ST. PAUL, MN - Governor Tim Walz today announced that the Bureau of Criminal Apprehension has formally established a centralized state fraud investigations unit. At the direction of Governor Walz, the Minnesota Department of Commerce's fraud investigators moved to the Minnesota Department of Public Safety’s Bureau of Criminal Apprehension to create a centralized Fraud and Financial Crimes Unit, where they will have greater enforcement authority.

“Fraud against public programs is unacceptable, and Minnesotans rightly have no tolerance for it. That’s why I directed my state agencies to move quickly to establish a law enforcement unit dedicated to fighting and investigating fraud,” said Governor Walz. “As the state takes this critical step forward, I’m calling on the legislature to work together to pass a comprehensive package to prevent, detect, and put an end to fraud.”

By creating a centralized fraud investigations unit, the state will focus resources and funding to better investigate fraud impacting state programs and hold people accountable for these crimes. The state completed the transition of resources this week. Because the new office will streamline operations from across state government, it is not expected to require any additional funding.

“Fraud and other financial crimes harm every Minnesotan,” said BCA Superintendent Drew Evans. “This new BCA unit will use its combined resources to go after criminals who are committing financial crimes, insurance fraud, wage theft, and fraud against Minnesotans and state government programs. The unit will help stop the people who commit these crimes from continuing to hurt our communities and hold fraudsters accountable.”

In January, Governor Walz also proposed a new legislative package to prevent, detect, investigate, and penalize fraud in state programs. The legislative package includes:

Strengthened investigation and enforcement authority

• Adding nine staff members to the Attorney General’s Medicaid Fraud unit.
• Give agencies expanded authority to stop payments from going to people and entities suspected, charged, or convicted of fraud or financial crimes.

Better detection and oversight

• Use artificial intelligence to detect and prevent fraud. MNIT will partner with industry experts to create a pilot that would analyze data to help detect and flag payment anomalies for Medicaid providers through the Department of Human Services (DHS).
• Create a provisional license system for Early Intensive Developmental and Behavioral Intervention providers and require more frequent re-validation visits.
• Add additional staff at Minnesota Management and Budget to help state agencies improve internal controls, mitigate risks, and build fraud awareness.
• Add additional employees to expand DHS’s capacity to prevent and detect fraud and ensure proper billing.
• Enhance oversight of Charter Management Organizations and tighten procurement and contract bidding integrity for Charter Schools.

Increased Criminal Penalties

• Create a new “Theft of Public Funds” statute that increases criminal penalties by 20% compared to the existing “Theft” statute.
• Make providing kick backs a state crime, and give the Attorney General investigative authority

Tips can be submitted to the BCA’s fraud unit by calling 651-793-3750 or via email at [email protected]. Learn more about the unit at bca.dps.mn.gov.