Medicaid and Benefit Fraud

Deputy Attorney General Todd Blanche said on the "Ruthless" podcast that the Justice Department is setting up an "entirely new" fraud division and will name a new assistant attorney general whose sole focus will be prosecuting fraud involving federal funds, with Minnesota Medicaid, school‑lunch and daycare schemes cited as prime drivers. Blanche tied the move to President Donald Trump’s January decision to put Vice President J.D. Vance in charge of a national "war on fraud" after billions in taxpayer dollars sent to Minnesota were allegedly mishandled or stolen. He highlighted a case of two Pennsylvania men who allegedly secured $4 million in federal funds by falsely claiming to operate homeless shelters in Minneapolis, and said the federal government "gives money away like candy" to bogus providers that bill for non‑existent services. Blanche vowed that "no fraud [is] too small, and no fraud [is] too large," saying DOJ wants to make clear that stealing more than $1,001 in federal money will be treated as a felony with prison time, which he argued would be a significant deterrent. The remarks signal an aggressive new enforcement posture on federal benefit fraud, with Minnesota serving as a warning about what happens when oversight fails.