{"id":118646,"date":"2026-01-27T10:55:32","date_gmt":"2026-01-27T15:55:32","guid":{"rendered":"https:\/\/cablemanpro.com\/wallstreetpr\/minnesota-fraud-whistleblower-says-lack-of-guardrails-was-pretty-shocking-118646"},"modified":"2026-01-27T10:55:32","modified_gmt":"2026-01-27T15:55:32","slug":"minnesota-fraud-whistleblower-says-lack-of-guardrails-was-pretty-shocking","status":"publish","type":"post","link":"https:\/\/cablemanpro.com\/wallstreetpr\/minnesota-fraud-whistleblower-says-lack-of-guardrails-was-pretty-shocking-118646","title":{"rendered":"Minnesota fraud whistleblower says ‘lack of guardrails was pretty shocking’"},"content":{"rendered":"
\n

A Minnesota woman employed by the state\u2019s Department of Human Services is speaking out against what she describes as incompetence within the department following the discovery of rampant fraud in the state\u2019s health care system<\/a>.<\/p>\n

Faye Bernstein told the City Journal<\/a> in an interview that she first began to realize the high risk of fraud at Minnesota\u2019s DHS in 2018 and 2019 following a promotion to a lead position.<\/p>\n

“Over the years, I had often thought that DHS is sloppy,” she said. “But 2018 and 2019 are when I saw, oh gosh, this is beyond normal. If we don\u2019t have fraud today, we\u2019re going to have fraud soon.”<\/p>\n

Bernstein has been a DHS employee for two decades, working in contract management and as a compliance officer, she told the outlet. In her lead position, she said she was able to see all the contracts being worked on by those in her division and witnessed conflicts with the contracts that could be deemed risky.<\/p>\n

MINNESOTA ‘ON THE CLOCK’ AS HHS THREATENS PENALTIES OVER CHILDCARE FRAUD SCANDAL<\/strong><\/a><\/p>\n

“I was aware that our contracting processes were leaving us completely open to fraud<\/a>,” Bernstein said. “But to realize the lack of guardrails was pretty shocking.”<\/p>\n

Federal prosecutors estimate that up to $9 billion was stolen through a network of fraudulent fronts posing as daycare centers, food programs and health clinics. The majority of those charged, so far, in the ongoing investigation are part of Minnesota’s Somali population<\/a>.<\/p>\n

When she tried to report the issues at the time to her deputy director, Bernstein said she was told to stop asking questions. Bernstein said she felt retaliated against after<\/a> most of her duties were reassigned and was eventually “shuffled from one job to another.”<\/p>\n

HOUSE REPUBLICANS CALL MINNESOTA FRAUD PROBE ‘TIP OF THE ICEBERG’ AS MORE BLUE STATES FACE SCRUTINY<\/strong><\/a><\/p>\n

“Even our human resources people would tell us, \u2018If your supervisor tells you to do something, you must do it.\u2019 And when you didn\u2019t, the word \u2018insubordination\u2019 came up,” she said. “They considered it insubordinate if you resisted an unlawful direction.”<\/p>\n

Bernstein told the outlet that she has been going through emails received beginning in 2024 from members of the public warning about the alleged fraud.<\/p>\n

“I was really surprised at how much notification we had,” she told the outlet. “Did we really ignore all those people writing in? Members of the public had advised us of this [alleged fraud] in email after email after email.”<\/p>\n

TRUMP ADMIN PUTS MINNESOTA ON NOTICE, MOVES TO AUDIT MEDICAID AND CLAW BACK FUNDS TO PROTECT TAXPAYERS<\/strong><\/a><\/p>\n

The state\u2019s DHS on Friday said that recently released federal data shows Minnesota\u2019s Medicaid program<\/a> has a significantly lower improper payment rate than the national average, with an error rate of just over 2.1%, compared with a national average of 6.1%.<\/p>\n

State officials also noted the data was collected before Minnesota began rolling out additional measures aimed at reducing fraud risk.<\/p>\n

“We’re committed to making Minnesota a national model for preventing fraud and catching errors,” said Shireen Gandhi, the state\u2019s interim human services commissioner. “This review shows we have strong internal controls that we continue to improve, and we are not stopping there as we accelerate our efforts to fight fraud.”<\/p>\n

Bernstein, who said she has only voted Democrat, said the fraud was genuine and not partisan politics.<\/p>\n

“This is definitely not something that the Republicans are making up,” she said. “This is real.”<\/p>\n

Fox News Digital’s Alex Miller contributed to this report.<\/i><\/p>\n<\/div>\n

Source – https:\/\/www.foxnews.com\/politics\/minnesota-fraud-whistleblower-says-lack-guardrails-pretty-shocking <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A Minnesota woman employed by the state\u2019s Department of Human Services is speaking out against what she describes as incompetence within the department following the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[16563],"tags":[],"stock_ticker":[],"class_list":["post-118646","post","type-post","status-publish","format-standard","hentry","category-market-news","entry"],"acf":[],"yoast_head":"\nMinnesota fraud whistleblower says 'lack of guardrails was pretty shocking' - Wall Street PR<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cablemanpro.com\/wallstreetpr\/minnesota-fraud-whistleblower-says-lack-of-guardrails-was-pretty-shocking-118646\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Minnesota fraud whistleblower says 'lack of guardrails was pretty shocking' - 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