Minnesota Man Accused of Multi-Million Dollar Fraud Scheme
A central Minnesota man is facing felony charges after allegedly defrauding state and federal assistance programs, and failing to file and pay income taxes for multiple years. Andrew Freeburg, 45, of Carver County, is accused of underreporting income, filing false tax returns, and wrongfully obtaining benefits totaling over $40,000.
According to court documents, Freeburg is charged with one felony count of failing to file an individual income tax return, one count of willfully failing to pay income tax, four counts of filing fraudulent income tax returns, and five counts of wrongfully obtaining assistance. The alleged offenses occurred between 2020 and 2024, with a failure to file in 2022.
The Minnesota Department of Revenue alleges Freeburg underreported his personal and business income by nearly $2 million, resulting in over $186,000 in unpaid taxes. He reportedly operated a business called E-Motors, but allegedly used company funds for personal expenses, including a gym membership and frequent trips to Starbucks.
The criminal complaint further alleges that individuals listed on the E-Motors website did not actually work for the company. Freeburg is also accused of falsely representing the business as owned by his 87-year-old father, who resided in Florida until 2023 and has denied any involvement in the company.
In addition to the tax-related charges, Freeburg is accused of receiving Supplemental Nutrition Assistance Program (SNAP) and medical assistance benefits between 2022 and 2024, totaling more than $40,000.
This is not Freeburg’s first encounter with tax-related legal issues. According to the complaint, he previously pleaded guilty to failing to file income tax returns for the years 2016-2019 but had not made any restitution payments.
The charges come as Minnesota officials grapple with a broader issue of fraud within state programs. On Monday, Tim O’Malley, appointed by Governor Tim Walz to investigate the state’s ongoing fraud problem, stated that the root of the issue dates back decades but is “fixable.”
O’Malley identified a lack of accountability, a culture of compassion overriding compliance, and poorly executed plans as contributing factors to the state’s fraud crisis. He did not elaborate on how these factors specifically relate to the case against Freeburg.
The investigation is ongoing, and Freeburg’s next court appearance has not yet been scheduled. Further details will be reported as they become available.
