Tag: fraud

MINNESOTA SCANDAL EXPLODES: Over 480 DHS Employees Accuse Gov. Tim Walz of Orchestrating Massive Cover-Up — Retaliated Against Whistleblowers to Shield Somali Illegal Fraud Ring That Stole Over $1 Billion

Minnesota Governor Tim Walz is under fire after employees from the Minnesota Department of Human Services (DHS) issued a bombshell statement accusing the far-left governor of orchestrating a sweeping cover-up to shield a sprawling Somali immigrant fraud ring that stole more than $1 billion in taxpayer funds and punishing whistleblowers who tried to stop it.

According to DHS insiders, Walz not only ignored early warnings but actively retaliated against agency employees who sounded the alarm.

They now accuse his administration of using political intimidation, monitoring, threats, and agency manipulation to suppress evidence and silence witnesses.

As The Gateway Pundit reported, 70 members of the Somali community in Minnesota were involved in stealing $250 million in COVID funds that were intended to feed children.

Millions of dollars were stolen from American taxpayers and sent overseas to Somalia, and 80% of the money has not been recovered.

Seven defendants were tried in connection with the scheme on charges related to stealing more than $40 million in taxpayer funds, and five were found guilty. However, the FBI is still investigating an attempt by a Somali woman to bribe one of the jurors with $120,000 in cash.

However, the fraud extends deeper, with multiple schemes of this nature occurring over the last five years.

Per the New York Times, “Federal prosecutors say that 59 people have been convicted in those schemes so far, and that more than $1 billion in taxpayers’ money has been stolen in three plots they are investigating.”

During an interview with NBC’s Kristen Welker, Walz responded by touting Minnesota’s “generosity” and claiming the state attracts opportunists because it is “prosperous and well-run.”

Rather than taking accountability, he dismissed concerns about foreign-led theft as lazy demonization.

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Trump Frees Executive Who Defrauded Thousands

President Trump has commuted the sentence of David Gentile, setting the private equity executive free after serving less than two weeks of a seven-year prison term for his role in a $1.6 billion fraud scheme. Gentile was convicted in August 2024, alongside co-defendant Jeffry Schneider, on securities and wire fraud charges and sentenced in May. Prosecutors said they used private equity funds controlled by Gentile’s firm, GPB Capital, to defraud about 10,000 investors. US attorney Joseph Nocella Jr. said the sentences were “a warning to would-be fraudsters that seeking to get rich by taking advantage of investors gets you only a one-way ticket to jail.” Gentile, 59, reported to prison on Nov. 14 and was released Wednesday, the New York Times reports.

The commutation, unlike a pardon, does not erase the conviction. Schneider, who received a six-year sentence, has not been granted clemency. Prosecutors for the Eastern District of New York, said Gentile and Schneider misrepresenting fund performance and used investor capital to make distribution payments, creating a false appearance of profitability. Victims, described as “hardworking, everyday people” including small-business owners and veterans, submitted over 1,000 statements detailing their losses. One investor wrote, “I lost my whole life savings. I am living from check to check.” A White House official defended Trump’s commutation to Reuters.

The claim by the Justice Department during the Biden administration of a Ponzi scheme was “profoundly undercut by the fact that GPB had explicitly told investors what would happen,” the official said. “At trial, the government was unable to tie any supposedly fraudulent representations to Mr. Gentile.” It’s not clear whether the commutation will affect financial penalties, per the Times. In June, prosecutors sought forfeitures of more than $15.5 million from Gentile and $12 million from Schneider, and a court-appointed receiver has access to over $700 million for potential distribution to investors. Civil claims against GPB Capital are ongoing. Adam Gana, an attorney for investors, criticized the release of Gentile, saying, “This guy belongs in prison.”

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Arizona Senator Ruben Gallego Lied on VA Mortgage Application, Claimed DC as Primary Residence – Kari Lake Calls for Investigation: “Is His Main Residence in DC or Arizona? That is a Crime.”

Kari Lake is calling for accountability for her 2024 Senate opponent, Ruben Gallego, over a $940,000 VA-guaranteed loan for a DC home that he fraudulently secured in 2022 by listing the address as his primary residence.

Kari Lake faced Gallego in the 2024 general election for Arizona’s US Senate seat but lost under mysterious circumstances. Lake also said in a recent interview with The Gateway Pundit, “When we start to dig further into the election fraud that’s been happening for a long time in Arizona, I think there’s gonna be some hell to pay.”

Despite being a Congressman from Arizona at the time, he listed his Washington, DC home and his Phoenix, Arizona Home as primary residences to secure a more favorable interest rate. Gallego abused the Department of Veterans Affairs home loan program, which is designed to make it easier for veterans to buy a home with a lower down payment and a lower interest rate, for use as a primary residence. The loan can only be used for a second home if the home is occupied as a primary residence.

As Politico reported in 2023,

When Arizona Senate candidate Ruben Gallego bought a house near Capitol Hill last year, he claimed the Washington property as his primary residence as part of a special mortgage rate afforded to military veterans.

But Gallego and his wife also say a home they own in Phoenix is their primary residence.

The loan documents for the Washington property, obtained by POLITICO, confirmed he counts D.C. as his primary home even though his campaign maintains he resides in Arizona. Politically, it means the Democratic congressman aiming to take out Sen. Kyrsten Sinema (I-Ariz.) in a hotly contested race next year may have to explain why he declared he was primarily a resident of the nation’s capital.

Gallego signed terms for a Veterans Affairs-backed loan in which he agreed to “occupy, establish, and use the Property as [the] Borrower’s principal residence within 60 days,” according to the loan document.

In September 2024, Lake highlighted this scandal, while condemning Gallego’s horrendous record, including his involvement in opening a bank for illegal aliens that defaulted and robbed its clients, working for a company that settled for $2.8 million in a medicare fraud investigation, and walking out on his wife when she was nine months pregnant to shack up with a DC lobbyist with whom he had a secret wedding.

Notably, his marriage license with wife Sydney Gallego is also from Washington, DC.

“I actually live in this state. And on federal forms, he said he lives in Washington, DC; that’s his main residence,” Lake said.

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Retarded Gov. Tim Walz Dodges Accountability for His Somali Illegals Committing Fraud in Minnesota, Says Minnesota Just “Attracts Criminals” – “But to Demonize an Entire Community on the Actions of a Few, It’s Lazy!”

Minnesota Governor Tim Walz on Sunday responded to revelations that more than $1 billion in federal COVID funds have been stolen by Somali Immigrants in Minnesota, dodging responsibility, touting his state’s generosity, and attempting to deflect blame from Somali aliens defrauding taxpayers. 

As The Gateway Pundit reported, 70 members of the Somali community in Minnesota were involved in stealing $250 million in COVID funds that were intended to feed children. Millions of dollars were stolen from American taxpayers and sent overseas to Somalia, and 80% of the money has not been recovered.

Seven defendants were tried in connection with the scheme on charges related to stealing more than $40 million in taxpayer funds, and five were found guilty. However, the FBI is still investigating an attempt by a Somali woman to bribe one of the jurors with $120,000 in cash.

But the fraud goes deeper, with multiple schemes like this over the last five years.

Per the New York Times, “Federal prosecutors say that 59 people have been convicted in those schemes so far, and that more than $1 billion in taxpayers’ money has been stolen in three plots they are investigating.”

Surprisingly, far-left NBC host Kristen Welker actually pressed him with a tough question, asking whether he takes responsibility for not stopping the fraud, which amounts to “more than Minnesota spends each year to run its Department of Corrections.”

And Walz gave a bizarre answer, championing his policies that “attract criminals.”

“We’re doing everything we can, but to demonize an entire community on the actions of a few, it’s lazy!” he added.

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New York Times Admits Minnesota Gov. Tim Walz Oversaw ‘Staggering’ Levels Social Security Fraud — Over $1 Billion Stolen by Somali Migrants

The left-wing New York Times has admitted that Minnesota Governor Tim Walz oversaw a “staggering” level of fraud across the state’s social services.

In a piece published on Saturday, the Times argued that Walz, who last year became one of the least successful vice-presidental nominees in living memory, had overseen a level of fraud “staggering in its scale and brazenness,” largely by the state’s Somali community.

Their report states:

Over the last five years, law enforcement officials say, fraud took root in pockets of Minnesota’s Somali diaspora as scores of individuals made small fortunes by setting up companies that billed state agencies for millions of dollars’ worth of social services that were never provided.

Federal prosecutors say that 59 people have been convicted in those schemes so far, and that more than $1 billion in taxpayers’ money has been stolen in three plots they are investigating.

That is more than Minnesota spends annually to run its Department of Corrections. Minnesota’s fraud scandal stood out even in the context of rampant theft during the pandemic, when Americans stole tens of billions through unemployment benefits, business loans and other forms of aid, according to federal auditors.

Outrage has swelled among Minnesotans, and fraud has turned into a potent political issue in a competitive campaign season. Gov. Tim Walz and fellow Democrats are being asked to explain how so much money was stolen on their watch, providing Republicans, who hope to take back the governor’s office in 2026, with a powerful line of attack.

However, Walz is unwilling to confront the issue over his fear of losing Somali voting base, who may seek to replace him with an even more radical candidate of their own, most likely in the style of Congesswoman Ilhan Omar.

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Sweden: $375 Million in Fraudulent State Welfare Funds Siphoned Off by Foreign Criminal Gangs Ravaging the Nation

A government investigation has revealed Sweden’s catastrophic betrayal, exposing how the nation’s welfare state—forged through centuries of Swedish ingenuity, sacrifice, and national pride—has been hijacked by criminal gangs, overwhelmingly fueled by unchecked mass migration from third-world countries.

The probe finally rips the veil off a scandal that Sweden’s globalist elite—those cosmopolitan liberals and social-democratic enablers who have ruled the country for decades—deliberately buried, ignored, and denied while the rot spread unchecked through the Swedish state apparatus.

Thousands of these gang members, many with deep roots in Sweden’s migrant enclaves, have been taking state handouts for years, draining the equivalent of over €325 million ($375 million) straight from the pockets of honest, tax-paying Swedes who built this system for their own people.

These so-called “benefits”—from fake sickness payouts to unemployment welfare—have become a taxpayer-funded safety net for these foreign predators, bankrolling their empires of drug dealing, extortion rackets, and brutal violence that terrorize Swedish streets and erode the country’s national sovereignty.

What this report unmasks is a national disgrace. Sweden’s jewel of a welfare system—a beacon of excellence built by generations of Swedes—has become little more than a slush fund propping up the fake refugees and economic migrants from the Third World who are dismantling the Swede’s one and only homeland from within, all thanks to spineless, traitorous globalist elites and their open-borders insanity.

Nils Öberg, chief of the Social Insurance Agency, conceded what patriotic Swedes have known for years—these migrant-dominated crime syndicates have embedded welfare fraud into their anti-Swedish operations, treating its national treasury like their personal ATMs.

The investigation shines a bright light on the ugly reality. Foreign-born individuals and their descendents, imported en masse under reckless, delusional multicultural fantasies, dominate the ranks of these welfare-scamming gangsters, proving once and for all that mass migration isn’t “enrichment”—it’s a direct assault on Sweden’s cultural and economic integrity.

One fraudster, claiming total disability to milk the system, was caught pumping iron in gyms, jetting off on lavish trips, and orchestrating gang hits—all while living off Sweden’s generous social welfare system designed to help vulnerable Swedes.

Another unemployed migrant was exposed as the kingpin of a sprawling criminal empire with over 30 convictions, yet still collecting welfare checks courtesy of our liberal-globalist policies that prioritize migrants—mostly military-aged men from alien cultures—over native Swedes.

Thousands of these gang-linked migrants declare such small “legal” earnings that the Swedish state is obligated to pick up the tab for their child-support payments, costing hardworking families another €10 million annually in this grotesque wealth transfer from Swedes to foreigners.

Authorities also found deep infiltration of legitimate businesses by these criminal networks, where they own, run, or manipulate companies to file fake sick-pay claims. Shockingly, many of these outfits trace back to migrants exploiting Sweden’s trust-based system.

The “personal assistance” industry—long a playground for fraud—emerged as a prime target, filled with gangs using fake staffing and ownership schemes to siphon funds that should safeguard Swedish elders and the disabled, not finance foreign crime lords.

Social Insurance Minister Anna Tenje labeled the findings “astonishing,” declaring that “if Sweden is going to to break the gangs, it must throttle this supply of our common tax funds.”

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An MIT Student Awed Top Economists With His AI Study—Then It All Fell Apart

Aidan Toner-Rodgers, 27, sprung to the upper tiers of economics as a graduate student late last year from virtually out of nowhere.

While still taking core classes at the Massachusetts Institute of Technology, he wrote a paper on artificial intelligence’s workplace impact so rapidly influential it was cited in Congress. He appeared in the pages of The Wall Street Journal in December as the very picture of a wunderkind, in faded jeans with tousled hair, in between two of his mentors, including Nobel laureate Daron Acemoglu. Toner-Rodgers’s work offered a surprising and even hopeful revelation about our high-tech future. He concluded that AI increased worker productivity and spurred innovation. Also, people didn’t like using it very much.

Within weeks, those mentors were asking an unthinkable question: Had Toner-Rodgers made it all up?

By the spring, Toner-Rodgers was no longer enrolled at MIT. The university disavowed his paper. Questions multiplied, but one seemed more elusive than the rest: How did a baby-faced novice from small-town California dupe some of academia’s brightest minds?

“There is no world where this makes any sense,” said David Autor, one of the MIT professors who had previously championed his student’s research. MIT, Autor and Acemoglu declined to comment on​ the specifics of the investigation into the research, citing privacy constraints.

Toner-Rodgers’s illusory success seems in part thanks to the dynamics he has now upset: an academic culture at MIT where high levels of trust, integrity and rigor are all—for better or worse—assumed. He focused on AI, a field where peer-reviewed research is still in its infancy and the hunger for data is insatiable.Expand article logo  Continue reading

What has stunned his former colleagues and mentors is the sheer breadth of his apparent deception. He didn’t just tweak a few variables. It appears he invented the entire study.

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Democrat Congresswoman Sheila Cherfilus-McCormick Surrenders to Authorities After Allegedly Laundering $5 Million in FEMA Funds — Allegedly Bought 3.14-Carat Yellow Diamond Ring

A sitting Democratic member of Congress from Broward County, Sheila Cherfilus-McCormick, surrendered to federal authorities Tuesday in Miami amid explosive allegations that she orchestrated a scheme to steal and launder $5 million in FEMA COVID-19 disaster relief funds, and used a portion to bankroll her 2021 congressional campaign and purchase a luxury yellow diamond ring.

The 46-year-old Congresswoman appeared in Miami federal court in handcuffs following a 15-count federal indictment issued last week. She now faces charges including conspiracy, theft of government funds, money laundering, making and receiving straw-donor contributions, and filing false statements on her federal tax return.

According to the Department of Justice, prosecutors allege that Cherfilus-McCormick and her 51-year-old brother, Edwin Cherfilus, siphoned off $5,057,850 FEMA funds.

“The indictment alleges that the defendants conspired to steal that $5 million and routed it through multiple accounts to disguise its source. Prosecutors allege that a substantial portion of the misappropriated funds was used as candidate contributions to Cherfilus-McCormick’s 2021 congressional campaign and for the personal benefit of the defendants.

The indictment further alleges that Cherfilus-McCormick and Nadege Leblanc, 46, of Miramar, arranged additional contributions using straw donors, funneling other monies from the FEMA-funded Covid-19 contract to friends and relatives who then donated to the campaign as if using their own money.

The indictment also charges Cherfilus-McCormick and her 2021 tax preparer David K. Spencer, 41, of Davie, with conspiring to file a false federal tax return. According to the indictment, they falsely claimed political spending and other personal expenses as business deductions and inflated charitable contributions in order to reduce her tax obligations.”

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MINNESOTA MADNESS: Radical Democrat Judge Sarah West OVERTURNS Jury’s Guilty Verdict — Frees Somali Immigrant Who Stole $7.2 MILLION in Medicaid Fraud Scheme

Radical Democrat judge Sarah West, appointed by former Democrat Governor Mark Dayton, has tossed out a jury’s unanimous guilty verdict, setting free Abdifatah Yusuf, a Somali immigrant convicted of masterminding a massive Medicaid fraud ring that siphoned off $7.2 million from taxpayers.

A jury had found Yusuf guilty in August on six counts of aiding and abetting theft by swindle, following evidence that his home-healthcare company billed Medicaid for hundreds of thousands dollars in “phantom” care, padding bills for services never delivered.

Prosecutors documented that many of those funds were funneled into luxury cars, high-end clothing, and other extravagant personal purchases.

But Judge West, rather than upholding the jury’s verdict, claimed the case hinged on circumstantial evidence and offered “other reasonable inferences” for the billing irregularities, arguing prosecutors failed to prove beyond a reasonable doubt that Yusuf was personally responsible for the fraud. She issued a judgment of acquittal.

Jurors, prosecutors, and state lawmakers were stunned. One juror told reporters he believed the evidence demonstrated “obvious guilt.” The state’s Attorney General has already filed an appeal, warning the decision undermines public trust.

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Louisiana Woman Gets Over 4 Years in Federal Prison for $267K Pandemic Fraud

Reha Janee Arvie, age 35, of Westwego, LA, was sentenced for Conspiracy to Commit Mail Fraud,  Acting United States Attorney Michael M. Simpson announced. 

Court documents say that around July 2020, Arvie defrauded, and attempted to defraud various state offices of Unemployment Insurance through the submission of about 100 fraudulent UI applications. Arvie recruited friends and family, via Facebook, to file these fraudulent UI applications. 

Additionally, Arvie filed fraudulent UI applications for herself and others, in various states including Arizona, California, Colorado, Hawaii, Indiana, Missouri, Nevada, Pennsylvania, Utah, Texas, and the territory of Guam. Arvie charged those for whom she filed fraudulent UI claims fees, ranging from $1,200.00 to $1,500.00. For example, Arvie obtained $267,612.00 in UI benefits from California’s Employment Development Department. Moreover, during the investigation, Arvie lied to federal agents during an interview.

United States District Judge Sarah S. Vance sentenced Arvie to 52 months imprisonment, followed by 3 years of supervised release and payment of a $100 mandatory special assessment fee.   

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. 

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