Tag: fraud

FBI Raids Somali-Owned ‘Health Services’ Business in Minnesota as Medicaid Fraud Exceeds $9 Billion

The FBI on Thursday raided a Somali-owned ‘health services’ business in Bloomington, Minnesota, after the Health and Human Services Department flagged it for fraud.

FBI agents were spotted carrying boxes out of Somali-owned Ultimate Home Health Services.

Fox 9 reported:

FBI agents raided the offices of a Bloomington business on Thursday, days after the State of Minnesota suspended a business license at that address citing fraud.

A FOX 9 crew witnessed FBI agents and other federal investigators carrying boxes from a business in a plaza off 17th Avenue South near Old Shakopee Road East. The business is located in a suite next to a pizza shop, an Asian market, and a laundry mat.

Inside the building, there was damage to a door belonging to Ultimate Home Health Services which appeared to have been forced open.

A letter dated Dec. 5 shows the Department of Human Services had suspended the license for Ultimate Home Health Services, a home and community-based service, citing the risk of fraud.

“This immediate suspension is based on a determination that persons served by your program are at an imminent risk of harm and because the holder and controlling individual are the subjects of a pending administrative action related to fraud against the program which is administered by a state agency,” the letter states.

The letter goes on to say that the state determined clients for the business were not required services, a client who died hadn’t been reported, and staff had provided false information to DHS licensors. The letter also states that the license holder is already facing administrative action for fraud against the program.

Assistant US Attorney Joe Thompson on Thursday said the Somali fraud may have ballooned to $18 billion.

“The fraud is not small. It isn’t isolated. The magnitude cannot be overstated,” Thompson said.

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Trump HUD Hunts Down Fraud in Colorado: 221 Dead People Were Getting Housing

Ready for another exciting episode of “Rampant Welfare Fraud Costs the Taxpayers Billions?” Well, here we are; this time it’s Colorado, and the fraud has to do with housing assistance from the Department of Housing and Urban Development (HUD). Investigators have uncovered 221 people receiving federal housing assistance who have no business receiving it, unless one can consider a coffin or an urn “housing.” 

That’s right. 221 dead people, out of almost 3,000 people in Colorado who were improperly receiving benefits from HUD.

The Department of Housing and Urban Development (HUD) is investigating whether Colorado providers helped nearly 3,000 people swindle taxpayer money from Uncle Sam, The Post has learned.

The investigation comes after an internal HUD audit found that benefits were granted to 221 dead people, while another 87 were otherwise ineligible.

The department also said that another 2,519 beneficiaries will need to undergo additional verification.

Here’s the question: Were these just mistakes, the results of bad record-keeping, or deliberate fraud? Not that either is exactly a comfortable finding; when the answer is either criminality or gross incompetence, the taxpayers take a bath either way. And HUD is calling this apparent fraud.

“From deceased tenants to individuals receiving HUD housing benefits who were never supposed to, the Department has questions for HUD-supported housing providers in Colorado, and we expect prompt answers and enforcement action,” a HUD spokesperson told The Post.

The apparent fraud took place in most of the Rocky Mountain State’s 59 public housing agencies (PHAs) and was particularly pronounced in the Denver Housing Authority, a source said.

HUD officials are set to demand PHAs perform additional verification of beneficiaries and remove both deceased tenants and ineligible beneficiaries from their rolls.

And what else is going to happen?

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“Fraud tourists” traveled to Minnesota after a friend told them state programs were “a good opportunity to make money,” prosecutors say

Federal prosecutors announced new indictments Thursday in the widening Minnesota fraud scandal, this time involving two Philadelphia-based men accused of traveling to Minneapolis after a friend told them the taxpayer-funded programs there presented “a good opportunity to make money.”

Anthony Waddell Jefferson and Lester Brown are accused of siphoning millions from federally funded programs administered by Minnesota officials that were meant to help people with disabilities and those suffering from addiction.

Unlike many of the individuals previously caught up in the state’s sprawling fraud scandal, they don’t appear to have ties to Minnesota’s large Somali-American community. Prosecutors say they don’t appear to have ties to Minnesota at all.

“Minnesota has become a magnet for fraud, so much so that we have developed a fraud tourism industry — people coming to our state purely to exploit and defraud its programs,” said Assistant U.S. Attorney Joseph Thompson, who brought the new charges. “This is a deeply unsettling reality that all Minnesotans should understand.”

Court filings allege the men submitted up to $3.5 million in “fake and inflated bills” for Medicaid reimbursements after they set up a company intended to provide housing and other services to individuals who qualified for the program. They allegedly fleeced the housing program in Minnesota despite “living on the other side of the country and having no network in or connections to Minnesota or its communities.” 

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Haitians Allegedly Bilked Taxpayers Out Of Millions In SNAP Scam

United States Attorney Leah Foley of the District of Massachusetts announced Wednesday that two Haitian immigrants to the United States were facing food stamp fraud charges.

Antonio Bonheur, 74, of Mattapan, and Saul Alisme, 21, of Hyde Park, were each indicted on a single count of food stamp fraud over a scheme that bilked over $7 million in benefits from two bodegas in the Boston area, according to a Department of Justice (DOJ) release. Foley described how the bodega owners ripped off taxpayers during a press conference.

“These defendants exchanged SNAP benefits for cash, which they pocketed. Bohneur, a naturalized U.S. citizen from Haiti, owned the Jesula Variety Store. Alisme, a lawful permanent resident also from Haiti, owned the Saul Mache Mixe Store,” Foley told reporters. “These two businesses were co-located within a single storefront in Boston. To be certain, these were not supermarkets. They were not full-service groceries. It would be a huge stretch to even call them convenience stores.”

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Meta Chose Revenue Over Policing Chinese Scam Ads, Documents Show

Meta knowingly tolerated large volumes of fraudulent advertising from China to protect billions of dollars in revenue, a new investigation from Reuters unveiled this week. Internal documents show executives prioritized minimizing “revenue impact” over fully cracking down on scams, illegal gambling, pornography and other banned ads.

Although Meta platforms are blocked inside China, Chinese companies are allowed to advertise to users abroad, according to Reuters. That business grew rapidly, reaching more than $18 billion in revenue in 2024—about 11% of Meta’s global sales. Internal estimates showed roughly 19% of that revenue, more than $3 billion, came from prohibited or fraudulent ads.

Meta documents reviewed by Reuters describe China as the company’s top “Scam Exporting Nation,” responsible for roughly a quarter of scam ads worldwide. Victims ranged from U.S. and Canadian investors to consumers in Taiwan. An internal presentation warned, “We need to make significant investment to reduce growing harm.”

In 2024, Meta briefly did just that. A dedicated China-focused anti-fraud team cut problematic ads roughly in half, from 19% to 9% of China-related revenue. But after what one document described as an “Integrity Strategy pivot and follow-up from Zuck,” the team was asked to pause its work. Meta later disbanded the unit, lifted restrictions on new Chinese ad agencies, and shelved additional anti-scam measures.

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Ed Department: Nearly 2,000 Minnesota ‘Ghost Students’ Fraudulently Received $12.5 Million

In Minnesota, home to the largest population of Somali immigrants in the U.S. and the site of numerous fraud investigations, fraudsters received $12.5 million in student loan and education grant money, according to a letter Education Secretary Linda McMahon sent to Minnesota Gov. Tim Walz.

The letter calls on Walz to resign, and states that a new fraud prevention system at the department has found over $1 billion in “attempted financial aid theft,” including by international fraud rings and artificial intelligence (AI) bots.

“[Y]our careless lack of oversight and abuse of the welfare system has attracted fraudsters from around the world, especially from Somalia, to establish a beachhead of criminality in our country,” McMahon wrote. “As President Trump put it, you have turned Minnesota into a ‘fraudulent hub of money laundering activity.’”

“At the beginning of this year, the U.S. Department of Education became aware that fraudulent college applicants, especially concentrated in Minnesota, were gaming the federal postsecondary education system to collect money that was intended for young Americans to help them afford college,” she said.

McMahon referred to the fraudsters as “‘ghost students’ because they were not ID-verified and often did not live in the United States, or they simply did not exist,” and noted that, “[i]n Minnesota, 1,834 ghost students were found to have received 12.5 million in taxpayer-funded grants and loans.”

They “collected checks from the federal government, shared a small portion of the money with the college, and pocketed the rest–without attending the college at all,” according to the letter.

The letter comes after Somalis in Minnesota, in particular, have been exposed as having massively defrauded American taxpayers. They have even reportedly funded terrorists back in their country.

The news surrounding Somali fraud includes allegations of multiple scams, including claims that an autism “provider” enrolled Somali children who did not have an autism diagnosis in a welfare fraud scheme.

The outrage, among many other cultural problems with Somalis, has resulted in President Donald Trump intending to cancel some Somalis’ temporary protected status.

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How fears of being labeled ‘racist’ helped ‘provide cover’ for the exploding Minnesota fraud scandal

In the aftermath of the massive Feeding Our Future scandal and broader allegations of systemic fraud in Minnesota’s social programs, a troubling theme has emerged: accusations of racism repeatedly used to deflect scrutiny, intimidate investigators and stall accountability. 

Rumors and reports of fraud in Minneapolis, primarily within the city’s exploding Somali community, have been circulating for at least a decade, but criticism of the fraud has been largely dismissed by elected Democrats as “racist” or being underpinned by animosity toward foreigners. News stories focused on Somali fraudsters in recent years were shot down as “racist.”

“The whole story kind of died under these accusations that people were being racist,” Bill Glahn, policy fellow with Center of the American Experiment, told Fox News Digital. “Oh, maybe somebody stole a little bit here, a little bit there, but there’s nothing systemic going on.”

Former assistant U.S. Attorney Joe Teirab, who helped take on federal prosecutions in the Feeding Our Future case, described to Fox News Digital how individuals implicated in fraud leaned on racial accusations as a shield. According to Teirab, suspects explicitly invoked race during a secretly recorded meeting with Attorney General Keith Ellison, asserting that investigators were targeting them “only because of race.”

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Senator John Kennedy Reads Damning Memo That Explains Why Minnesota Democrats Kept the Fraud Quiet for so Long

As the massive fraud scandal in Minnesota continues to unfold, people are wondering how it was allowed to happen. How did these people get away with such huge financial crimes?

Senator John Kennedy of Louisiana might have an answer for that.

He recently read part of a memo that came from the Attorney General’s office in Minnesota. It makes the situation pretty clear.

This is from Wall Street Apes on Twitter/X, emphasis is ours:

Senator John Kennedy reads an internal memo from the Minnesota Attorney General’s office

They openly say they did not stop the Somalia immigrant fraud because Democrats would lose votes

“Here’s what a fraud investigator in the Attorney General’s office said. She said, There is a perception that I’m quoting now, that forcefully tackling this issue would cause political backlash from the Somali community, which is a core voting block for Democrats”

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Minnesota Gets New Fraud Czar Amid Somali Welfare Scandal

Minnesota Gov. Tim Walz on Friday named Tim O’Malley the state’s director of program integrity, tapping the judge and former superintendent of the Bureau of Criminal Apprehension to root out fraud in government.

O’Malley, who also worked as an FBI agent and spearheaded reforms in the Archdiocese of St. Paul and Minneapolis, will be involved across agencies to oversee that taxpayer funds are not misappropriated.

Walz also announced a partnership with WayPoint Inc., a Minnesota firm made up of former law enforcement and federal agents focused on forensic accounting and investigations.  They will develop a comprehensive fraud-prevention strategy for the state.

Walz said he was proud O’Malley would be working to protect Minnesota taxpayers from fraud in government programs.

“Today we are building on the work of the last several years and strengthening Minnesota’s defenses against fraud,” Walz said.

“If you commit fraud in Minnesota, you will be caught and prosecuted to the fullest extent of the law.”

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In echoes of Minneapolis, whistleblower says Maine company bilked Medicaid dollars

Ahealth services contractor in Maine founded by a Somali immigrant is now accused by a whistleblower of defrauding the state’s Medicaid program, raising concerns in Congress that fraud in government programs is more widespread than previously known.

The recent charges from last month connected to a $1 billion fraud ring among Somali immigrants in Minneapolis, Minnesota, have focused renewed attention from lawmakers on rooting out fraud in federally-funded programs across the country. 

Just days after the Minnesota fraud ring surfaced in the national conversation, a whistleblower who worked for a health services contractor in Maine came forward in a public interview and alleged the company, Gateway Community Services, defrauded the state’s Medicaid program for years. 

The company was founded by Abdullahi Ali, a Somali-American who also ran for office, a position equivalent to governor, in a Somali state. At the time, he was serving as Gateway’s executive director. 

Rep. James Comer, R-Ky., Chairman of the House Oversight Committee, says that he plans to probe the cases in both Minnesota and Maine to determine whether similar fraud using public dollars exists elsewhere. He believes there is a high chance his committee will find more.  

“This does appear that it’s a very organized scheme in multiple states with groups of Somalis,” Comer said in an interview with NewsNation, which first aired the whistleblower’s allegations. “I would go out on a limb and say this is happening in other states with other social programs with other groups,” Comer said.

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