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While prosecutors typically see fraud manifest as providers overbilling, Thompson said during a news conference in Minneapolis that companies have been created to provide zero services while pocketing federal funds for international travel, luxury vehicles and lavish lifestyles.

“The magnitude cannot be overstated,� Thompson said. “What we see in Minnesota is not a handful of bad actors committing crimes. It’s staggering, industrial-scale fraud.�

The investigators’ new findings may bolster President Donald Trump in his claims that Minnesota is a “hub of fraudulent money laundering activity� under Gov. Tim Walz, who was the Democrats’ vice presidential nominee in last year’s presidential election.

Trump has capitalized on the fraud cases to target the Somalian diaspora in Minnesota, calling them “garbage� and saying from the in the U.S.

More than 90% of the people charged in the major fraud cases announced before today were of Somali descent, according to the U.S. Attorney’s Office for Minnesota.

Walz has denounced Trump's comments, saying an audit due for completion by late January should give a better picture on the extent of the fraud. He said his administration is taking aggressive action to prevent fraud in the future. A spokesperson for Walz did not immediately respond to an email seeking comment Thursday.

Five new defendants have been charged in connection with a Minnesota housing services fraud, Thompson said. Two of them pocketed $750,000 instead of helping Medicaid recipients find stable housing, he said. Prosecutors allege they used the proceeds to travel to international destinations, including London, Istanbul and Dubai.

One defendant submitted $1.4 million in fraudulent claims, using some of the funds to purchase cryptocurrency, Thompson said. Federal officials say he fled the country after receiving a subpoena.

The five charged include two Philadelphia residents who have been accused of “fraud tourism� after they registered as Minnesota providers, Thompson said, adding that for them the scheme was “easy money.�

They join in September for their alleged roles in the scheme to defraud the Minnesota Housing Stability Services Program.

Prosecutors also named a new defendant accused of defrauding another state-run, federally funded program that provides services for children with autism, alleging he submitted millions of dollars worth of claims for Medicaid reimbursement. One woman previously charged for exploiting that program pleaded guilty Thursday morning, officials said.

Asked who is to blame, Thompson said the state “has not done a good job of mining these programs.�