Tag: fraud

Luxury cars and private villas: See how Minnesota fraudsters spent millions intended for hungry kids

Luxury cars, private villas and overseas wire transfers: CBS News obtained dozens of files and photos that reveal how Minnesota fraudsters blew through hundreds of millions in taxpayer dollars as part of one of the biggest COVID-era fraud schemes.

The files document a spending spree in which defendants, many of Somali descent, took taxpayer money meant to feed hungry children and used it to buy cars, property and jewelry. Videos show them popping champagne at an opulent Maldives resort. In a text message, one defendant boasts: “You are gonna be the richest 25 year old InshaAllah [God willing].”

The documents feature exhibits from a recent federal trial, many of which are being made public by CBS News for the first time. The exhibits include:

  • A confirmation email for a stay in an overwater villa with a private pool at Radisson Blu Resort Maldives
  • Lakefront property in Minnesota
  • Receipts showing wire transfers to China and East Africa
  • First class tickets to Istanbul and Amsterdam
  • A 2021 Porsche Macan
  • Stacks of cash, texted between defendants

At the sentencing of a defendant who used taxpayer funds for cars and the Maldives vacation, 24-year-old Abdimajid Mohamed Nur, U.S. District Judge Nancy E. Brasel admonished him, saying: “Where others saw a crisis and rushed to help, you saw money and rushed to steal.” He was sentenced to 10 years in prison and ordered to pay nearly $48 million in restitution for his role in the fraud scheme.

Nur is one of dozens who siphoned hundreds of millions in stolen taxpayer funds — with questions still swirling about where all the money went. The crime has drawn renewed attention in recent weeks: House Republicans last week launched a probe into Minnesota Democratic Gov. Tim Walz’s handling of the cases, and the Treasury Department said it will investigate whether money made its way to al Qaeda affiliate al Shabaab, which is based in Somalia. 

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Tim Walz Attacks President Trump After HHS Department Freezes Childcare Payments to Minnesota Amid Widespread Somali Fraud

Minnesota Governor Tim Walz attacked President Trump in his latest statement in response to allegations of rampant fraud in the Somali community.

Somali healthcare and daycare scammers may have stolen more than $9 billion in taxpayer money in Minnesota.

Walz lashed out at President Trump and accused him of letting fraudsters out of prison.

“We’ve spent years cracking down on fraud – referring cases to law enforcement, shutting down and auditing high-risk programs,” Walz said.

“Trump keeps letting fraudsters out of prison,” Walz said.

Later Tuesday, the Health and Human Services Department announced it is freezing all childcare payments to Minnesota amid allegations of widespread fraud.

“We have turned off the money spigot,” HHS Deputy Secretary Jim O’Neill said.

The HHS took three actions against the rampant fraud in Minnesota: All payments across the country will require justification and photo evidence before money is sent to a state.

All individuals in Nick Shirley’s video have been identified and audits have been demanded.

The HHS has also launched a fraud reporting hotline.

Walz lashed out at President Trump again.

“This is Trump’s long game,” Walz.

“We’ve spent years cracking down on fraudsters. It’s a serious issue – but this has been his plan all along,” Walz said.

“He’s politicizing the issue to defund programs that help Minnesotans,” Walz added.

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Walz turned ‘blind eye’ to fraud warnings in Minnesota: GOP state committee chair

Minnesota state Rep. Kristin Robbins (R) says she warned Gov. Tim Walz (D) about alleged fraud within the state’s social services programs, but to no avail.

“He has turned a blind eye for so long that he cannot deny there were so many whistleblower reports, so many media reports,” Robbins told the New York Post on Tuesday. “For them to say ‘We did not know’ is just not true.”

Robbins, chair of the Minnesota House Fraud Prevention and State Agency Oversight Policy committee, also reposted on the social platform X a letter she sent in February to Shireen Gandhi, commissioner of the state’s Department of Human Services. In the letter, Robbins detailed allegations that multiple day care facilities fraudulently billed Minnesota’s Child Care Assistance Program. 

Robbins, who is running for the GOP gubernatorial nomination to take on Walz next November, added on X that she gave Walz’s administration “a roadmap to the childcare fraud” outlined by independent journalist Nick Shirley on Friday.

Shirley’s video detailing his investigation into the growing fraud scandal renewed federal scrutiny into the matter. The Department of Homeland Security has dispatched agents to Minneapolis as part of its probe, while the Small Business Administration halted grants to the state Monday. 

Asked for comment, Walz’s office pointed The Hill to an op-ed in which he denounced that “our state’s generosity has been taken advantage of by an organized group of fraudsters who’ve put their greed and self-dealing above the needs of children, seniors and people with disabilities.”

The governor’s office also noted that he has appointed a new director of program integrity to help investigate the problem, and it pointed to reporting that Robbins had failed to communicate with state agencies over whistleblower information related to the fraud.

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SAY WHAT? Liberal Politico Reporter Suggests Somali Daycare Owners Could Justifiably Shoot People for Asking Questions

Josh Gerstein, a journalist who works at the liberal outlet Politico, tweeted something on Monday night that is raising a lot of eyebrows.

In response to the explosive report from independent journalist Nick Shirley about Somali fraud at daycare centers in Minnesota, Gerstein tweeted:

“At some point, the amateur effort to knock on doors of home daycares intersects with robust stand-your-ground laws”

Who knew that liberal journos support ‘Stand Your Ground’ laws? Of course, Minnesota, being controlled by Democrats, has no such laws, but still.

Isn’t it amazing how journalists always rush to attack the person reporting the wrongdoing in a situation like this rather than calling out, you know, the wrongdoing itself?

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Jessica Tarlov of FOX News Ends the Year on a Dumb Note About Nick Shirley’s Report on Somali Fraud in Minnesota

Jessica Tarlov, the liberal panelist on The Five on FOX News, had a predictably dumb take on Nick Shirley and his explosive video report on fraud at Somali daycare centers in Minnesota.

You all know she would have a bad take on this, didn’t you? If so, Tarlov does not disappoint.

She suggests that there is ‘no way’ that Shirley actually uncovered all the fraud that he claims in his report.

Transcript via Real Clear Politics:

JESSICA TARLOV: It’s going to get incredibly complicated for [Gov. Tim Walz] and I’m sure that he and his team are talking about whether he could mount another, you know, I don’t want to say challenge because Donald Trump won’t be running again, but obviously he’s been considering 2028.

I think that that will be more difficult when something like this has gone on in your state while you are in office, even if you’re not personally involved in it. The program that he was talking about that you reference Kellyanne’s school lunches, which I’ve seen no fraud about that, that kids go to school and they get lunch and they should. Yes, school lunch is a good thing.

Sometimes breakfast too, even. Nick Shirley’s reporting there’s no way that this kid walking around uncovered $100 million worth of fraud on his own. There have been tons of people working behind the scenes quietly, including independent local journalists that have been exposing this.

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Shocking unearthed footage shows parents pretending to drop kids off at a Minnesota day care center

Shocking unearthed video from a 2018 state fraud case shows Minnesota parents dropping their children off at a day care center and then leaving with the kids moments later — as authorities probe a rampant billion-dollar fraud scheme in Minneapolis.

In the surveillance footage, dated 2015 and obtained by Fox 9, parents are seen signing their kids into the facility so providers could bill the state for full days of care for children who didn’t actually attend.

On some days, no families would even show up at all, but the day cares would still claim reimbursements from the government, the outlet reported at the time.

The alleged phony day care centers also gave kickbacks to parents involved.

Another video obtained by Fox 9 shows a man handing an envelope to a parent with an alleged kickback payment for participating in the scheme.

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All child care payments to Minnesota are FROZEN amid daycare ‘fraud’ scandal as Tim Walz is targeted in huge crackdown

The federal government has ceased all child care payments to Minnesota amid the Democratic state’s ongoing daycare fraud scandal. 

Deputy Secretary of Health and Human Services (HHS) Jim O’Neill announced on Thursday that funding has been frozen and demanded that Governor Tim Walz audit the centers allegedly involved. 

‘We have turned off the money spigot and we are finding the fraud,’ O’Neill declared in his statement. 

The move from the Administration for Children and Families (ACF), the division of the HHS that handles child care, comes after independent journalist Nick Shirley shared footage of an apparently empty Minnesota daycare.

The facility has reportedly received millions in taxpayer funds, leading Shirley to claim that Minnesota has allowed for the ‘largest fraud in US history’ to go unchecked.

‘You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade,’ O’Neill wrote. 

O’Neill said he has activated the ‘spend defend system for all ACF payments,’ meaning that all payments going forward across the country will require proof and reasoning before the money is allocated. 

He added that he and ACF Assistant Secretary Alex Adams have identified the people involved in the scheme that Shirley allegedly unveiled. 

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Tim Walz’s Bratty Daughter Lashes Out at ‘Right-Wing Infrastructure’ for Exposing Massive Somali Fraud Scandal – Claims It’s ‘How People Get Hurt’

In a rambling video posted to social media on Monday, Hope Walz, the 24-year-old daughter of Minnesota Governor Tim Walz, has accused conservatives and the “entire right-wing infrastructure” of launching a “hate and bot campaign” against her family.

The sob story from the governor’s daughter comes amid allegations of widespread fraud in Minnesota’s Somali community programs under her father’s administration, which appear to have cost taxpayers billions.

Instead of addressing the substance of the accusations, Hope portrayed herself as a victim, whining that the exposure is “how people get hurt” and complaining about life in a “post-truth world.”

“In the name of transparency, because I think that is what people appreciate about me and my content,” Hope Walz begins. “I’ll be honest in saying that having the entire right-wing infrastructure launch a hate and bot campaign against you and your family really sucks, especially because I’m a private citizen. Like I pay my rent. I work multiple jobs.”

Hope Walz continues to describe an “extreme amount, overwhelming amount of DMs, comments, emails just peddling propaganda, pushing agendas.”

“I don’t have anything to do with anything,” she claims. “It really, really hurts. Yeah, this is how people get hurt. And I have a great support system and I’m like very confident in who I am as a person in the work that I do. But living like a post-truth world is really scary.”

She claims those who “just believe what their dear leader tells them to spin reality to fit that.”

“I’m gonna, you know, continue to do my own thing. I just felt the need to say that,” she concludes.

The video was initially posted on Hope Walz’s social media and was reposted on X by journalist Eric Daugherty.

In his caption, Daugherty wrote, “Fraud Father Tim Walz’s daughter is now FURIOUSLY accusing MAGA of stoking violence by exposing Somali fraud under Tim’s watch… Tell your dad to RESIGN so taxpayers can claw back their money. Nobody is advocating violence, only ACCOUNTABILITY.”

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Tim Walz Forced to Respond to Videos Showing Rampant Somali Fraud in Minnesota. It Was Weak Sauce.

It’s taken social media by storm, and now the Federal Bureau of Investigation is involved. YouTuber Nick Shirley did what no other mainstream outlet would: address the allegation of mass fraud against Somalis in Minnesota. If they did, it was a tepid dive into this story, most of which was geared toward defending this community. Shirley opted to visit some of the supposed childcare centers run by Somalis that are collecting millions in funds but have no children enrolled. It’s not a small operation either. Some of these daycare centers are supposed to have at least 100 kids, but they’re empty, occupied by a television, a couch, and empty space, and by Somalian men who claim the center is full.  

Now, Minnesota Gov. Tim Walz, who President Trump rightly called “seriously retarded,” was forced to respond to these allegations. He must—the Feds are involved, and we should expect raids on these locations, at least I hope so. Walz’s office claims Mr. Happy Hands cracked down hard on fraud. Yeah, you can’t say that when the state seems to be a cesspool of corruption. The state is estimated to have cheated at least $9 billion from taxpayers, thanks to Timmy letting these schemes operate seemingly with impunity.

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NY Times Editorial Board Member Has Possibly the Dumbest Take of All on Somali Fraud in Minnesota

Mara Gay of the New York Times is a special kind of stupid. Whenever she is brought on to cable news to comment on an issue, you know you’re in for a hot take.

In this case, she was on Morning Joe, offering her opinion on the Somali fraud scandal that is still unfolding in Minnesota.

She suggested that this was the result of the ‘weaponization’ of government, which doesn’t even make any sense.

Transcript via Real Clear Politics:

JONATHAN LEMIRE: And, Mara, this is a story that’s really gained a lot of traction among conservative media members, among MAGA folks online, including members of the Trump administration. Vice President JD Vance was posting about it the other day. There’s a lot we don’t know here just yet, but it does give off at least a sense—and we’ll see where the facts take us—but at least we can safely say this: it seems like Republicans are eager to be talking about something else amid a lot of the bad news surrounding the president right now.

MARA GAY, NEW YORK TIMES COLUMNIST: Right. Well, sure. These were funds that were meant to help feed hungry people during the COVID pandemic, to help keep people in their homes who were at risk of homelessness. So, first of all, if there is fraud there, that should be fully investigated—no matter where it is, whether it’s in a Democratic-led state or a Republican-led state. Absolutely, it should be investigated.

The question is, why is this a priority in a different kind of way? The politicization of the DOJ and the FBI is undeniable. So whether they are reliable narrators is the big question. This is what happens when you weaponize and politicize federal agencies that are not meant to be politicized.

I think the American people are right to ask the question: can we trust you? And that’s a sad thing to say as an American.

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