🚨 WATCH: Original Somali Fraud Whistleblower Sounds the Alarm!

Seriously, I do think that there's a national security implication. I think there are lives at stake. And if I could just take a story, every time there was a terrorist attack, Paris, San Bernardino, France, Paris, even the Syrian war, we would, as investigators, we would get together the day after the attack, and we would think, we would ponder amongst ourselves, how much Minnesota taxpayer dollars was being used

to fund that war, that attack? What bought that gun? Where'd that money come from? My name is Scott Stillman. I worked for the Department of Human Services. I started working there in 2007, became the manager of the digital

forensics lab in 2010. My job there was to investigate primarily employee misconduct, especially as it resolved to digital technology, computers, cell phones, servers, emails. As the daycare program grew my duties expanded and I was assigned to go out with law enforcement officers both FBI, Health and Human Services, BCA, local law enforcement and a team of investigators embedded within DHS to execute search warrants at some of the businesses that were allegedly committing some fraud. So my

job was on the front lines. I would go with the police, they'd execute a lawful search warrant, my job was to identify the computers, the servers, and collect them, extract the data from them, do some analysis, but then I would give the deeper data that I took from the computers to a team of people in the Office of Inspector General, which is embedded at DHS. Those people, there's a team of those people, most of those are highly skilled, highly trained, their expertise consists of terrorism, money

laundering, bank fraud, social media investigations, a lot of them are retired law enforcement with highly respected careers. We worked as a team to analyze this data. I got to this point, I was a deputy sheriff with the Washington County Sheriff's Department. I was a detective. My job was to investigate computer crimes and they sent me to a lot of federal training. I've been trained at the Federal Law Enforcement Training Center, as have some of my colleagues and I my skill set is highly specialized in this in this area. If I could mention some of the things that I've worked on they were daycare frauds based out of Department

Human Services and they services and they were significant they were overwhelming the dollar amounts were upwards of $15 million. I was overwhelmed with the data I was receiving. I was overwhelmed

with what I was seeing on the computers and on their cell phones I tracked individuals overseas using their phone to Compounds in the desert In countries that are not friendly to the United States where they would spend months over there while they were operating their DHS daycare business and And why my job was to determine if they were communicating while they were overseas the state of minnesota. I was assigned to the ph.s. Daycare

business and my job was to

determine if they were

communicating while they were overseas and provide that information and that' s how s case went I found the e-mails she sent from

kenya to hennepin county while she was billing for daycare that she wasn't even present for My all my other duties include Medicaid fraud Medicaid fraud specifically in the personal care attendant fraud That the dollar amounts and the scope the size of that far outweigh daycare I've heard it said that daycare fraud is a hundred million I've heard investigators at DHS tell me well

I've heard the news media say it's 50% fraud rate I've had investigators tell me it's closer to 80, 70, 80 percent fraud rate and those investigators are prohibited from disclosing the data to you that they have because of data privacy laws. They go to work every day and they agonize over what they see on the data that they have and that' s why the banks are struggling to keep from disclosing the data to you that they have because of data

privacy laws. They go to work every day and they agonize over what they see on those computers what they do what they see in the bank search warrants they run where that money goes

where it comes from some of those banks some of those when they were doing the banks when they were floating money through the banks It would be deposited at 3 in the morning and the owner of the account would

Quickly transfer it from one account to the next second after second and go through 50 different bank accounts, which is a form of money laundry The The data we were seeing on the phones was especially alarming, wire transfers, pictures in foreign countries. I was concerned, I was deeply concerned.

And not only because of what I saw, but because of what law enforcement was telling me. I worked very closely with law, I was a law enforcement officer, I had a lot of friends in law enforcement. And they all, we worked together,

everywhere from Health and Human Services to FBI to local law enforcement to county sheriffs to state police, we all worked as a team. And some of the things they were telling me and some of the investigations they were working on, I had a hard time sleeping at night. I would encourage you, talk to some of those people.

They'll talk to you. You may have to do it privately, off the record. What they would reveal to you is I think it has a national security implication. I really do. And so do they. I worked on a lot of Medicaid fraud and that the dollar amount of fraud Medicaid fraud

particularly in personal care attendant fraud is way exceeds the daycare fraud But most of that money is going to extravagant lifestyles Drugs Large houses things of that nature But there's no controls or I should say there's a controls are inadequate. They're not enforced. There's few checks and balances When we did the Lillian Richardson case that was in the news

She was on probation in Arkansas for a felony Medicaid fraud conviction and She was running the federal government and she was a member of the federal government of minnesota and she was charged with felony medicaid fraud conviction. She was running 50 different shell companies by shell company I

mean a fraudulent non-existent company up here in minnesota using her family members to use fraudulent means to extract money from the dhs medicaid program. That' s in the the same business. I was told she was up and running again and she was in the dhs medicaid

program and that' s in the newspaper you can look at that when we stopped counting the loss it was $18 million I know it was higher than that. A week

after she was released from jail I was told she was up and running again and started the same businesses and was

collecting money from dhs

because the controls the checks the state of minnesota and the state of minnesota and the state of minnesota and the state of minnesota and the state of minnesota and the

state of minnesota and the

state of minnesota and the state of minnesota and the

state of minnesota and the I was able to get that money back and I was able to get that money back to the agency if I could have that computer so I

could track the money and they

would not give me that computer. There was a way to find that money to get that $5 million back but we never got that money back because we

don'

t know where it went was it

possible to find out? Absolutely but I was prevented. Barb curran is a s not a problem. Barb curran is a newspaper and s some other programs at dhs as

well that I know of where they teach people to train immigrants where they teach them how to find a job. Most of those are the one recently that was in hennepin county court for a trial just a few months ago. He used the

money to have a harem of females. He had 12 females and that's how he's a lifestyle. That's how he used the money he received for that program. Not all of it but a good substantial part of it. The internal controls on these programs really need to be examined I Think And I really appreciate you having me here today to talk about this because I think Seriously, I do think that there's a national security implication

I think there are lives that lie at stake and if I could just take a story every time there was a terrorist attack. Paris, San Bernardino, France, Paris, even the Syrian war. We would, as investigators, we would get together the day after the attack and we would think we would ponder amongst ourselves how

much minnesota taxpayer dollars was being used to fund that war that attack what bought that gun where did that money come

from? Someone should be

tracking that and I think some federal agencies are doing that but there are some impediments to that that you should know about there are some restrictions to that I Think if you had to ask me for a suggestion on this and I've been at DHS for 10 years And I'm no longer there When I wrote that email that was the death knell fell met for me and I I I had to resign

But when I was there I saw the internal controls. I saw the Office of Inspector General which was run and operated by DHS and I saw the controls or lack of controls the checks and balances for these programs and I liken it to a police officer who commits a crime and then turns around and tells us, I'll investigate myself and tell you what I find.

If you really wanna have objectivity and independence and accuracy and full disclosure and transparency, you really might wanna consider taking the investigative component away from the entity that controls and manages it and make them independent I can't emphasize that strongly enough that you are not being told everything There are things out there when they when Fox 9 pulled out my emails

Well, I think there were 12 emails I was a criminal justice attorney and I was a criminal justice attorney and I pulled out my e-mails I think there were 12 e-mails complete pages were redacted and what was redacted were my case statistics I was

required to keep track of how many cases I was running every month the dollar amount of the fraud whether it was organized s government programs are being Victimized by organized crime because a lack of controls and I could show you example after example after example Mostly because of lack of controls

But that's what was redacted from my emails. And if I could say one more thing the data privacy laws in place Prevented me from coming forward. It prevents my co-workers who have just laws are a restriction on me from coming forward and prevents my coworkers who have just as many concerns as I have from coming

forward. The whistleblower laws that control the states control severely restrict me from coming forward and saying what I know and prevent them from coming as well. The data privacy laws the state of minnesota and the state of minnesota and

minnesota are their right for

corruption in the state of minnesota. On fox 9 news report and I have to give a congratulations to fox 9 because they have the courage to come forward and say this and there

were a lot of things they discovered that they didn' t put in their news report and I would encourage you talk to the reporter because there are things in there that That they just didn't think they could quite put out there things that would probably really concern you

But

If I said in my Fox 9 investigation and my interview that I would like to request a federal investigation of how these programs are being run and managed at DHS. And I said that for a reason and I spoke to Senator Ablett about that. But I think it needs to be objective and and somebody who is not controlled by someone in the state state not necessarily you but other individuals who might have an influence on that and on investigation And I think that person that the entity to do that would be the Health and Human Services at the federal level I'm just going to close with saying one thing

This is this is not a long time. I think it' s a problem in minnesota this is not a minnesota problem it started in minnesota but we found an individual in our investigation who was teaching

and training other states to do

this and it'

s spreading

out it'

s in seattle new jersey new york florida georgia it' s everywhere. I appreciate the time that you have you provided me to be here today

Thank You mr. Tillman actually I just we chatted and there were we had a very good discussion you and I and so

Keep them on rule of not doing questions I just asked you to elaborate on some of the things we spoke about that just that didn't come out in your conversation So you talked about you know four main areas where you saw concerns. The childcare thing, which made the news, the PCA program, which you said it was some five times as much, this training program, and then the lack of internal controls, could you just comment a little bit about,

so you gave us some examples of success stories where people have gone to jail, but there's some gaps that you saw. Could you just offer a little thought about in the child care program, what gaps are not being addressed in the oversight by DHS?

Besides the lack of controls, unannounced on-site inspections, background checks, cameras on-site, things of that nature, the restitution levels on those cases are, the investigation of the investigation of the investigation of the suspects cameras on site things of that nature. The

restitution levels on those cases are I would encourage you to look closely I would say I was informed that the deco investigation which is in the newspaper I think they obtained $4 million conviction with restitution on that when that case started I told I was informed by investigators it was actually 40 million in fraud but because of statute of limitations and policies in place not

all of that money could be prosecuted and therefore collected so I would say if there's indications that restitution is taking place I would Verify that

Thank you, and so let me ask the second part and so just the last thing I think I'll have you talk about you mentioned PCA s Can you mention? Some ways that are not being investigated where people commit fraud that you think the department should be doing please

The PCA fraud and Medicaid fraud is rampant. I've, there are not, the controls in place are inadequate. I've been on search warrants where you'll have employees, the police will have the employees there and the phone will be ringing and nurses will be calling and saying I am calling because I just was reported that you had my, you the next day. I' m going to be calling employees there and the phone will be ringing and nurses m

calling because I was reported that you had my you reported I work for you you have my name my date of birth and you' re telling ve

never worked for you. Those are shell companies for the most part a lot of that money is I think there' s a problem with the minnesota county is being diverted to sources that are not helping the real needy minnesotans. I think there

should be an independent audit

of the controls the laws the regulations the checks and balances things of that nature. Thank you. I' m not sure if I' m I don' t to name any names but just I want you to say it not me because we were talking about that and Would you say that we talked about this?

So you had mentioned that there were some examples of undue influence by some people in high positions that were influencing some of the outcomes of some of these investigations Do you want to comment about that?

no names I That's why I asked for an independent federal investigation. I A federal investigation would reveal that there are there other entities involved in this who may may be receiving

Benefits from this fraud and I and I I want to be really careful what I say here because Well, that's fine. I just wanted to approach that topic as well, so this has been and so that's very sensitive and Anyway, mr. Stillman. Thank you. Thank you. It's very sensitive. And anyway, Mr. Stillman, thank you. Thank you.

For your excuse. For your excuse.

Thank you.