Fed prosecutor warns more arrests coming after ‘massive’ fraud found in California homeless services: ‘We followed the money’

A federal prosecutor probing corruption in California’s homeless services promised that more arrests are coming after two real estate executives were busted for allegedly bilking taxpayers out of millions.

First Assistant US Attorney Bill Essayli told The Post a coalition of federal agencies has uncovered wrongdoing on a staggering scale as he blasted Democrats as “colossal failures” for letting corruption fester for years.

“We followed the money and very quickly we uncovered massive amounts of fraud,” Essayli said.

The recent indictments of housing executives Cody Holmes and Steven Taylor were just the tip of the iceberg, as the duo face accusations that they pocketed state funds intended for homeless housing, the prosecutor said.

“That’s just beginning to scratch the surface,” Essayli said. “We have dozens of other investigations ongoing and we expect to bring more charges this year, and perhaps this month.”

Keep reading

Dr. Oz Orders Full-Scale Federal Audit of Minnesota Medicaid Under Tim Walz — Fraud Will Be Clawed Back and Withheld From Future Funding

Dr. Mehmet Oz, acting Administrator of the Centers for Medicare & Medicaid Services (CMS), has formally notified Tim Walz that every Medicaid billing submission in Minnesota will be audited—and that fraudulent claims will be clawed back and withheld from future federal funding.

In early December 2025, CMS Administrator Dr. Mehmet Oz sent a formal letter and issued a public ultimatum to Minnesota Governor Tim Walz regarding the “systemic fraud” in the state’s Medicaid programs, potentially exceeding $1 billion.

Dr. Oz wrote at the time:

“You’ve probably heard the news by now: Minnesota fraudsters stole over $1 billion from Medicaid. And you deserve an explanation.

Our staff at CMS told me they’ve never seen anything like this in Medicaid — and everyone from Gov. Tim Walz on down needs to be investigated, because they’ve been asleep at the wheel. Based on what we know now, this is a clear dereliction of duty.

First, the facts:

In recent years, Minnesota Medicaid launched several new programs, including Housing Stabilization Services, which helped disabled homeless individuals, and Early Intensive Developmental and Behavioral Intervention, which reimbursed therapy costs for families with autistic children.

Some bad actors in Minnesota’s Somali community decided to game the system. And when they got away with it, they decided to go bigger.

The housing program was supposed to cost $2.6 million dollars annually. Last year, it paid out over $100 million. The autism program ballooned from $3 million in 2018 to nearly $400 million in 2023.

These scammers used stolen taxpayer money to buy flashy cars, purchase overseas real estate, and offer kickbacks to parents who enrolled their kids at fake autism treatment centers. Some of it may have even made its way to the Somalian terrorist group Al-Shebab.

So why didn’t Walz stop them?

That’s simple: because he went all-in on identity politics.

Somalis are a huge voting bloc, and the state’s leaders were afraid that “forcefully tackling this issue might cause political backlash.” That’s not me saying that. It’s a Somali-American fraud investigator who talked to The New York Times.

Somali scammers get rich off the programs Gov. Walz was supposed to be managing. Minnesota politicians get elected with Somali votes and keep the money flowing. This isn’t just fraud: it’s political patronage at public expense.

When Minnesota told CMS about the problem last year, they assured us they’d handle it. By summer, it was obvious they couldn’t — or wouldn’t. So, we stepped in and shut down the worst program: housing. We also froze provider enrollment in a few of the most abused programs.

Keep reading

Tim Walz Drops Out of Minnesota Governor Race. Good Riddance.

With dark clouds gathering over his previously sunny reelection bid, Tim Walz has had enough. Minnesota’s Democratic governor announced Monday he would abandon his pursuit of a third term following widespread negative publicity due to his mishandling of welfare fraud allegations.

Walz has not been accused of personal wrongdoing, but the buck stops here, as they say. Walz was the man in charge while fraudsters stole millions, or perhaps billions, of taxpayer dollars by setting up fake charities, ransacking the medical system, and operating dubious child care services. The sheer amount of plunder has attracted national media attention in recent weeks, with even The New York Times throwing Walz under the bus.

The governor’s response has not reassured his critics that he is laser focused on restoring credibility to these programs and mercilessly prosecuting thieves. It is fine to insist, as Walz has, that the entire Somali diaspora not be smeared for the criminal behavior of some community members, but the governor has made a habit of trying to redirect blame to other groups, such as white men. This is unpersuasive, since the accusations against the Somalis are about proportionality, not absolute levels of crime. Moreover, saying that we must be color-blind with respect to the ethnicities of the fraudsters while also calling for more white men to be held accountable is totally incoherent.

Unfortunately, this incoherence is broadly representative of the Walz persona. This is a man who was elevated to national prominence by Vice President Kamala Harris when she picked him to be her 2025 running mate. In Walz’s own clumsily-worded telling, she picked him because he could “code talk to white guys” like himself. He saw his job as reassuring his own identity group that they could vote for a black woman for president. It’s a reductive and extremely flawed notion of what makes for a relatable presidential ticket; Harris underperformed with men—particularly young men—of all racial backgrounds, not specifically white guys. Walz likes football and fixing trucks, so vote Harris/Walz 2024! This is identity politics at its most vacuous.

But it’s not just that Walz’s vibes are off. His governance in the state of Minnesota has been disastrous, even apart from the fraud scandal. Indeed, Walz has achieved a record as hostile to human liberty as virtually any other currently seated governor. He was, first and foremost, a COVID-19 tyrant who zealously enforced social distancing and mask requirements, including by setting up a coronavirus snitch hotline: Citizens were encouraged to report their neighbors to the government for failing to abide by COVID-19 rules. He also spent coronavirus relief money on pet projects and political kickbacks that were obviously outside the scope of what the money ought to have been used for: state workers’ parking costs, teaching women and minority owned businesses how to apply for state contracts, and the Minneapolis zoo.

For supporters of individual liberty, Walz’s various pronouncements on policy issues were like nails on a chalkboard. He said that misinformation was not protected by the First Amendment. (It is.) He said socialism was just “neighborliness.” (He should take that attitude to New York City, where it belongs, unfortunately.) He said it was “not a mistake” to send sick COVID-19 patients back to nursing homes. (Even former New York Gov. Andrew Cuomo has dropped that point.)

Keep reading

JUST IN: Another Georgia State Democrat Lawmaker Arrested and Charged with Defrauding Federal Government

Another Georgia Democrat state lawmaker has been arrested and charged with fraud.

Georgia state Rep. Karen Bennett was indicted by a federal grand jury on Monday for Covid fraud.

Bennett is a pro-BLM, defund the police activist.

Prosecutors said Bennett defrauded taxpayers after she obtained COVID-19 unemployment benefits, despite her business remaining open during the pandemic.

She was charged with one count of false statements.

According to WSB-TV, Bennett was released on a $10,000 bond.

WSB-TV reported:

A second Georgia lawmaker has been charged with defrauding taxpayers by receiving pandemic unemployment assistance that she was not entitled to.

A federal grand jury indicted State Rep. Karen Bennett (D-Stone Mountain) on Monday.

Prosecutors say she received $13,940 for her in-home physical therapy company, Metro Therapy Providers, which she says could not operate during the COVID-19 pandemic.

However, investigators say the company was only briefly closed, and remained open through the majority of the pandemic.

On her application, Bennett only reported receiving income from Metro Therapy and the Georgia General Assembly. But she failed to disclose that she was also employed through a church and receiving more than $900 weekly.

She was indicted on one count of making false statements.

Last month, Georgia Democrat state legislator Sharon Henderson was arrested and charged with defrauding the federal government.

Keep reading

Trump cuts off $10B in funding to five blue states for child care, social services over fraud fears

The Trump administration is cutting off more than $10 billion in social services and child care funding meant for a handful of Democrat-led states over concerns that the benefits were fraudulently funneled to non-citizens, officials told The Post Monday.

The Department of Health and Human Services will freeze taxpayer funding from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant program.

At least $7.35 billion in TANF money will be prevented from going to California, Colorado, Illinois, Minnesota, and New York.

The CCDF funding block of nearly $2.4 billion affects all those states.

Keep reading

BEYOND PARODY: Craigslist Ad From a Daycare Center in Minneapolis Seeks to Hire 20 Child Actors

This is just too funny to be real. A post on Craigslist in the city of Minneapolis is supposedly from a daycare center that is looking to hire up to twenty child actors.

Since anyone can post something on the marketplace/message board website, it could be from anyone, but given the intellect of the Minneapolis fraudsters we have seen in recent weeks, it may very well be real.

In their defense, they are at least offering good money for the actors they seek to hire.

PJ Media reported:

Is a Minneapolis ‘Daycare’ Trying to Hire Child Actors on Craigslist?

Either a Minneapolis fake daycare is actually trying to hire child actors to restart taxpayer funding or someone is playing a truly extraordinary practical joke on Craigslist users.

A listing posted several days ago on Craigslist from “Help Us Daycare” actually advertises a desire to hire “child actors for 3 day contract (Ventura Village).”. The listing claims the daycare lost state funding due to “white supremacy” and asserts that it needs to hire 20 child actors for a few days to show up to the fake daycare because the “ENTIRE client base has already found new daycare services.” So when the state investigators arrive, the listing explains, kids need to be on site. The listing seems too insane to be sincere. On the other hand, when you consider the craziness uncovered in the Minnesota Somali daycare fraud investigation, perhaps this entry warrants a little government scrutiny…

The Craigslist listing rambles, “Due to this insane poor decision clear in white supremacy, we had to close our doors immediately. We must prove we are a function day care to get the funding back. The issue is, the ENTIRE client base has already found new daycare services so we need to find new clients base quickly.” I would feel more confidence in the alleged functionality of the daycare if the person composing this could actually write English.

The crazy listing continues, “To help hurry this state vetting processes, we are looking to hire 20 child actors for 3 days, while state is present on site. We pay up to $1500 actor, per day. If you are interest, please send your child’s age and a note of what makes your child a special actor. Submit phone number as well, as we will be doing quick phone interviews as part of hire process.” The tone is certainly rather desperate.

Keep reading

Mary Moriarty threatens prosecutions over ‘hateful’ messages to Somali community

Amid national attention on fraud in Minnesota, Hennepin County Attorney Mary Moriarty has warned that people who send “hateful” messages to the Somali community could face prosecution.

Meanwhile, it was recently revealed that a Somali national who pleaded guilty in two separate sexual assault cases avoided prison under a plea deal negotiated by Moriarty’s office.

Last year, Abdimahat Mohamed received a three-year prison sentence that was stayed and served no time in prison after pleading guilty in two separate sexual assault cases — one involving the rape of a 15-year-old girl in 2017 and another involving an adult woman in 2024.

In both cases, the most serious criminal sexual conduct charges were dropped. Moriarty’s office defended the plea deal after national attention followed, saying it had lost key witnesses and that the case was “substantially weakened.”

According to a later FBI affidavit tied to federal kidnapping charges, Moriarty’s office also agreed not to charge Mohamed for a third sexual assault from 2018 as part of the plea agreement.

Now, Moriarty has issued a public statement warning that her office is receiving “a large number of reports” of members of the Somali community being sent “hateful, threatening, and disturbing messages.”

The statement blamed “far-right propagandists” for “demonizing an entire group of people” and urged the public to report such messages to law enforcement so cases could be reviewed for prosecution.

Moriarty’s statement included contact information for advocacy organizations and pledged the office would “do everything in our power to keep each other safe.”

Keep reading

UN Security Council Presidency Draws Scrutiny Over Ambassador’s Past Ties to Sanctioned Medicaid Provider

The rotating presidency of the United Nations Security Council may change every month, but the standards represented by those who hold the position should not.

Leadership of the world’s most powerful international security body carries symbolic weight and sends a message about the values the United Nations claims to uphold: accountability, transparency, and respect for the rule of law.

That is why recent scrutiny surrounding the background of the current presiding ambassador from Somalia, Abukar Dahir Osman, deserves serious attention.

Public reporting indicates that before entering diplomatic service, the official was associated with the leadership of a U.S.-based healthcare company funded by Medicaid that later faced serious regulatory and compliance problems, including exclusion from federal healthcare programs. While there is no verified public record of a criminal conviction against the individual, the documented issues tied to the company itself are not disputed.

Keep reading

WOW: Trump Shares Video Questioning if Tim Walz Ordered the Assassination of Minnesota Lawmaker Melissa Hortman to Cover Up Somali Fraud Scheme

President Donald Trump has shared a video questioning whether Minnesota Governor Tim Walz was involved in ordering the assassination of State Representative Melissa Hortman to cover up the Somali fraud scheme.

The post, which Trump shared on his Truth Social platform, suggests Hortman’s murder may have been tied to her efforts to expose a multi-billion-dollar money laundering operation funneling funds to illegal immigrants, particularly Somalis, through corrupt government rackets in childcare and healthcare.

Last summer, Hortman and her husband, Mark Hortman, were gunned down in their home by a man posing as a police officer. Democrat State Sen. John Hoffman and his wife, Yvette Hoffman, were also targeted in a separate incident at their residence on the same night. Miraculously, the Hoffmans survived.

Vance Boelter, a 57-year-old man who was later arrested for the shootings and indicted on six federal charges, including stalking and murder.

According to a press release from the U.S. Attorney’s Office in the District of Minnesota, Boelter conducted “extensive research and planning” before embarking on a “murderous rampage targeting Minnesota’s elected officials and their families.”

It was soon revealed that Boelter was appointed to the Governor’s Workforce Development Board by Walz, and in his confession, he claimed he was ordered to do the assassinations by the governor himself.

The post Trump shared, originally from X user @LightOnLiberty, asks, “Was Minnesota State Rep Melissa Hortman murdered because she voted against and was exposing a multi-billion dollar money laundering fraud going to illegal immigrants in Minnesota?!”

Keep reading

Tampon Tim Walz DROPS OUT of Minnesota Governor’s Race Following Massive Somali Fraud Scandal

The ongiong Somali fraud scandal has brought an end to Givenror Tim Walz’s political carrer in Minnesota.

He has announced he will not seek a third term this morning.

Here is Walz’s full statement via KTTC:

In September, I announced that I would run for a historic third term as Minnesota’s Governor. And I have every confidence that, if I gave it my all, I would succeed in that effort.

But as I reflected on this moment with my family and my team over the holidays, I came to the conclusion that I can’t give a political campaign my all. Every minute I spend defending my own political interests would be a minute I can’t spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who prey on our differences.

So I’ve decided to step out of the race and let others worry about the election while I focus on the work.

I know this news may come as a surprise. But I’m passing on the race with zero sadness and zero regret. After all, I didn’t run for this job so I could have this job. I ran for this job so I could do this job. Minnesota faces an enormous challenge this year. And I refuse to spend even one minute of 2026 doing anything other than rising to meet the moment. Minnesota has to come first – always.

Axios reports that Senator Amy Klobuchar and Attorney General Keith Ellison could now jump in the race.

Keep reading