Tag: fraud

Federal Watchdog Reveals Rampant Obamacare Fraud; 90% Of Bad-Doc Applicants Approved In Undercover Test

A new bombshell report from the Government Accountability Office (GAO) details a long-running vulnerability in the Affordable Care Act exchanges, showing that weak verification controls continue to expose federal subsidies to significant fraud and abuse. 

“Preliminary results from GAO’s ongoing covert testing suggest fraud risks in the advance premium tax credit (APTC) persist,” the report reads. “The federal Marketplace approved coverage for nearly all of GAO’s fictitious applicants in plan years 2024 and 2025, generally consistent with similar GAO testing in plan years 2014 through 2016.”

According to the report, GAO conducted undercover tests by creating fictitious applicants with fake identities and fraudulent or never-issued Social Security numbers to see how the federal Marketplace would respond. Over the past two years, 90% of those fake applicants were approved for subsidized coverage despite lacking required documentation. In plan year 2024, all four of GAO’s fabricated applicants were approved and received about $2,350 per month in subsidies paid to insurers, even though they failed to provide proof of Social Security numbers, citizenship, or income. GAO scaled up the test for 2025 to 20 fake applicants; 18 were still enrolled as of September 2025, generating more than $10,000 per month in subsidies

More broadly, GAO’s preliminary analyses identified vulnerabilities related to potential SSN misuse and likely unauthorized enrollment changes in federal Marketplace data for plan years 2023 and 2024. Such issues can contribute to APTC that is not reconciled through enrollees’ tax filings to determine the amount of premium tax credit for which enrollees were ultimately eligible. GAO’s preliminary analysis of data from tax year 2023 could not identify evidence of reconciliation for over $21 billion in APTC for enrollees who provided SSNs to the federal Marketplace for plan year 2023. Unreconciled APTC may not necessarily represent overpayments, as enrollees who did not reconcile may have been eligible for the subsidy. However, it may include overpayments for enrollees who were not eligible for APTC.

A big problem with reconciling these Obamacare subsidies is when someone uses a Social Security number that doesn’t actually belong to the person getting the insurance. GAO’s early look at federal Marketplace data found more than 29,000 Social Security numbers in 2023 that showed over a full year of subsidized coverage. One number was used so many times that it totaled more than 26,000 days of insurance across more than 125 plans – the equivalent of more than 71 years of coverage tied to a single number.

The pattern continued in 2024, with nearly 66,000 Social Security numbers being linked to more than a year of subsidized coverage. This can result from identity theft, fake identities, or simple typing errors. According to the GAO, determining the true owner of a Social Security number can be complicated, so it’s examining these cases and other examples of overlapping coverage more closely.

CMS officials say the federal Marketplace lets people sign up even when a Social Security number is already in use. They claim this helps the real owner of the number get coverage in cases of identity theft or simple typing mistakes. The system uses a model that analyzes various pieces of personal information to distinguish applicants, and CMS runs this check monthly to clear out duplicate accounts. They also say applications with repeated Social Security numbers are supposed to go through a data-matching process in which people send in documents to verify their identities. However, even with those explanations, the setup makes it far too easy for fake applicants to slip through, and clearly, they do. The way the system works gives fraudsters plenty of room to abuse Social Security numbers long before anyone notices.

GAO notes that its “covert testing is illustrative and cannot be generalized to the enrollee population.”

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Two-Tier Justice on Full Display: Virginia Grand Jury Refuses to Re-Indict Letitia James

On December 4, 2025, a federal grand jury in Virginia declined to indict Letitia James a second time in her mortgage-fraud case.

This marks the second time prosecutors have failed to move charges against her forward in recent weeks.

James celebrated on Twitter/X with staggering hypocrisy, declaring “As I’ve said from the start, these charges are baseless. It’s time for the weaponization of our justice system to stop.”

The case dates back to an October 9, 2025 indictment, which charged James with bank fraud and making false statements to a financial institution.

Prosecutors alleged that when she purchased a home in Norfolk, Virginia, in 2020, she misrepresented the property’s status, claiming it would be a “second home” rather than a rental, thereby qualifying for more favorable mortgage terms she was not entitled to.

However, on November 24, 2025, a Clinton-appointed federal judge, Cameron McGowan Currie, dismissed the indictment.

She claimed that the interim U.S. attorney who brought the charges, Lindsey Halligan, was found to have been unlawfully appointed and thus lacked authority to prosecute.

Undeterred, the Justice Department re-presented the case to a new grand jury just 10 days later. But the second grand jury declined to indict.

Sources familiar with the proceedings told reporters that while this constitutes a setback for prosecutors, the door is not shut, that another grand jury or a different prosecutorial strategy remains possible.

This sequence underscores the difficulty in prosecuting Democrat officials for wrongdoing.

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Trump Admin To Stop Food Stamp Payments To Democrat States Covering Up Welfare Fraud

he Trump administration announced that it will soon stop food stamp funding to 21 Democrat-led states and Washington, D.C., because they refuse to provide data about recipients, choosing instead to run cover for illegals and massive welfare fraud.

Agriculture Secretary Brooke Rollins said in a Tuesday cabinet meeting that 28 states and Guam, run by Republicans, have provided data like names and immigration statuses for Supplemental Nutrition Assistance Program (SNAP) recipients, but that the remaining Democrat-run states are refusing to comply.

“So as of next week, we have begun and will begin to stop moving federal funds into those states, until they comply and they tell us and allow us to partner with them to root out this fraud and to protect the American taxpayer,” Rollins said at the White House.

Over 20 million SNAP recipients live in the Democrat-run states, nearly half of all 42 million recipients — a enormous number that should make anyone suspicious of the program.

The data was requested earlier this year, but the Democrat states filed a lawsuit claiming the data request violated privacy laws, essentially arguing that the government and taxpayers are not allowed to ensure accountability by tracking people who use the program.

The lawsuit is really a ploy to keep illegal immigrants in the country and on public welfare. As the lawsuit points out, the data could be used to inform better immigration enforcement. While the Trump administration maintains that the data will be used to clean up waste, fraud, and abuse, it should absolutely use the data to help deportation enforcement as well.

SNAP, much like other welfare programs, is notorious for fraud and abuse and often allows people who do not really need food assistance to game the system, not to mention the fact that the program allows recipients to purchase massive amounts of junk food that are clearly not “nutrition” as the program implies.

What’s worse is that 59 percent of illegal immigrant households use at least one welfare program, and 52 percent of legal immigrant households do the same. Native-born households account for 39 percent.

Food assistance like SNAP is one of the biggest categories of welfare for immigrants.

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What Rep. Ilhan Omar Likely Knew of the $1 Billion Welfare Fraud in Minnesota

The massive $1 billion in welfare fraud in Minnesota is causing many to ask what Democrat Representative Ilhan Omar knew and when she knew it about the fraud committed right under her nose by the Somali community in Minnesota.

Reports say that Omar has many close ties to organizations, businesses, and individuals named in the various cases that have uncovered massive fraud of Minnesota’s overly generous welfare schemes, cases that total up to more than a billion dollars in stolen taxpayer money.

For example, Omar has held events and parties at the Minneapolis eatery named Safari Restaurant, an establishment that has been named in some of the investigations looking into the fraud. The owners of this restaurant, Salim Said and Aimee Bock, have already been convicted in the Feeding Our Future case that defrauded $250 million from the state in child food aid.

Omar was reportedly very close to these business owners. The congresswoman held her 2018 congressional victory party at the restaurant with the full participation of its owners and introduced the bill that led to the fraud that enriched them, yet Omar has claimed to know nothing about any of it, Chadwick Moore reported for the New York Post.

Said was found guilty in August of ripping off the state for $12 million in funds that were supposed to be earmarked to feed needy children. The money was stolen from the 2020 MEALS Act, which Omar introduced and saw passed with bipartisan support.

Indeed, Omar was seen on a video recorded in that very restaurant as she touted the program.

That isn’t all. One of Omar’s own campaign officials has also pleaded guilty in one of these cases.

Omar campaign official Guhaad Hashi Said, who is also a Democrat activist, pleaded guilty to running a fake food aid organization called Advance Youth Athletic Development. He claimed to have helped feed 5,000 children with the organization and pulled in $3.2 million in fraudulently awarded funding.

Said worked for Omar from 2018 to 2020 and one of his duties was to turn out the vote in the Somali community. He was a constant presence around Omar throughout that time.

Omar also received donations from several of those involved in these cases. In 2022, she returned $7,400 in direct donations from these convicted fraudsters.

Yet, she maintains she knew nothing, saw nothing, and had no part in the fraud.

Indeed, Omar recently sponsored an op ed in the New York Times published under her name and insisting that Trump’s focus on the massive theft of tax dollars by Minnesota’s Somali community is just “bigotry.”

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ICE “Strike Teams” Deployed To Minneapolis After Bombshell Somali Welfare-Fraud Report Linked To Overseas Terror

Investigative journalist Christopher Rufo, whose City Journal expose revealed how Minnesota’s Somali community stole billions in taxpayer funds, with money ultimately flowing to a foreign terrorist network, notes that just weeks after his bombshell report, ICE has now mobilized in Minneapolis.

“How it started   …   How it’s going,” Rufo wrote on X on Tuesday evening. 

Rufo cited a report from the New York Times that said the Trump administration launched a massive ICE enforcement operation in the Minneapolis and St. Paul area, set to target hundreds of illegal alien Somalis. 

According to an official with knowledge of the deportation operation and documents obtained by the NYT, about 100 federal agents have been deployed to the Minneapolis-St. Paul region as part of a new “strike team” to deport Somali illegal aliens who are a net drain on public resources.

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Hundreds of Minnesota Gov’t Staffers Say Gov. Tim Walz Hid Somali Fraud and ‘Attacked Whistleblowers’

Nearly 500 employees in Minnesota’s state government say Democrat Governor Tim Walz ignored their constant warnings about massive fraud by Somalis of the state’s aid programs.

The staffers in the state’s Department of Health Services also say that Walz retaliated against them for exposing the corruption in the state’s Somali community.

The group of state employees have been operating an X account for several years where they have warned the public of the cases of fraud and theft they are finding in the aid program. In years past they warned the former Democrat vice presidential nominee and the citizens of Minnesota of the widespread issues they have uncovered. But in a new post, the group is saying that not only has Walz ignored their warnings, he has punished them for raising the alarm.

“Tim Walz is 100% responsible for massive fraud in Minnesota,” the group said in a November 29 post referencing a New York Times article on the crimes. “We let Tim Walz know of fraud early on, hoping for a partnership in stopping fraud, but no, we got the opposite response.”

They added, “Tim Walz systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports. Instead of partnership, we got the full weight of retaliation by Tim Walz, certain DFL members, and an indifferent mainstream media. It’s scary, isolating, and left us wondering who we can turn to.”

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NY Times Admits Somalis Are ‘Raised in a Culture of Stealing’ Following Massive Welfare Fraud in Minnesota

Even the far-left New York Times has admitted that Somalians are raised in a culture of widespread theft and graft in their country as the news of massive welfare fraud among the Somali community in Democrat Gov. Tim Walz’s Minnesota grows.

The paper’s opening line for its Nov. 29 article gets straight to the point, reading, “The fraud scandal that rattled Minnesota was staggering in its scale and brazenness.”

There have been an astounding series of cases of hundreds of millions of dollars in fraud in state welfare, housing, healthcare, food, COVID relief and other programs, much of it centered on members of the Somali community.

The fraud has been so endemic in Minnesota that even the usually far-left Times is joining Breitbart News and calling it out. Indeed, the paper even noted that early on many liberals waved off the fraud as a “one-off abuse,” but as each new case rolled out from federal prosecutors the sense of alarm has grown and the blame is undeniable.

“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,” the Times reported.

The paper does not spare exposure of the Somali community.

Macalester College professor Ahmed Samatar, a Somali native, said that the fraud among Minnesota’s Somali migrants should not be surprising. The Times added that “Somali refugees who came to the United States after their country’s civil war were raised in a culture in which stealing from the country’s dysfunctional and corrupt government was widespread.”

The fraud has been so deep that it has undermined all of the state’s welfare programs.

“No one will support these programs if they continue to be riddled with fraud,” federal prosecutor Joseph H. Thompson told the media. “We’re losing our way of life in Minnesota in a very real way.”

One of the first such cases centered around an organization called “Feeding Our Future,” run by a group of Minneapolis-area Somali migrants. Prosecutors say that the organizers bilked $250 million from the state in child food assistance funding.

In a different case, tens of millions were stolen from Minnesota’s autism treatment program, again by Somali migrants. There is also the case of more than $550 million stolen from the state’s coronavirus pandemic relief program.

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ICYMI: MN AG Keith Ellison CAUGHT ON TAPE Promising Favors to Somali Immigrant Fraudsters — Including Now-Convicted Defendants — In Exchange for Campaign Cash

A 54-minute secret recording from a December 11, 2021, closed-door meeting inside Minnesota Attorney General Keith Ellison’s official state office is resurfacing amid explosive revelations that 70 Somali community members in Minnesota participated in stealing $250 million in federal COVID child-feeding funds.

On the tape released by American Experiment earlier this year, Ellison sympathizes with, encourages, and ultimately promises assistance to a group of Somali-American business leaders, many of whom would later be charged or convicted in the largest COVID relief fraud scheme in U.S. history.

The fraudulent operation, centered around the notorious nonprofit Feeding Our Future, stole an estimated $250 million in federal child nutrition funds, money intended to feed poor children but instead used to purchase luxury homes, foreign real estate, jewelry, and lavish lifestyles.

The audio reveals Ellison mocking state agency oversight, vowing to “fight” on behalf of the very operators who investigators say were deeply involved in a web of wire fraud, money laundering, and fake meal claims across Minnesota.

Soon after (on December 20, 2021), Keith Ellison’s campaign and that of his son Jeremiah Ellison received campaign donations from individuals linked to Feeding Our Future.

Among those donors was Gandi Yusuf Mohamed, a person publicly identified as tied to laundering over $1.1 M in program funds.

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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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