were actually provided.
But what distinguishes MN fraud is the fact that leaders heavily suppressed whistleblowers.
Ian Jaeger@IanJaeger29
Dr. Oz has officially called for a nationwide audit of the entire Medicaid program. We need this badly.
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@EricLDaugh Be safe. Continue doing your great work but be safe.
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🚨 JUST IN: Nick Shirley reveals it's getting dangerous for him to stay at HOTELS because of the doxxing and killing plots
He says the date is coming up when someone planned an ASSASSINATION attempt on him. Disgusting.
"I've had death threats, and one of them was even very specific about the date. It's actually supposed to be coming up very soon, the date that they said they'd kill me."
"Danger is real. Like, for instance, last time I was in California, a few trips back, people were trying to dox my location live."
"I was at a hotel, and people were up on Reddit group chat saying where I was staying."
"And it's happened a few times now, so it's almost even dangerous for me to go stay at hotels, because you can get doxed really quick, and people can find out where you're at. You get constant death threats from people. The fraudsters are angry."
"You just get all these death threats. You get doxing. But the majority of the public are very thankful."
"When I'm out in public, so many people come up to me and say thank you. It's actually interesting."
"At Sacramento, when I was just there, so many people were saying thank you. But the people inside the [legislative] building, they all hate me, because I'm exposing their corruption. But the people love me!"
KEEP @nickshirleyy SAFE AT ALL COSTS
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@Minnesota_DHS This is absolute madness! You laid out the facts and DHS ignored you. I am speechless.
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@Minnesota_DHS This is unbelievable! You provided every detail necessary to stop this more than 4 years ago.
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We gave them an early warning. Jodi Harpstead knew. Shireen Gandhi likely knew. No action EXCEPT retaliation.
From: Concerned BHD Employees
Sent: Friday, December 2, 2022 (3:33) PM
To: Randall, Judy (OLA)
Subject: Corruption of Contracting Processes
Dear Judy,
We want to bring to your attention some abnormalities in BHD contracting process. As public employees, we are reporting possible misuse of public money and non-compliance with state laws in the contract management processes in BHD/DHS. As one example of this corruption of process, contract ID 219494 with Zion Baptist Church, this contract was instated by Paul Fleissner, a work out of class director whose salary was paid using DHS funds at a considerably higher rate than what our salary ranges are. Paul was brought on to by Commissioner Harpstead from Olmstead County because he was friends with Deputy Commissioner Chuck Johnson. Paul's performance at DHS was cited to being seriously deficient, in fact, could otherwise be described as being disastrous. This specific contract was put into place to address "trauma" experienced by black communities in North Minneapolis. However, no RFP was ever issued and the contract given to Zion Baptist Church with no cited work plan, justification for sole source or any other performance metric to justify the spending. $X million dollars of public dollars was given to this vendor with no oversight of any kind. Now, Eric Grumdahl wants to add another $X million dollars to provide to this vendor with similar lack of documentation, justification or oversight. In fact, DHS recently discovered no justification for sole source form was ever documented or approved by contracting and legal compliance. Now, DHS is trying to backdate the justification for sole source which is technically illegal.
The grant manager and their supervisor Amanda X were never held accountable for this misconduct, in fact, Amanda was recently promoted for a position she is not qualified for. We want you to investigate who benefitted from this contract 219494 as violence prevention activities in North Minneapolis, is something that many other qualified vendors would have been interested in if DHS would have acted legally and issued an RFP. We are worried that the majority of the funds went to the executives of this organization rather than serving the community and people. This vendor is required to coordinate a consortium of multiple small organizations to provide violence prevention services. However, none of those organizations have been verified by DHS. In fact, some of those do not have a valid physical or web address.
Please let us know if you require any additional information. We will be sending you more information on specific contracts in the coming weeks that detail issues with financial reconciliation, funding abnormalities and compliance issues.
Thank You,
Concerned Employees of BHD
KSTP@KSTP
The Minnesota Attorney General filed suit against the Zion Baptist Church, demanding the return of $2.48 million in grant money. kstp.com/kstp-news/top-…
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“Fix the culture” after decades inside the system?
MN DHS Chuck Johnson, after 30 years on a six-figure taxpayer salary PLUS post retirement work—what exactly did you fix while you were there?
minnesotareformer.com/2026/04/14/yes…
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@MN_Fraud_Cmte It’s interesting that the Commissioner & I have precisely the same information on this occurrence but she considers it an error/misunderstanding while I consider it falsification. Using that logic, fraudulent Medicaid billings are simply misunderstandings. There is the problem.
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@Minnesota_DHS Check the underspending of DHS - funds that go to the General Fund because they are so mismanaged. When DHS asks for additional funds for a particular program you will notice underspending of the same program. Maybe DHS should manage the funds correctly in the first place.
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Legislators — this is your chance to do something right.
The HHS omnibus bill before the Minnesota Legislature is asking for millions more for programs across mental health, SUD, and children’s services.
But many of these same services already have serious concerns — compliance issues, audit findings, and potential fraud risks.
So ask, before approving anything:
Where did the last funding go?
Did it actually reach the people it was meant to help? How many people were served? What results did we get?
Were there violations or corrective actions? Who verified any of this independently?
Do not approve a single penny until these are answered.
Because Minnesotans will ask you.
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@RealLindellTV @ByronDonalds @GovTimWalz @LtGovFlanagan If the Commissioner of the Department of Human Services did not speak to Governor Walz about the complaints of whistleblowers then that Commissioner would be derelict in their job and needs to be fired.
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“Why Don’t You Take Responsibility?” - Rep. Byron Donalds Presses Walz on Whistleblower Intimidation
Rep.@ByronDonalds confronted @GovTimWalz over allegations that @LtGovFlanagan intimidated whistleblowers who tried to expose fraud.
Donalds revealed: “There are 30 whistleblowers who have given letters to this committee… saying they were subject to intimidation by your administration.”
Walz responded: “I have no knowledge of that.”
Donalds fired back:
“But you’re the governor. Why don’t you take responsibility for what’s going on in your state?”
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@Minnesota_DHS It’s so interesting to me that Commissioner Harpstead wrote a book about how to transform an organization, while her tenure at DHS was SO DESTRUCTIVE. What was it about her message that took an already shaky agency to near complete disaster?
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@BernsteinFaye It is funny! We all know that it’s a position with no real ability to fix the dysfunction in the Central Grants Office that is hampered by INCOMPETENT LEADERS.
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The FBI team assigned to the investigation of Minnesota fraud is asking that tips be routed to them at: mp_corruptiontipline@fbi.gov
This is a mailbox that has been set up specifically for Minnesota; information gathered will go directly to the Special Agents assigned.
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Guess who runs the biggest propaganda and fraud agency? Tim Walz!
This is a shameful website by DHS full of incoherent and inaccurate excuses on why DHS fraud is “not so bad.”
Tim Walz’s website has no accurate data. Just opinions and falsehoods to excuse their incompetence.
Strange how MN DHS omits the recent Optum report and the multiple OLA reports that cite the deficiencies in MN DHS program integrity and basically contradicts everything DHS says in their propaganda page. Whoever made the website needs to get a new job.
mn.gov/dhs/program-in…
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@AlphaNews You can see the passion and frustration of his delivery. This guy has been silenced for too long and this was his moment! Bravo David! You are Minnesotas hero!
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WATCH: David Hoch testifies on fraud before the U.S. Senate, slamming the "criminal behavior from the gang at the Minnesota Department of Human Services."
"It was the sheer volume and the blatant nature of the Somali fraud that demanded my attention.
"It's criminal behavior. The federal government has to use that cudgel and say, 'Look, you better sure if you issue that payment, it's a legitimate payment, or you could end up in prison.'"
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