MINNEAPOLIS — Acting U.S. Attorney Joe Thompson announced initial charges on Thursday, Sept. 18, for what he said is a “massive” fraud scheme coming out of the state’s housing stabilization program.
On July 16, the FBI raided companies suspected of providing fraudulent services under the 2020-established Housing Stabilization Services program, designed to help seniors and people with disabilities, including mental illness and substance use disorders, find and maintain housing. On Aug. 1, the Minnesota Department of Human Services announced it was moving to terminate the program altogether.
Initially, HSS was expected to cost $2.6 million annually. The program has ballooned in cost to $310 million in total since 2020, according to reports from DHS as of Aug. 22. Thompson said Thursd