Central Minnesota man accused of running fake business, committing SNAP, medical assistance fraud
A central Minnesota man is accused of filing false income tax returns and defrauding medical assistance and Supplemental Nutrition Assistance Program benefits.
Andrew Freeburg, 45, is charged in Carver County of one felony count of failing to file an individual income tax return, one count of willfully failing to pay income tax, four counts of failing fraudulent income tax returns and five counts of wrongfully obtaining assistance.
Court documents accuse Freeburg of underreporting his income and filing false reports in 2020, 2021, 2023 and 2024. He did not file his return in 2022, according to documents.
Freeburg also ran a business called E-Motors, but spent funds on personal expenses such as a gym membership and "nearly daily trips to Starbucks," the criminal complaint says. The people listed on the website did not work at the company, and Freeburg acted as if the company was owned by his 87-year-old father who lived in Florida until 2023, and who denied being involved in E-Motors, documents say.
According to the Minnesota Department of Revenue, Freeburg underreported his personal and business income by nearly $2 million, and owes over $186,000 in taxes for 2020 through 2024.
He was also receiving SNAP and medical assistance benefits between 2022 and 2024, documents say, receiving more than $40,000 in combined benefits from the programs.
According to the complaint, Freeburg pleaded guilty to failing to file income tax for the years 2016-2019 and had yet to make any restitution payments.
On Monday morning, the man appointed by Gov. Tim Walz to investigate the state's ongoing fraud problem said the root of the problem goes back half a century, but the problems are fixable.
Director of Program Integrity Tim O'Malley pointed to a lack of accountability, a culture of compassion, over compliance and ill-executed plans as some of the causes for the state's fraud crisis.
