DHS whistleblowers allege fraud, retaliation in U.S. Senate hearing
On Wednesday, May 20, 2026, two insiders at the Minnesota Department of Human Services testified to the U.S. Senate Small Business Committee alleging fraud and retaliation within the agency.[1]
Former investigations manager Jay Swanson said some child care centers gave cash kickbacks to parents in immigrant communities and told them to claim full-time public subsidies while keeping children at home.[1] Current DHS compliance specialist Faye Bernstein said agency leaders approved large payment advances, often about $1 million on $3-4 million contracts, and dismissed her conflict and financial risk concerns.[1] Both witnesses said they suffered retaliation after raising alarms to leadership.[1]
Swanson previously worked as an investigations manager at Minnesota DHS, and Bernstein still serves as a compliance specialist there.[1] They told the Senate panel they brought internal complaints to agency leaders who they say ignored warnings and then penalized them professionally.[1]
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📌 Key Facts
- Two DHS insiders – former investigations manager Jay Swanson and current compliance specialist Faye Bernstein – testified Wednesday before the U.S. Senate Small Business Committee about fraud and retaliation at Minnesota DHS.
- Swanson alleged some child care centers receiving public subsidies recruited parents in immigrant communities with cash kickbacks, instructing them to claim full‑time care while keeping their kids at home.
- Bernstein testified that DHS leadership approved large advances, sometimes around $1 million on $3–4 million contracts, and dismissed her concerns about conflicts of interest and financial risk, and both witnesses say they were retaliated against for raising alarms.
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