Attorney general: restitution fund has started payouts; Woodbury Dental Arts claims lead the queue

Deputy Attorney General Jessica Whitney and AARP Minnesota testified to the House Commerce Committee about the Consumer Protection Restitution Account (CPRA), a bipartisan fund created to provide restitution to defrauded Minnesotans when direct recovery from defendants is not possible.

Thomas Elmas of AARP described the fund as a bipartisan, victim-focused tool to increase reporting and enforcement of consumer fraud, particularly affecting older adults. "It's going to be life changing for Minnesota victims of frauds and scams," Elmas said.

Deputy Attorney General Jessica Whitney outlined how CPRA is funded and how the office is using it. She said the statute directs the attorney general's office to transfer 50% of money recovered in consumer enforcement actions to the CPRA, up to $5,000,000 per year, and to deposit restitution that cannot be easily distributed into the fund. Whitney said that, as of a week before the Feb. 18 hearing, about $4.6 million had been deposited into the fund since July 1, 2025, and that the office has begun claims processing.

Whitney described the Woodbury Dental Arts case as the first chronological matter the office is working through: a now-defunct dental clinic whose owner repeatedly practiced after licensure issues, took large prepaid fees and then shut down in March 2024, leaving patients without dental records or dentures. The AGO received more than 300 claim forms for that matter and is reviewing them; Whitney said the office would start issuing checks for that case once it had sufficient confirmation of eligible claimants and expected to begin payments within roughly a month, aiming to complete the initial cases by June 30 (end of the fiscal year).

The attorney general's office described other pending matters that could qualify for CPRA distribution, including contractor judgments (Whitney referenced a $2.6 million judgment against a fraudulent contractor) and individual scam claims. Whitney warned that CPRA is limited by the statutory $5 million cap on some recovery streams and noted the statute's requirement to pay full restitution in chronological order; she recommended that lawmakers consider legislative clarifications and a pro rata option so more victims could receive partial recovery when funds cannot cover full restitution for everyone.

Committee members pressed the AGO on communication and timelines; Whitney acknowledged ongoing outreach efforts (press releases, senior-center visits, partner outreach) and said the office will provide a fuller report in October with detailed accounting of money in and out, lists of eligible consumers and paid claims.

The committee did not vote on statutory changes at this hearing but members requested follow-up materials and timelines from the AGO.