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$7.2 Million from a PO Box, Unanimous Jury Decision Overturned [WATCH]

Dustin Grage accused Minnesota state government agencies of failing to carry out basic oversight requirements for years, arguing that the absence of site visits in high-risk programs has allowed large-scale fraud to go unchecked.

Grage said the issue dates back more than a decade and centers on the Child Care Assistance Program.

“This going back to 2013 with CCAP. This is where it started,” Grage said.

He explained that the programs were supposed to include routine verification.

“But you know, there’s at least an annual site visit in there, in these 14 high risk programs right now,” he said.

According to Grage, even those requirements are no longer being enforced.

“Jason, site visits aren’t even required in many cases,” he said.

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Grage pointed to a recent criminal case in Minnesota as an example of how the lack of investigation has had legal consequences.

“We actually had a recent jury conviction get overturned by a judge here in Minnesota,” he said.

He said the reversal was tied directly to the state’s inability to verify basic facts.

“And in that case, a DHS investigator stated that, well, we couldn’t go investigate it to find out that this business was just simply run out of a PO Box and was legitimate.”

Grage said the justification given by investigators was a lack of resources.

“We can’t afford to do that,” he said.

He contrasted that explanation with the scale of alleged fraud he says has occurred.

“But for some reason, we can now afford anywhere from eight to $19 billion in fraud, but we can’t afford to do site visits.”

Grage also cited a recent example he said illustrates how little oversight is taking place.

He referenced video footage involving a Minnesota learning center.

“And one of the funny videos you’ll see out there recently is Nick Shirley coming to Minnesota a learning center,” Grage said.

He said the condition of the building itself raised questions about whether inspections had occurred at all.

“Except the problem in this case, and this is how you know these site visits aren’t actually occurring, because on the side of the building it says Learing Center,” he said.

“They couldn’t even spell Learning Center correctly.”

Grage said that detail reflected a broader failure to investigate. “And that just goes to show how deep the fraud is and how people are unwilling to investigate it at all,” he said.

“It’s absurd.”

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