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Thursday, March 12, 2026

Minnesota fraud whistleblower says 'lack of guardrails was pretty shocking' - Fox News

A Minnesota woman employed by the state’s Department of Human Services is speaking out against what she describes as incompetence within the department following the discovery of rampant fraud in the state’s health care system.

Faye Bernstein told the City Journal in an interview that she first began to realize the high risk of fraud at Minnesota’s DHS in 2018 and 2019 following a promotion to a lead position.

"Over the years, I had often thought that DHS is sloppy," she said. "But 2018 and 2019 are when I saw, oh gosh, this is beyond normal. If we don’t have fraud today, we’re going to have fraud soon."

Bernstein has been a DHS employee for two decades, working in contract management and as a compliance officer, she told the outlet. In her lead position, she said she was able to see all the contracts being worked on by those in her division and witnessed conflicts with the contracts that could be deemed risky.

"I was aware that our contracting processes were leaving us completely open to fraud," Bernstein said. "But to realize the lack of guardrails was pretty shocking."

Federal prosecutors estimate that up to $9 billion was stolen through a network of fraudulent fronts posing as daycare centers, food programs and health clinics. The majority of those charged, so far, in the ongoing investigation are part of Minnesota's Somali population.

When she tried to report the issues at the time to her deputy director, Bernstein said she was told to stop asking questions....



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