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A state review says Minnesota agencies need better oversight, staff training and enforcement in order to combat fraud.

Minnesota’s Director of Program Integrity Tim O’Malley says the state needs an independent watchdog to oversee fraud prevention. 

“Somebody has to call balls and strikes and not feel any concern about offending somebody or causing problems for any individual or any agency,” O’Malley said. 

 to review fraud in the state and make recommendations amid allegations of widespread fraud. He released his 

O’Malley said some fraud in Minnesota could have been prevented.

“Going back to at least the 1970s, every administration and legislative body was put on notice of the vulnerabilities to the program integrity,” O’Malley said. “Stronger prevention measures should have been taken.” 

He said agencies enacted various plans over the years to limit the potential for fraud, but they weren’t executed effectively. 

That’s why he says the state needs an independent fraud watchdog — someone who can oversee progress on these recommendations. 

Legislators have backed that idea, proposing an Office of the Inspector General. The concept has bipartisan support, but lawmakers are 

O’Malley said he did not find that any government officials had broken the law. He said no state employees have been fired over fraud allegations, to his knowledge.

“I have not found any evidence that there was corruption within the government,” O’Malley said. “There's well-intended people who, for a number of reasons, weren't effective in what they tried to do.”

The road map calls on the state to better screen program providers and enrollees, with more criminal history and credit checks and address verification. It also asks state legislators to include funding for fraud prevention in any laws establishing new programs. And, O’Malley said, he wants the state to find ways to track down and recoup money stolen by fraudsters. 

The recommendations will go to state agencies, the governor and the legislature for consideration.

Gov. Tim Walz says many of these issues can be dealt with by the Legislature this session, but his office can take action, too. 

”O'Malley said every governor dealt with fraud. We dealt with it on a large scale,” Walz said. “But I want to be the last governor to have to deal with it on this scale."

Walz is expected to roll out his proposed fixes in addressing fraud later this week.

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Fraud in Minnesota

Estelle Timar-Wilcox

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Peter Cox

A state review says Minnesota agencies need better oversight, staff training and enforcement in order to combat fraud.


State fraud review finds missed warning signs, calls for independent watchdog

A man in a navy suit speaks at a podium in front of U.S. and Minnesota flags.

State fraud review finds missed warning signs, calls for independent watchdog

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