A longtime Minnesota Department of Human Services employee, Faye Bernstein, testified before the House Fraud Prevention and State Agency Oversight Policy Committee on April 23, 2026, renewing allegations of widespread fraud and systemic retaliation within the state's largest agency.
Bernstein, a 20-year state worker and lifelong Democrat, informed legislators that she first identified risky grant contract practices in the Behavioral Health division seven years ago. She alleged that her attempts to raise concerns internally were met with a smear campaign by agency leadership.
According to Bernstein's testimony, the retaliation included being escorted from her building in July 2019 after she emailed 133 colleagues about her concerns. She claimed she was subsequently slandered, falsely accused of racism, and shifted to other duties to hinder her professional standing.
"What really struck me was the attitude of leadership when I would bring it up," said Faye Bernstein in an interview with 5 INVESTIGATES. "There always seemed to be a reason why it was better to just look the other way."
DHS Program Integrity Director Tim O’Malley submitted a 50-page report to lawmakers during the hearing, citing a "too trusting mindset" as a factor in state vulnerabilities. The report noted that the system was biased toward facilitating payments rather than safeguarding taxpayer funds.
DHS Commissioner Shireen Gandhi addressed the allegations of retaliation, stating that employees who feel...
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