A startling revelation has emerged from Minnesota, exposing a potential scheme of massive proportions. Dr. Mehmet Oz, alongside Jim O’Neil, a Deputy Secretary of Health and Human Services, recently brought to light a deeply troubling discovery within the state.
At a converted linen factory in St. Paul, investigators found an astonishing concentration of businesses – over 400 – all operating as Medicaid providers. These companies collectively billed an estimated $380 million, funds directly sourced from taxpayers.
The location itself raises serious questions. Dr. Oz pointedly questioned how such a concentration of healthcare-related businesses could flourish within an industrial complex, a place seemingly unsuitable for vulnerable populations like autistic children or those needing transportation assistance.
He expressed profound concern over the lack of oversight, suggesting a deliberate avoidance of scrutiny. “They weren’t looking,” Dr. Oz stated, “They didn’t want to know this problem was happening here.” He believes increased federal supervision was the only catalyst for these critical questions to finally be asked.
This isn’t a new issue, however. Local investigations, dating back to early 2024, had already begun to uncover irregularities. Reports identified at least 22 providers linked to the Griggs Midway Building receiving $8 million in Medicaid payments.
The core of the alleged fraud centers around a Medicaid-funded housing program designed to assist seniors and disabled citizens. Investigators found evidence suggesting that millions of dollars were claimed for housing stabilization services that were never actually delivered.
Federal agents executed search warrants at multiple locations, including the offices of Brilliant Minds Services, Leo Human Services, Liberty Plus, Pristine Health, and Faladcare Inc. These companies were already under scrutiny from previous local investigations.
According to an FBI affidavit, numerous clients reported receiving little to no assistance despite the companies receiving substantial Medicaid funds. The evidence paints a picture of systematic exploitation of taxpayer dollars, hidden in plain sight.
The scale of this potential fraud is immense, and the questions surrounding it are urgent. Why did this go unnoticed for so long? And who benefited from this alleged scheme at the expense of those most in need?
