Vice President JD Vance announced Wednesday that the federal government will temporarily halt certain Medicaid payments to the state of Minnesota, citing what he described as verified fraud within a state-run program.

Vance said the move is aimed at ensuring Minnesotans are “good stewards of the American people’s tax money.”

'They’re going to fraudsters in Minneapolis. That is unacceptable.'

“We’re announcing today that we have decided to temporarily halt certain amounts of Medicaid funding that are going to the state of Minnesota in order to ensure that the state of Minnesota takes its obligation seriously,” Vance said.

Vance clarified that providers on the ground in Minnesota have already been paid by the state. The federal government is pausing reimbursement payments to the state government, not direct payments to providers.

Credit: Photo by Stephen Maturen/Getty Images

Vance pointed to what he described as a confirmed case of fraud involving a program intended to provide after-school services to autistic children.

According to Vance, some individuals set up “sham businesses,” created fake clients, and even listed individuals “who are not even autistic” in order to collect Medicaid funds.

“A program that existed to ensure that autistic children had access to some after-school services has made a number of people rich,” Vance said, adding that the money “ought, by right, go to American citizens and to American families.”

He argued that the alleged fraud not only wastes taxpayer dollars but also diverts services away from children who genuinely need them.

“There are kids in Minnesota who deserve these services, who need these services, and they’re not going to those kids,” Vance said. “They’re going to fraudsters in Minneapolis. That is unacceptable.”

Photo by Anna Moneymaker/Getty Images

“One of the things I love about our country is that we’re a generous country,” Vance said.

“We take care of our fellow citizens who can’t afford medical care because they’re down on their luck.”

He added that programs like Medicaid and food assistance exist to ensure families have access to “food, medical care, after-school services when their family needs them.”

However, Vance said that in Minnesota and other states, “the generosity and the good hearts of our fellow Americans are being taken advantage of.”

“This is disgraceful. It has happened for too long,” Vance said. “Far too many people have gotten rich by taking what is the best of the American spirit and getting rich off of it instead of providing services to kids who need it.”

Democratic Gov. Tim Walz's office and the Department of Human Services of Minnesota did not respond to a request for comment from Blaze News.

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Epstein-friendly lesbians managing fraud-plagued Manhattan club in hot water — again

Core, an invitation-only private club in Manhattan where membership fees reportedly range from $15,000 to $100,000 a year, has counted among its approximately 1,500 members Blackstone Group CEO Stephen Schwarzman, former Microsoft CTO Nathan Myhrvold, and New York Jets owner Woody Johnson.

Dead pedophile Jeffrey Epstein was also a longtime patron of the club as well as a founding member.

Jennie and Dangene Enterprise — the lesbian couple who run the club — are both under intense scrutiny over their friendship with the child sex offender in light of new insights from the Epstein files.

Jennie Enterprise, however, might be in especially hot water over the apparently irreconcilable sworn statements that she allegedly provided about her club's finances in two separate cases regarding COVID fraud and rent delinquency.

Competing claims

The club entered a 20-year lease with 711 Fifth Ave Principal Owner LLC in 2021 and took over four floors of the building in 2023.

In the years since, the Enterprises have been engaged in a bitter legal battle with property developer Michael Shvo. For instance, the Core Club reportedly sued Shvo in 2024 for $600 million, alleging that he failed to deliver promised upgrades to the 711 Fifth Ave. property and other locations. Shvo, in turn, accused the Core Club of defaulting on its lease at the Transamerica Pyramid in San Francisco.

Last year, the landlord served the Core Club with a termination notice, alleging that it had "defaulted on its obligation to pay the Base Rent and/or Additional Rent under the Lease in the amount of $3,633,787.13 by Aug. 1" as purportedly required under the lease.

Photo by Joe Schildhorn/Patrick McMullan via Getty Images

The Core Club, in response, sought what is called a Yellowstone injunction barring the landlord from terminating the lease and evicting the club.

A judge with New York County’s Commercial Division court obliged the Enterprises in September, finding that their club had "established 'it is prepared and maintains the ability to cure the alleged default by any means short of vacating the premises.'"

Attorneys for the landlord have pointed out an apparent discrepancy between the story that Jennie Enterprise and the Core Club told the court and what they told the U.S. Attorney's Office for the Southern District of New York in their COVID-era relief fraud case in August.

The landlord's attorneys alleged in a court filing on Wednesday that the Core Club secured its injunction "by making materially misleading representations to this Court about its financial health," and has "repeatedly been delinquent" on its use and occupancy payments.

The attorneys noted that in September 2025, the club "represented to the Court that it had a more than sufficient financial ability to cure its default of over $3.5 million in past due rent and that it could continue paying Rent at the Least rate."

'You have influenced my life in a really amazing way.'

While supposedly able to pay millions in allegedly past-due rent, the attorneys noted that the club managed in August to avoid paying back most of the over $4 million that Core Club entities — controlled by Jennie Enterprise — fraudulently received in COVID-era relief funds and paid only a fraction of the $8.1 million consent judgment against the club.

The attorneys highlighted that court documents show that Jennie Enterprise's sworn financial disclosures about the Core Club's "financial condition" to the USAO-SDNY led the government "to accept in compromise" a settlement of only $366,000 spread over several years.

The Wednesday court filing alleged:

These apparent representations by the SDNY Core Defendants to the United States Attorney regarding their supposed inability to pay a civil penalty greater than $360,000 over five years flies directly in the face of Tenant’s representations to this Court regarding its supposed ability to cure its default of over $3.5 million in past due rent and continue paying Rent at the Lease rate.

The landlord suggested that under the circumstances, the injunction should be vacated and further relief should be conditioned on the Epstein club's payment of the outstanding rent.

When asked for comment, the Core Club's attorney Marc Kasowitz said in a statement to Blaze News, "Shvo's latest attempt to relitigate issues the Court has already addressed will fail, just as his others have. Shvo's motion falsely claims that Core violated the Yellowstone order, but Core is current on rent and has fully complied with the Court’s directives."

Kasowitz suggested that the apparent function of the filing was to distract from "pressures surrounding Shvo's broader real estate ventures" and noted, "Core will oppose this motion vigorously and is confident the Court will recognize it as another meritless attempt to manufacture a default where none exists."

Shvo's office did not respond to Blaze News' request for comment.

Epstein's gal pals

The latest trove of Epstein files released by the Department of Justice provides insights into Epstein's involvement with the club and the Enterprises, whose relationship with the pedophile apparently thrived after his guilty plea in 2008 for solicitation of a minor for prostitution.

Epstein not only routinely visited the club's spa and had women in his network attend but clearly made an impression on Jennie Enterprise, who appears to have written to the pedophile just months after his guilty plea, "You are and have always been sooooo special too me ....not sure u will ever know how much you have influenced my life in a really amazing way."

The club recently downplayed Epstein's involvement, telling the Wall Street Journal in a statement that the pedophile was one of 150 members who belonged from 2003 and 2007 but continued thereafter as a client of the club's spa.

Dangene Enterprise often applied Epstein's skin treatments, reported the Journal.

"The Enterprises were never part of this individual’s social world," the club alleged. "He was a sounding board for the Enterprises on a variety of subjects, as he was known to be a highly in-demand, influential financial advisor and philanthropist in New York City."

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Minnesota battles 'ghost students' siphoning taxpayer dollars from financial aid programs

So-called "ghost students" are reportedly fueling a growing financial aid fraud crisis in the Minnesota State Colleges and Universities system and across the country.

These ghost students allegedly steal identities to enroll online and apply for taxpayer-funded financial aid.

'These fraudsters are very well organized and well financed.'

KSTP reported in October that the Minnesota State system, which consists of 33 colleges and universities, had flagged over 7,700 “fraudulent” or “potentially fraudulent” financial aid applications in the 2024-2025 academic year. In nearly 95% of those cases, the ghost students had applied to two-year community colleges. The fraud was identified before any money was distributed.

KSTP discovered two cases in which funds were distributed to fraudsters who had enrolled in a community college. The cases came to light after a man in Hutchinson, Kansas, reported that someone had used his name and Social Security number to collect $13,000. Another individual stated that his information was used to take out two student loans worth over $6,700.

A Minnesota State spokesperson told KSTP in October that at least three schools had paid between $9,500 and $63,500 back to the federal government after discovering ghost students.

Craig Munson, the chief information security officer for the Minnesota State system, addressed the ongoing fraud issues during a Thursday Minnesota House hearing.

“These fraudsters are very well organized and well financed,” Munson said. “Stealing money that was intended for real students in need of financial aid.”

Photo by JHU Sheridan Libraries/Gado/Getty Images

When questioned about how much the fraud scheme has cost the Minnesota State system, Munson did not provide a dollar amount but noted that he believes “we are making very good progress” in addressing the issue.

Munson explained that the school system is still seeing a similar number of fraud cases, but that ghost students are now targeting more four-year colleges and universities.

Photo by: Jumping Rocks/Universal Images Group via Getty Images

“It used to be more of the two-year [colleges], we’re starting to see they’re looking at all colleges and universities,” he said. “It could be a couple of reasons — that they’ve learned the system to its extent, and they want to extend their stay in the system and transfer to a four-year possibly. We’re also seeing some positive reports that many of our two-year colleges are seeing a little bit of a reduction in these fraud attempts.”

During Thursday’s hearing, Munson presented a fraud report detailing the growing threat and recommendations to address it, including implementing an automated identity-proofing system that would cost $1 million to $1.5 million per year.

A spokesperson for the Minnesota State system told Blaze News that enrollment fraud is a problem for colleges and universities across the nation.

“The Minnesota State IT Services team has implemented a variety of safeguards to protect against this threat," the spokesperson stated. "Nationally, there has been a significant rise in this activity and we have been working to install additional safeguards and provide guidance to our 33 colleges and universities for the last two years. Our schools, in partnership with faculty, have been actively managing this problem, identifying ghost students early in each semester and removing them from our systems to ensure only real students can get the classes they need and financial aid is distributed to the students who need it to achieve their academic goals."

"In addition, this last fall a more formal Enrollment Fraud Working Group that includes experts in IT, Academic and Student Affairs, and Audit from the Minnesota State system office, as well as faculty, staff, and student representatives from throughout the system was formed. The goal of the group is to identify additional safeguards the colleges and universities of Minnesota State can put in place to keep ghost students out,” the spokesperson added.

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Kentucky driver’s licensing scandal: 5 charged for allegedly illegally issuing licenses to immigrants in exchange for cash

A federal grand jury indicted several Louisville, Kentucky, residents on February 4 for their alleged involvement in illegally selling driver's licenses to immigrants.

Melissa Moorman, a former clerk at Louisville's Nia Center Licensing Branch, stated that she alerted her supervisor and the Kentucky Transportation Cabinet in October 2024 that several of her co-workers were involved in a fraudulent scheme.

'As alleged in the indictment, this fraudulent scheme involved kickbacks and bribes leading to numerous legally present, non-US citizens obtaining unlawfully issued drivers licenses.'

Moorman told WDRB in August that her colleagues sold licenses to illegal immigrants who could not otherwise legally obtain them, charging them $200 per license. She claimed they were unlawfully selling these licenses four or five times per day for at least two years at multiple driver's licensing branches across the state.

"The employees were being paid under the table," Moorman previously told WDRB. "I immediately let my supervisor know."

Moorman stated that two co-workers began using her computer login to issue licenses illegally after her supervisor instructed her to share her login information, as not all employees had their own.

Moorman claimed that fraudulent Social Security cards and birth certificates were being used to issue driver's licenses and permits to illegal immigrants who never took any driving tests. She further claimed that her co-workers' scheme skipped Homeland Security background checks.

Shortly after reporting the alleged fraud scheme, Moorman claimed, she was fired.

KYTC claimed in a court filing that Moorman was terminated "for legitimate, non-discriminatory reasons not causally related to the alleged whistleblowing activity."

Photo by George Frey/Getty Images

A February 10 press release from the U.S. Attorney's Office for the Western District of Kentucky unveiled criminal charges against five Louisville residents for alleged fraud and money-laundering offenses.

Donnita Wilson, 32; Aariel Matthews, 27; Lazaro Alejandro Castello Rojas, 37; Robert Danger Correa, 41; and one other individual who has not yet been arrested were charged with mail fraud, honest services mail fraud, unlawful production of identification documents, money-laundering conspiracy, and other offenses.

Wilson and Matthews previously worked at the Nia Center office, according to the indictment. Rojas and Correa did not work at any licensing agency but are accused of recruiting and escorting noncitizens to driver's license appointments at the Nia Center.

Rojas and Correa "gained the trust" of the noncitizen applicants "because they professed to know the process or even implied an association with the DMV, spoke the same language, and often had the same or similar countries of origin," the indictment read, adding that most of the applicants "were unfamiliar with processes and procedures for obtaining driver's licenses in Kentucky, and many had difficulty communicating in English."

Federal prosecutors argued that the defendants solicited illegal fees of $200-$1,500 from individuals applying for driver's licenses, promising expedited services, including avoiding lines and bypassing testing requirements.

The applicants were allegedly led to believe the process was legal, according to prosecutors.

The indictment insisted that the driver’s license applicants were legally present, non-U.S. citizens.

"This indictment represents the culmination of an investigation into a scheme by Kentucky Transportation Cabinet employees and others to illegally circumvent Kentucky's process for issuing driver's licenses, thereby issuing invalid licenses to lawfully present, non-U.S. citizens who had not first demonstrated their qualifications to drive on our roads," U.S. Attorney Kyle Bumgarner stated.

"Proper vetting of individuals seeking a driver's license is a prerequisite to ensuring the safety of Kentucky's roadways and ensuring the legitimacy of state-issued identification. As alleged in the indictment, this fraudulent scheme involved kickbacks and bribes leading to numerous legally present, non-U.S. citizens obtaining unlawfully issued drivers licenses."

Photo by: Lindsey Nicholson/UCG/Universal Images Group via Getty Images

Blaze News reached out to Kentucky Democrat Gov. Andy Beshear's office to request clarity concerning whether any of the licenses were issued to illegal immigrants or used to register to vote. The governor's office referred Blaze News to its press release, which stated that the "indictment does not involve issuing licenses to people illegally present in the country."

"During a routine review of credentials applications, KYTC officials identified a number of irregularities and revoked 1,985 credentials. KYTC immediately contacted law enforcement, which began an active criminal investigation," the press release read.

An attorney for Rojas declined to comment, citing the ongoing nature of the case.

The Kentucky Transportation Cabinet and attorneys for Moorman, Wilson, Matthews, and Correa did not respond to a request for comment.

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Here’s Where Prosecutors Should Look For More Evidence Of Somali Daycare Fraud

Prosecuting those involved with sham daycare centers should be relatively easy, using an assortment of readily available financial records.

'Sham businesses': Vance announces the halt of Medicaid funds to Minnesota over alleged fraud

Report: State Medicaid Payments Explode As Fraud Scandals Grow

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Competing claims

Epstein's gal pals

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Here’s Where Prosecutors Should Look For More Evidence Of Somali Daycare Fraud

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Competing claims

Epstein's gal pals

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