Minnesota fraud whistleblowers warned to stay silent: ‘You’ll lose your job.’

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00:00Minnesota fraud whistleblowers warned to stay silent.

00:03You'll lose your job.

00:05Whistleblowers exposing fraud in Minnesota's state-run programs

00:09are facing serious threats,

00:11according to State Representative Marion Rarick.

00:14State lawmakers testified before the House Oversight Committee

00:17about multi-million dollar fraud schemes in Minnesota,

00:20claiming that officials blocked attempts to tackle financial misconduct,

00:24a number of social service programs,

00:26including child nutrition, autism services,

00:28and housing stabilization, were targeted by fraudsters,

00:32with one prosecutor describing the operations as

00:35industrial-scale fraud.

00:37The panel heard testimony from four witnesses,

00:40GOP state representatives Kristen Robbins, Walter Hudson, and Rarick,

00:45as well as Brendan Ballew, a former Justice Department prosecutor,

00:49testifying on behalf of the Democrats.

00:51State lawmakers testified before the House Oversight Committee

00:54about multi-million dollar fraud schemes in Minnesota.

00:57GOP lawmakers used the scandal to pressure Governor Tim Walz.

01:02For years, Republicans claimed that Minnesota fell behind

01:05in addressing what federal prosecutors labeled

01:07the largest pandemic fraud in the United States.

01:10The controversy resurfaced last year,

01:12with GOP lawmakers using the scandal to pressure Governor Tim Walz,

01:17who recently announced he will not seek a third term.

01:20In December, Republicans on the Oversight Committee

01:22opened an inquiry into how Walz handled the fraud cases.

01:25Rarick alleged that the Walz administration

01:28seriously retaliated against whistleblowers.

01:31At the hearing, Rarick testified that whistleblowers

01:34face a constant fear of retaliation

01:36that has only intensified under an avalanche of fraud in Minnesota.

01:40She alleged that the Walz administration

01:42seriously retaliated against whistleblowers.

01:45Retaliation has been going on for quite some time,

01:49and it's now escalated.

01:51You're going to lose your job.

01:52You're going to lose your home.

01:53They'll track your children.

01:54They'll make sure you can't get a job anywhere Democrats control.

01:58Rarick warned.

01:59While Democrats on the committee acknowledged the seriousness of fraud,

02:03they emphasized that communities should not face unfair penalties.

02:06They added that their GOP colleagues

02:09had acted hypocritically in addressing fraud allegations.

02:13In his opening statement,

02:14Representative Robert Garcia, the panel's top Democrat,

02:17recognized the risks of fraud but cautioned,

02:20What we should not do is use fraud as an excuse

02:22to rip away aid from innocent people

02:24who follow the rules and need help in our society.

02:26We'll see you next time.

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