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Investigator: Welfare fraud conviction fines skyrocket

2023 conviction fines top $139k

NEW ULM — Brown County Welfare Fraud Investigator Preston Cowing told Brown County commissioners Tuesday that 2023 welfare fraud conviction fines were far greater than the previous 13 years.

Cowing said two 2023 welfare fraud criminal conviction cases totaled $139,229.22 in fines, most of it restitution.

Criminal conviction fines, most of which are usually restitution, were nothing in 2022, $8,448 in 2021, $46,212 in 2020, $58,278.89 in 2019, $32,826 in 2018 and $22,956.62 in 2017 and $1,119 in 2015.

In a 2023 felony forgery conviction case, a 40-year-old Coon Rapids woman was ordered to pay $46,775.45 restitution joint and several with a co-defendant.

According to court documents, a Brown County fraud investigation began investigating a possible fraud report in a personal care assistance (PCA) matter March 1, 2022. The investigator received information that an individual received in-home care services from the Coon Rapids woman and her cousin, based on her disabilities and needs.

An investigation showed the Coon Rapids woman was not providing PCA services and should not have billed $46,775.45 to a company she did PCA work for plus the State of Minnesota. The amount represented wages received from time sheets submitted for 2020, 2021 and 2022.

“Public assistance is changing. It has changed a lot since I’ve been here,” Cowing said.

“With criminal cases, it’s not what we usually think of when we think of public assistance. We think of food support, cash assistance or unwed fathers. The way things have changed. There is so much more going on now since COVID began,” he added.

“Now, we don’t look at assets the way we used to in many program. We don’t look at them at all for SNAP (Supplemental Nutrition Assistance Program). We don’t have asset limits on many of our medical programs,” said Cowing.

Cowing said the legislature reduced the number of times people have to come in and apply and do re-certifications.

“We went almost went four years without renewing a lot of our medical programs. Those are high dollar costs for the State of Minnesota and federal government,” he added.

Cowing said a medical assistance (MA) fraud case he worked on last year totaled almost $100,000.

Commissioner Scott Windschitl said some people are able to “whittle down their income to nothing tax-wise but have all kinds of assets (and qualify for MA). I find it a hard pill to swallow in some cases.”

Cowing said it takes a lot of paperwork and knocking on doors to ask people questions to do fraud prevention.

“Most people want to do the right thing. If we give them a push in the right direction, they’ll do it. Most people pay the money back,” he added.

“I don’t look at this as gloom and doom. I look at it as a job that has to be done,” Cowing said.

Brown County Human Services fraud prevention efforts saved the County $110,266 from July 1, 2022 – June 30, 2023; $214,372 from July 1, 2021 – June 30, 2022 and $188,332 from July 1, 2020 – June 30, 2021.

“This definitely needs monitoring. You’re doing a good job,” said Commissioner Windschitl.

Cowing said Brown County workers do a very good job on welfare cases.

“Thank you for your hard work,” said Commissioner Brian Braun.

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