Whistleblower Claims Retaliation Within Minnesota DHS

A whistleblower from the Minnesota Department of Human Services (DHS) has been sounding the alarm about alleged misconduct since 2019, but she reports facing ongoing retaliation. Faye Bernstein, who has dedicated two decades to contract administration within the agency, asserts that claims made by Governor Tim Walz about being unaware of the situation are “completely false.”

Bernstein claims that her attempts to highlight illegal contract activities led to a “smear campaign.” She says she was labeled a “racist” and experienced a reduction in her job responsibilities.

Governor Walz to Testify in Investigation of Welfare Fraud

Federal investigators estimate that around $9 billion has been misappropriated through fraudulent entities that posed as child care centers, food programs, and medical clinics. Many of those charged to date are reportedly from Minnesota’s Somali community.

Instead of receiving support for her whistleblowing, Bernstein described the “almost intolerable retaliation” she experienced. In a letter obtained by media outlets, she noted that even “trespassing on all land owned or leased by DHS” was subjected to investigation, at considerable cost to the state.

Challenges in Addressing Alleged Fraud in Minnesota

Bernstein frequently raised her concerns both within the agency and to external oversight bodies, but she felt the responses were always dismissive. Reflecting on her situation, she stated, “The truth is, I was a bad employee,” feeling as though she was becoming a “broken record” by repeating her warnings.

She added, “It would have been completely disconcerting to go on and on about this. To say that leadership wasn’t aware or that the governor wasn’t informed is simply false.” Bernstein identifies as a Democrat and emphasizes that the fraud issues in Minnesota aren’t politically motivated: “As long as I’m a Democrat, we need a governor who’s serious about tackling this problem, regardless of party affiliation.”