Tag: fraud

Sen. Blackburn Just Laid It Out: Fraudsters Are Laughing All the Way to the Bank With Your Money

Sen. Marsha Blackburn said government fraud and improper payments are draining hundreds of billions of taxpayer dollars annually, citing Government Accountability Office estimates that she said reveal a systemic failure across federal programs nationwide.

In remarks focused on federal spending oversight, Blackburn said the scope of fraud extends far beyond any single state and represents a nationwide problem affecting virtually every major entitlement program.

“We know that this issue goes far from Minnesota and into every corner of the country and the Government Accountability Office and this report, I think, is significant,” Blackburn said.

Blackburn cited a GAO report estimating massive annual losses tied to fraudulent activity within government programs.

“It estimates that each year, each and every year that our government is losing between 233,000,000,520 $1 billion to fraud, fraudulent programs, fraudulent claims,” she said.

“So, think about that.”

She described those losses as the result of deliberate misconduct by individuals and organizations seeking to exploit taxpayer-funded systems.

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Joni Ernst, Mike Lee Sound Alarm on Alleged Fraud by Somali-Owned Rehab Center in Minneapolis

Sens. Joni Ernst (R-IA) and Mike Lee (R-UT) are asking the Department of Justice (DOJ) to investigate alleged fraud by a Somali-owned rehab center in Minneapolis, Minnesota, as alleged fraud schemes among Somali-owned nonprofits, daycare centers, and medical transportation companies have been referred to federal investigators.

In a letter to Attorney General Pam Bondi, Ernst and Lee accuse the Minneapolis-based rehabilitation center Generation Hope MN, a Somali-owned business, of accepting millions in federal dollars while having a “troubling pattern of red flags around its legitimacy, operational capacity, and financial stewardship.”

“… we are alarmed that this organization was ever positioned to receive over $1 million in congressionally directed Department of Justice (DOJ) funding despite multiple indicators that should have rendered it ineligible for any federal assistance or grants,” the senators wrote:

Generation Hope MN was established in 2019 and describes itself as a Somali-led organization focused on addiction recovery and substance use disorder services in Minneapolis’ East African community. [Emphasis added]

IRS documents, specifically IRS Form 1023-EZ, which is used to apply for recognition as a 501(c)(3) tax-exempt organization, showed the three directors of Generation Hope MN listed the same address for a five-bedroom home in Minneapolis as their primary residence. [Emphasis added]

Generation Hope MN’s website lists two Minneapolis addresses, including a location on Cedar Avenue. This same address is publicly associated with Sagal Restaurant and Coffee, a Somali restaurant. While the Sagal restaurant’s owner claims Generation Hope MN occupies office space above the restaurant, this shared address with a commercial establishment, combined with the absence of dedicated program facilities or visible service infrastructure, raises substantial doubts about the organization’s independent operations and scale—particularly for an entity purporting to deliver intensive therapy and rehabilitation services. [Emphasis added]

Ernst and Lee are asking Bondi to investigate Generation Hope MN, comparing the business’s financial records as similar to those of Feeding Our Future, the nonprofit that was used as a massive fraud scheme to enrich those, mostly Somali immigrants, involved.

“These financial characteristics closely resemble tactics alleged in ongoing federal investigations into Minnesota nonprofit fraud, including the Feeding Our Future case, in which federal prosecutors allege kickbacks were routed through inflated ‘consulting’ or contractor fees to shell entities,” the senators wrote.

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Minnesota Attorney General Keith Ellison Charges Minneapolis Man with over $3 Million in Medicaid Fraud

A Minneapolis man has been charged for allegedly committing over $3 million in Medicaid fraud in conjunction with a state-licensed home health agency.

Minnesota Attorney General Keith Ellison filed the charges against Mohamed Abdirashid Omarxeyd on Wednesday on “eight counts of felony theft by false representation after prosecutors said he used his company, Guardian Home Health Services, to bill Minnesota’s Medicaid program for services that were never provided or were ineligible for reimbursement from 2020 through 2024,” per Fox News. The report went on:

According to the criminal complaint, Guardian submitted fraudulent claims for personal care aide services, companion care, homemaking, respite care, individualized home support and other community support services. State officials have designated many of these services as ‘high-risk’ for fraud.

Omarxeyd and his wife have been accused of siphoning more than $2 million from the company’s accounts.

“Defrauding programs that provide healthcare to low-income Minnesotans is a truly despicable act,” said Attorney General Keith Ellison. “Since I first took office, my team and I have prosecuted over 300 cases of Medicaid fraud and won over $80 million in restitution and recoveries.”

According to Valley News, Omarxeyd also stands accused of paying “workers less than legally required wages while pocketing the difference” along with with submitting “claims for workers who stated they never provided services.”

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Empty Apartments, Fake Addresses, Stolen Billions: The Somali Transport Empire Walz Ignored

An exchange on Fox News highlighted allegations of widespread fraud involving Minnesota transportation companies, with investigative commentator Nick Shirley describing what he said was extensive abuse tied to state-funded programs and enabled by political inaction.

Shirley appeared with host Jesse Watters to discuss his on-the-ground investigation into transportation providers connected to daycare operations across Minnesota.

According to Shirley, many of the companies receiving taxpayer money appeared to have no legitimate operations at all.

Watters asked Shirley whether community leaders were defending those accused of fraud even if they were not directly involved.

“Like, even if they’re not involved in the fraud, are they still defending the Somali tribe?” Watters asked.

“Well, you heard them,” Shirley responded.

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Somali Suitcase Stash: Feds say $130 million moved from Ohio airport to Minnesota on way overseas

ederal agents investigating a Somali immigrant operation that moved massive amounts of cash in suitcases from the Minneapolis airport to overseas have uncovered a new leg of the courier journey: the Columbus, Ohio airport.

Homeland Security Department officials told Just the News that Transportation Security Administration officers tracked and flagged about $136 million in bulk cash in outbound luggage at the passenger checkpoints at John Glenn Columbus International Airport since November 2023.

The cash movements were made by U.S. citizens of Somali origin who flew out of the Columbus airport en route to either the airports in Minneapolis or Atlanta, and the couriers always declared the cash as legally required on documents, officials said.

“Typically, when they go to Minneapolis, they drop off the cash and then a subsequent courier travels abroad from Minneapolis to Dubai through Amsterdam,” one official familiar with the investigation told Just the News on Tuesday, speaking only on condition of anonymity.

Multiple Somali communities involved

The officials said they appear to have uncovered a massive cash movement operation that gathered money from multiple Somali immigrant communities in the West, Midwest and South that eventually brought luggage filled with currency to Minneapolis for flights overseas.

Just the News reported exclusively last week that TSA detected nearly $700 million in cash in luggage leaving the Minneapolis airport in 2024 and 2025, frequently headed on a route to Amsterdam and then Dubai where U.S. officials lost the tracking. The TSA agents routinely alerted investigators during the Biden years, but there was little interest in probing the money movements further until President Donald Trump took office last year.

The cash movements out of Minnesota’s largest airports by the Somali immigrant couriers were 90 to 99 times larger than the total amounts moved out of major international airports like John F. Kennedy International Airport in New York City or Seattle and Atlanta, officials said.

As investigators began tracking the money backwards throughout its journey, they discovered the operation in Columbus, officials said Tuesday.

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Dr. Oz on MN Fraud: ‘We Are Taking the Largest Action of Its Kind Ever in Medicaid History’

Dr. Oz announced what he described as the largest enforcement action in Medicaid history, saying his administration has begun demanding financial documentation from states and deferring hundreds of millions of dollars in payments amid concerns about fraud and improper spending.

According to Dr. Oz, the move requires states to submit detailed receipts for Medicaid expenditures, with a significant portion of funding potentially withheld while reviews are conducted.

“So we are taking the largest action of its kind ever in Medicaid history, by asking the state to give us all the receipts, and we’re going to defer could be hundreds of millions of dollars,” Dr. Oz said. “A quarter of money that’s not going to go to the state.”

Dr. Oz specifically addressed criticism from Minnesota’s congressional delegation, pushing back on claims that the action would harm residents.

He said the state has sufficient financial reserves to absorb the impact.

“Now I just heard all that belly aching from Congressman and Congresswoman from Minnesota,” Dr. Oz said.

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CA Mayor Drops a Bombshell On the NGO Scheme Defrauding Americans

El Cajon Mayor Bill Wells appeared in an interview with Real America’s Voice host Dan Ball to criticize California’s homeless funding structure, arguing that billions of dollars intended to address homelessness are being allocated without input from local governments most affected by the crisis.

Wells said cities like El Cajon, which he said have absorbed a disproportionate share of San Diego County’s homeless population, are excluded from decisions about how homelessness funds are distributed.

He placed blame on the California Homeless Task Force and county leadership, saying elected local officials are sidelined while non-governmental organizations control the money.

“The County board says we have no idea how much is spent. To make matters worse. They’re in conjunction with a homeless Task Force, that they’re the people who are on that homeless Task Force decide where all the money goes,” Wells said.

“Well, guess who serves on that homeless Task Force. All the heads of the NGOs. So the NGO’s get to make the decisions about where the money is spent and guess where they spend it?”

Ball interrupted Wells to clarify his point, comparing the structure to allowing those who benefit from the funds to control their distribution.

“I’m sorry to interrupt you, but are you telling me that’s like letting the inmates run a prison, so the people that get to say where the money goes. Are the people that are getting the money in the nonprofit groups,” Ball asked.

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If Fraud In Minnesota Looks Bad, Wait Till You See Gavin Newsom’s California 

As a former California state assemblyman who spent four years on the Budget Committee, I had a front-row seat to Sacramento’s obsession with “pulling down” federal dollars, turning welfare programs into a free-for-all.

Then-state Auditor Elaine Howle ran a lean operation, issuing spot-on reports about waste and vulnerabilities — and getting ignored time and again. California maximized payments for SNAP, Medi-Cal, and unemployment insurance with little regard for fraud controls.

That same reckless mindset has fueled scandals across blue states, with Minnesota serving as the appetizer to California’s main course of fiscal disaster.

Minnesota’s Feeding Our Future fraud — where crooks were convicted last March of pocketing $250-300 million in federal child nutrition funds by claiming phantom meals for kids — was a mere fraction of what was to come.

Today, Minnesota’s likely fraud toll has ballooned, with nearly $9 billion in suspected Medicaid scams since 2018, involving fake providers, ghost services, and out-of-state hustlers. Despite 80 charged, 50-plus guilty pleas, and assets like luxury cars forfeited in the Feeding Our Future scam, recoveries are a drop in the bucket. State agencies have ignored red flags, paralyzed by fears of discrimination lawsuits — or even just being labeled “racists.” And that allowed fraudsters to run wild.

But if Minnesota’s the starter, California’s the feast.

The Golden State’s Covid-19 unemployment insurance debacle at the Employment Development Department (EDD) was a masterclass in negligence: $177 billion paid out, with fraud hitting $20 billion by official counts and up to $32.6 billion by independent estimates. Scammers exploited lax ID checks, using stolen Social Security numbers for bogus claims while the real workers who owned those SSNs labored for their daily bread.

The financial recoveries? Pathetic.

And now, in an effort to repay $20-23 billion in federal loans, businesses have been slapped with their fifth year of Federal Unemployment Tax Act (FUTA) surcharges — $84 per employee extra in 2025, rising yearly. In other words, Gavin Newsom’s California punishes job creators for his government’s failure. Interest could soon top $1 billion annually, with ongoing unemployment insurance shortfalls piling on.

Then there’s the expansion of Medi-Cal to cover illegal aliens, fully implemented in 2024. Promised costs: $3 billion or more a year. Actual costs: $9.5 billion, with $8.4 million coming from the General Fund in 2024-25, enrollment nearing 2 million, and per-person expenses soaring.

California isn’t legally allowed to spend federal money on covering illegal aliens. But through the magic of financial fungibility, California has figured out how to force taxpayers in Texas and Florida to pick up the tab. This must stop.

Facing a big budget blowout, Sacramento froze new adult enrollments from January 2026, axed dental benefits for this group, and slapped on $30 monthly premiums starting in 2027. All of this is projected to save roughly $80 million short-term but billions over time.

Yet it still drains resources from citizens, pulling in indirect federal funds while exposing taxpayers to runaway costs.

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James Comer Says Ilhan Omar Is “At the Top of the Suspect List” in Massive Minnesota Fraud Scandal — Ethics Complaints Incoming, Claims Her Husband Profited

House Oversight Committee Chairman James Comer dropped a bombshell this week, suggesting that far-left Rep. Ilhan Omar sits “at the top of the suspect list” in the sprawling Minnesota fraud scandals involving taxpayer-funded daycare and healthcare programs.

The comments came during a pointed exchange with journalist Alison Steinberg, who raised serious concerns about whether members of Congress themselves may have benefited from money funneled through political action committees tied to fraudulent daycare and healthcare schemes.

The Gateway Pundit previously reported that retired Lieutenant General Michael Flynn has leveled explosive allegations against Speaker of the House Mike Johnson, claiming that a lack of accountability regarding massive taxpayer fraud in Minnesota is linked to the Speaker’s own financial networks.

Minnesota has become ground zero for some of the largest pandemic-era fraud cases in U.S. history, involving the alleged theft of hundreds of millions of dollars intended to feed children and provide healthcare services.

Many of these cases have centered on networks tied to Somali-run nonprofits and daycare operations, fraud that went unchecked for years under Democrat leadership.

When asked how Americans can trust Congress to police fraud if lawmakers themselves are implicated, Comer made it clear that there is a formal mechanism to deal with corruption on Capitol Hill.

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Fraud ignored: Former Homeland Security investigator reveals how fraud cases weren’t prosecuted

Jeremy Christenson, a former Homeland Security Investigations (HSI) agent, joined Liz Collin on her podcast and explained how cases of cash smuggling and fraudulent day care centers were ignored by prosecutors.

Christenson, who worked as a Homeland Security Investigations (HSI) agent for 16 years, is also a former air marshal and police officer in Minnesota.

Christensen said many of the cases he investigated “went away into thin air.” He had concerns ever since he started investigating cases of fraud in Minnesota some 10 years ago. But with Somali fraud making national headlines, he had to bring what he witnessed as an investigator to light.

Fraudulent day care investigations, back in 2015

Christenson told Collin that “around 2015, a case landed on my desk from my supervisor. He advised me that the state was running a fraud case regarding daycare fraud in Minneapolis through Health and Human Services or Department of Human Services.”

“Over the next several weeks and months, I attended … planning meetings with this task force of about 20 personnel of various law enforcement agencies, the Health and Human Services, BCA, St. Paul PD, Minneapolis PD and it was all revolving around fraudulent daycares,” Christenson said.

“They were setting up sham daycares, fake bills, fake students, or just enrolling students that never came,” he added.

Christenson also pointed out a suspicious detail: “Never — not one of the daycares I served warrants on, not one person was ever present.”

As for evidence, he explained how investigators found “empty buildings, stacks of invoices, and student records of people that our surveillance showed never went there.”

But what happened next has bothered Christenson ever since. He said the investigative task force “all of sudden, it just evaporated — just went away into thin air.”

As for the investigation into the fraudulent day care centers in the Twin Cities, Christenson said he had “no idea whatever happened with the case.”

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