She warned DHS about fraud risks years ago. Now this Minnesota state worker is speaking up again.

A longtime worker at Minnesota’s Department of Human Services (DHS), who blew the whistle on DHS’s oversight of taxpayer cash, is renewing these issues because the state’s largest company grapples with an unprecedented disaster.

Allegations of widespread fraud in multiple state Medicaid programs are driving state and federal investigations, in addition to proposed reforms on the legislature.

“I would love to just say ‘I told you so!’” mentioned Faye Bernstein in a uncommon, on-camera interview with 5 INVESTIGATES.

Seven years in the past, Bernstein says she recognized “risky” practices in how DHS’s Behavioral Health division dealt with grant contracts for psychological well being and substance use dysfunction remedy.

“I was not aware at that time of any current fraud, but I was concerned about the risk,” she mentioned. “It was the kind of practices that we wouldn’t want to be doing, because it would allow fraud in.”

Bernstein mentioned she took her issues up the chain of command, speaking with a number of individuals about the problems she was seeing. She mentioned nothing improved.

“What really struck me was the attitude of leadership when I would bring it up,” Bernstein mentioned. “There always seemed to be a reason why it was better to just look the other way.”

In July 2019, her frustrations hit a fever pitch. Bernstein wrote a two-page e-mail detailing her expertise to 133 fellow DHS workers.

Hours later, she mentioned she was escorted out of the constructing. The following day, she obtained a letter from HR notifying her that she was beneath investigation.

“I was reprimanded for not doing work, which was correct,” Bernstein mentioned. “Completely agree. I was not going to do these contracts that shouldn’t be done.”

A DHS spokesperson confirmed Bernstein was issued a proper self-discipline letter for worker misconduct.

Bernstein went again to work however didn’t stay silent.

A month after she was walked off DHS property, she sat earlier than a Senate committee hearing, warning about contract points and detailing the retaliation she felt she skilled after she spoke up.

“What I was pointing out, originally, was quite routine and it was simply my job,” Bernstein testified.

She returned to the State Capitol final month to testify once more, this time in entrance of the House Fraud Prevention and State Agency Oversight Policy Committee.

During that committee assembly, Program Integrity Director Tim O’Malley introduced along with his more than 50-page report on the roadmap to combatting fraud in state applications.

“Minnesota’s fraud vulnerabilities have existed for decades,” O’Malley wrote. “A ‘too trusting mindset’ and a system biased toward facilitating payments — rather than safeguarding funds — contributed to creating opportunities for exploitation.”

The doc additionally laid out a framework for find out how to shift tradition, a criticism Bernstein leveled in opposition to present leaders within the division.

“I don’t see how we can escape it, unless there is mass firings up above,” she mentioned.

in a recent interview with 5 EYEWITNESS NEWS anchor Kevin Doran, DHS Commissioner Shireen Gandhi addressed criticism that the company ignored whistleblowers who complained about fraud or raised crimson flags.

“I get very upset when I hear that people feel they are being ignored,” she mentioned. “That is not okay. I know people feel that way, and I know some people feel they’ve been retaliated against. And I would say that if you don’t feel comfortable coming to us, please report to the Bureau of Criminal Apprehension, report to the OLA. What’s most important is that we get the information so we can act on it, because we don’t want this continuing to happen.”

DHS mentioned they’re seeing a gentle enhance within the variety of workers reporting points to the division’s compliance hotline.

“In 2024, only eight reports came in from employees. In 2025, we had 42 employees report concerns; and nine reports from employees in the first quarter of 2026,” wrote an company spokesperson in an e-mail.

Bernstein mentioned she is speaking out as soon as once more to convey consideration to points that she feels have been ignored a decade in the past and to encourage others inside the company to return ahead.

“I’m going to keep talking about it because if you’re going to blow the whistle, you might as well blow it really, really loud,” she mentioned.

Are you a present or former state worker with an analogous expertise? Investigative reporter Kirsten Swanson needs to speak. You can attain her at kswanson@kstp.com.

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