Wave of apparent fake applicants halts Hennepin County grant program, prompts review of fraud safeguards

Hennepin County shut down a small business grant program after apparently fraudulent applications raised concerns, with $1.5 million in public money left in the fund.

The county said fraudulent applications plagued the recovery program, which was meant to help offset local business losses during Operation Metro Surge. County leaders repurposed the remaining $1.5 million into what they described as a lower-risk program with wide-ranging support such as business consulting for new entrepreneurs.

Two successes came out of the now-ended fund, according to the county: no tax money actually went to fraudsters and legitimate businesses did receive help…

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