Hennepin County Grant Fraud Allegations Investigation Delayed by Documentation Issues

Duluth Superior, MN, September 19, 2026 —

An investigation into alleged fraudulent applications for a small business grant fund in Hennepin County has been stalled due to a lack of essential documentation from the county government. The Hennepin County Sheriff’s Office has not yet commenced its inquiry into the matter.

County staff were responsible for identifying the fraudulent applications. These applications reportedly involved entities that were either entirely fictitious businesses or legitimate businesses that had not actually applied for the grant funding. The precise number of fraudulent applications or the scope of the alleged fraud was not detailed in the available information.

Officials have confirmed that no taxpayer money was disbursed to individuals or entities associated with the alleged fraudulent applications. This means that, as of the current reporting, public funds designated for small businesses remain protected.

The delay in initiating the law enforcement investigation stems from the county’s need to compile and transfer the necessary documentation to the Sheriff’s Office. The county anticipates fulfilling this requirement and providing the required records to law enforcement agencies within the coming weeks. Following the receipt of these documents, the Sheriff’s Office is expected to begin its formal investigation into the alleged grant application fraud.

Further details regarding the specific grant fund, the timeline of the discovery, or the names of individuals or departments involved were not immediately available. The county has stated its commitment to cooperating fully with the forthcoming investigation once the necessary information is processed and shared.

Story summarized from the original created by Alex Haddon on www.wdio.com, see more information here.

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