GOP governor candidate faces criticism for withholding fraud whistleblower tips from DHS

A Republican candidate for governor is facing criticism that she withheld allegations from the state that known fraudsters were receiving reimbursements from Minnesota’s Medicaid program.

Rep. Kristin Robbins, R-Maple Grove, alleged on Wednesday that a defendant in the sprawling Feeding Our Future scheme, which swindled money from a federal nutrition program during the COVID-19 pandemic to finance luxury purchases, has received tens of millions more in state payments through companies purportedly offering Medicaid services.

Robbins said during a hearing of the House fraud committee, which she chairs, that she had shared the information with the U.S. Attorney’s Office for the District of Minnesota but not the Minnesota Department of Human Services or Attorney General’s Office.

In the committee, Robbins said she did “not accept that referring things to the U.S. Attorney’s Office is inappropriate.” She said she was not sharing with the DHS or the attorney general “because of the trust broken with the whistleblowers,” alleging retaliation against those who have spoken up.

But the move is sparking outrage from Democrats, who said she is withholding information that could help stop payments to fraudsters.

“I expect political attacks in an election year,” Gov. Tim Walz said in a statement Thursday. “What is unacceptable is actively withholding information about fraud and blocking investigations in order to advance a political agenda. If there is fraud, it needs to be investigated immediately — not sat on, redirected or used for political theater."

Minnesota is facing a sprawling fraud crisis in its Medicaid program. So far, 15 people — including six announced Thursday — have been charged for allegedly stealing from Medicaid-funded services meant to help vulnerable people find housing or support young people with autism. Criticism of the Walz administration’s response to the problem is a primary line of attack by GOP candidates for office.

“If they have not cross-checked every member of ... Feeding Our Future who have been indicted or convicted and see what other services they are getting from the state, they have failed,” Robbins said during a meeting of the Minnesota House fraud prevention committee. “And I’m asking them today to get that done.”

In a statement, DHS inspector general James Clark asked that anyone, “whether it’s elected officials, state government workers or members of the public, if you suspect fraud, let me know so I can take action.”

Clark said the DHS analyzes data to look for ties between any Feeding Our Future defendants and other state programs.

“We are stopping all payments when there are connections to Feeding Our Future defendants and we are stopping all payments to all affiliated providers when the evidence and legal authority supports doing so,” Clark said. “We are not allowing criminally indicted defendants who have already defrauded Minnesota taxpayers to continue to defraud us.”

Walz called on Robbins to provide information on alleged fraud to the Bureau of Criminal Apprehension and the DHS, which has shut off payments to hundreds of providers as it works to turn off the spigot to alleged fraudsters. DHS Temporary Commissioner Shireen Gandhi said last week that the department’s inspector general had more than 1,300 open cases.

Robbins did not immediately respond to a request for comment. On social media, she said Walz “will be held accountable.”

“While you try to blame me for the fraud you allowed, I am working to expose every single aspect of this corruption,” she wrote.

A growing chorus of Democrats on Wednesday and Thursday criticized Robbins over her handling of whistleblower information.

Rep. Dave Pinto, DFL-St. Paul, is the ranking Democrat on the fraud committee and said in a statement that the hearing provided “more proof that this committee is being run purely for political gain.”

If Robbins uncovered allegations of fraud, Pinto said, her priority should be to have them investigated and payments to alleged fraudsters stopped.

House Speaker Lisa Demuth, R-Cold Spring, who is also seeking the GOP endorsement to run for governor against Walz, defended Robbins on social media.

“There have been credible allegations of retaliation against agency staff who have raised concerns,” Demuth said. “The House Fraud Committee is protecting whistleblowers and working with federal authorities who will take fraud concerns seriously instead of sweeping them under the rug.”

In Wednesday’s hearing, Robbins alleged a Feeding Our Future defendant awaiting trial on money laundering charges was receiving reimbursements from Medicaid for providing assisted living services.

She said the defendant owned three homes that are operated as an assisted living facility by his wife. Robbins said the wife just purchased a fourth and received a provisional license. She said he owns two more as part of a separate facility.