Federal Agencies Expand Minnesota Operations Amid Prison Purchase and Fraud Raids

Federal agencies are expanding their operations in Minnesota through a major immigration detention facility purchase and a separate fraud investigation involving multiple law enforcement agencies. The Department of Homeland Security (DHS) acquired the Prairie Correctional Facility for more than $495 million, while federal officials announced dozens of indictments following coordinated searches across the state.

The two developments highlight separate federal initiatives in Minnesota: the Trump administration's expansion of immigration detention capacity and its investigation of alleged financial fraud involving health care and child care services.

According to The New York Times, CoreCivic, a private prison operator, previously offered the shuttered Prairie Correctional Facility to the Minnesota Department of Corrections for $75 million. State officials declined the proposal because of financial limitations, staffing challenges and the facility's capacity exceeding their operational needs.

The 1,600-bed facility in western Minnesota subsequently sold to DHS for more than $495 million last summer. The department intends to convert it into an immigrant detention center as part of the administration's broader deportation strategy.

Safia Khan, deputy commissioner and chief of staff for the Minnesota Department of Corrections, described the substantial difference between the original offer and the eventual sale price as unexpected.

"The price tag is so different than the conversations we were having last year. It was a shock," said Safia Khan, deputy commissioner and chief of staff for the Minnesota Department of Corrections.

The purchase comes amid scrutiny of DHS spending. The Government Accountability Office criticized the department's rapidly expanding immigration detention budget last month, describing millions of dollars in spending as "waste" resulting from rushed and poorly planned decisions, according to The New York Times.

DHS has also faced questions over a $464 million no-bid contract for 10 used aircraft purchased this year. The department said the planes were needed for deportation operations, although most had remained largely unused.

Separately, federal officials gathered in St. Cloud on Friday, October 30, to announce a new anti-fraud initiative associated with the Trump administration's "War on Fraud" and the vice president's fraud task force, according to KSTP.

Treasury Secretary Scott Bessent led the announcement. FBI Director Kash Patel, Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz and Federal Trade Commission Chairman Andrew Ferguson also participated.

The announcement followed law enforcement searches conducted across Minnesota on Thursday. Federal agents and local police searched multiple locations, including autism centers in St. Louis Park and Edina. Rochester police also confirmed that officers assisted the FBI with multiple search warrants.

Patel said federal and local authorities executed 17 search warrants, including three at child care centers. Federal officials reported that the investigations resulted in 26 indictments and four arrests.

The cases identified by Patel involved four individuals and alleged financial losses across several health care and related organizations:

Feisal Elmi of Aspen Associates faces 11 counts of health care fraud involving $8 million in intended losses. Jama Mohamod of American Home Health Care faces six counts involving $3.27 million in intended losses.

Faiza Ahmed of Home Sweet Home faces eight counts of health care fraud involving $10 million in intended losses. Habiba Mohamed of Smart Therapy faces one count of conspiracy to defraud the United States involving nearly $20 million in intended losses.

In southern Minnesota, Rochester police described the searches as "pre-planned" operations conducted with federal investigators.

Vice President JD Vance had also been scheduled to visit St. Cloud on Friday but canceled his appearance the previous evening. ABC News cited a source familiar with the matter who attributed the cancellation to a "scheduling change".