Gov. Cox responds to Minnesota fraud reports. Could it happen in Utah?

Gov. Spencer Cox took to social media this week to respond to allegations of widespread fraud in Minnesota.

The U.S. Department of Justice is investigating whether child care and health care centers in Minnesota, many run by members of the state’s large Somali community, fraudulently billed the government. Some estimates put the amount of fraud in the billions of dollars.

The federal government has frozen child care payments to Minnesota while the investigation is ongoing, CNN reported.

In September, the DOJ charged eight people in Minnesota with wire fraud related to a Medicaid-funded housing stabilization program. Also in September, a woman was charged with wire fraud related to a Medicaid-funded autism program.

As reports about investigations of fraud spread in Minnesota, residents of other states are asking: Is it happening here?

Cox: ‘Fraud is unacceptable’

On Monday, Cox posted on X about the fraud allegations in Minnesota in response to a post from House Speaker Mike Johnson, R-La.

“Fraud is unacceptable. Accountability matters,” Cox wrote, then pivoted to address measures the state has implemented to curb possible abuse.

Cox said, “Unlike some other states, our child care providers are regulated, eligibility is verified, benefits are limited to citizens and legal residents, payments go directly to providers, attendance is electronically tracked, and agencies conduct in-person monitoring and regular audits.”

The governor also highlighted Utah’s GRIT operating principles and said that a full review has been initiated to ensure that the state’s safeguards are operating as intended.

How Utah works to prevent fraud at child care facilities

Jared Mendenhall, the director of communications for the Utah Department of Workforce Services, said the state has multiple overlapping safeguards to ensure legitimacy.

Child care providers have to apply and be approved as a licensed provider through the Department of Health and Human Services. The department will also conduct both announced and unannounced visits to these facilities to ensure the provider maintains the standards needed to operate with a license.

“The Department of Workforce Services processes applications from families seeking support in the form of child care subsidies,” Mendenhall wrote in a statement to the Deseret News. “Each application goes through multiple eligibility verification steps prior to subsidy approvals, with regular eligibility recertifications.”

Child care providers are also required to report child attendance and keep detailed records to validate the amount of care received in each facility. Each provider is also subject to audits and monitoring, he added.

“The state welcomes referrals and tips from taxpayers, state employees, and anonymous sources. Each tip is investigated,” Mendenhall said.

Utah’s GRIT principles

The state of Utah launched an initiative in May called “GRIT,” which stands for government reform, innovation and transparency, in response to the federal Department of Government Efficiency.

Unlike DOGE, GRIT didn’t begin with a wave of mass layoffs; instead, it required state agencies to submit suggestions for efficiency improvements over the summer. GRIT aims at “building a culture where every employee is empowered to solve problems and every taxpayer sees the results.”

“Utah’s GRIT operating principles mean zero tolerance for fraud, waste, or abuse,” Cox wrote in his X post on Monday.

Utah’s state auditor independently monitors fraud in the state

Tina Cannon, the current Utah state auditor, was elected to her position in 2024 and sworn into office in January.

The State Auditor’s Office provides an independent assessment of the financial operations of local government agencies. The office also investigates any claims and accusations of fraud or mismanagement of government funds.

The situation in Minnesota is very specific to that state’s circumstances and the population there, Utah officials said.

And while Utah isn’t in the same situation as Minnesota, a spokesperson for the auditor’s office said they are looking into everything they can and working to ensure this type of fraud doesn’t happen.

“We’re on the job and we are looking,” said Rahn Rampton, the director of communications in the auditor’s office.

When federal funds come into state and local agencies, certain accounting processes are required and the auditor’s office makes sure those processes take place. The office makes sure that all state agencies are complying with federal requirements.

There are also government auditing standards required to be followed by each state, and each state has its own official tasked with following those standards.

The state auditor is independently elected and is independent from all other state entities.

“We are looking at all these things to ensure that those requirements are met and that there isn’t anything going on. And as we do that and we see something, we may dig in deeper and go into greater detail in that agency or that entity,” Rampton said.

Feds launch major investigation into Minnesota fraud accusations

Last week, YouTube content creator and independent journalist Nick Shirley posted a viral video in which he claimed to find widespread fraud at a number of day care centers run by members of Minnesota’s Somali community.

Following Shirley’s video, the FBI and Department of Homeland Security said they would launch a “massive operation” in Minnesota, per Fox News.

In a post on X, Homeland Security wrote: “Our agents are conducting a massive operation to identify, arrest, and remove criminals who are defrauding the American people at daycares, health care facilities, and other suspected sites. We will not stop until we’ve rooted out this rampant fraud plaguing Minnesota.”

Shirley’s viral video about the fraud was reposted by Vice President JD Vance and former DOGE leader Elon Musk and has been viewed millions of times on X and YouTube.