Minnesota stops payments to providers of housing programs in the middle of the fraud survey

In the future, Walz said, it will take more barriers in place, even if it slows organizations doing legitimate work.

DHS commissioner John Connolly said on Monday that the agency was “very concerned” by fraud in the program.

Connolly responded to the comments Thompson made to KSTP that fraud in state programs could reach $ 1 billion when current federal surveys are finished.

Thompson told KSTP that the “vast majority” of housing stabilization service providers was fraudulent.

“It’s, I think, a huge problem for the program,” said Connolly. “It is a threat throughout the program, because it diverts the resources of people who need it and providers who provide services.”

He said that DHS officials have taken measures to designate “high -risk” suppliers and carry out additional monitoring. Connolly said that the FBI research providers earlier this month was carried out jointly with the DHS and that the State Agency provided information from its investigations to federal laws responsible.