Tag: fraud

Bombshell Resurfaced Video Shows Minnesota Gov. Tim Walz Admitting He Knew About Somali Fraud Scandal But Failed to Keep Taxpayers Informed

Earlier this month, Minnesota Governor Tim Walz openly confessed that his administration should have been more transparent with taxpayers about the massive Somali-linked fraud schemes that have plagued state programs, potentially costing billions in federal funds.

The video, which has gone viral on social media in the wake of Nick Shirley’s bombshell reporting on Somali daycare centers, shows Walz admitting to knowing about the ongoing fraud during a press conference on December 12.

Standing before the American and Minnesota flags in the Capitol rotunda, Walz addressed the media about ongoing investigations into fraud in multiple state-run programs, including child nutrition initiatives like Feeding Our Future, autism services, and other social welfare programs.

In the clip, Walz states:

“I think what the president did was elevate it. Uh, I do believe and I will fully own this we should have been keeping Minnesotans more up to speed on what was happening.”

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Tim Walz Lashes Out Blaming “White Supremacy” After Massive Minnesota Somali Fraud Exposed

A viral investigation into alleged misuse of Minnesota state funds has ignited a fierce public feud between Governor Tim Walz and independent journalist Nick Shirley, culminating in a heated exchange of accusations over the weekend.

Shirley’s 42-minute video report, which garnered over 100 million views on X, purportedly showed multiple state-funded daycare centers — receiving millions in taxpayer dollars — appearing closed or inactive during business hours.

In the wake of the report’s release, Governor Walz faced intense backlash after appearing to dismiss the findings on X, writing, “This is what happens when they scapegoat and this is what happens when they no longer hide the idea of white supremacy.”

Critics immediately seized on the Governor’s comment, accusing him of using racially charged language to deflect from legitimate questions regarding the stewardship of public funds.

On Sunday, Shirley appeared on Fox News to directly address the Governor’s characterization, rejecting the “white supremacist” label as a political tactic used to silence dissent.

“If you have 100,000 people that will vote for you because you’re going to enable this stuff… and you’re going to call a white person racist for calling out facts, this is what’s going to happen,” Shirley told the host.

He further ridiculed the state’s oversight during the segment, remarking that the alleged fraud was “so obvious a kindergartner could figure it out.”

Meanwhile, Governor Walz’s office issued a formal statement responding to the allegations, asserting that his administration has “worked for years to crack down on fraud” and has already launched investigations into the specific facilities highlighted in the video.

The spokesperson emphasized that the administration has strengthened oversight mechanisms and previously closed one of the centers featured in Shirley’s report.

Despite the administration’s defense, the controversy continues to escalate, with federal authorities now signaling they are deploying additional resources to investigate the scope of the alleged fraud.

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Surveillance Footage Reveals Somali Daycare Fraud Playbook — Scheme Dates Back to 2013!

Newly resurfaced surveillance footage and investigative reporting confirm that the now-exploding Somali daycare fraud scandal in Minnesota follows a well-documented playbook that state officials were warned about as early as 2013, and repeatedly thereafter.

Yet year after year, the fraud was allowed to metastasize, draining hundreds of millions of taxpayer dollars from programs meant to help poor children, while far-left Governor Tim Walz, Attorney General Keith Ellison, and radical Rep. Ilhan Omar looked the other way.

The scandal exploded into the national spotlight this week after a viral video by YouTuber Nick Shirley went mega-viral, accusing Somali-owned daycare centers of blatant fraud.

Shirley knocked on doors, demanding answers, and what he uncovered has prompted the FBI and Department of Homeland Security to “surge” into Minnesota for a massive investigation.

Let’s rewind to 2013, when a team of Ramsey County forensic auditors uncovered the scam’s early roots. A KSTP 5 Eyewitness News report from October 2025 reveals a whistleblower from Ramsey County who, in 2013, uncovered four daycare centers exploiting CCAP, with dozens more suspicious cases totaling over $100 million in fraud.

The whistleblower alerted the Department of Human Services (DHS) and lawmakers, but nothing happened for years.

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Waste Of The Day: Austin Funds Allegedly Sent To Fake Companies

Topline: A then-employee at the City of Austin’s energy utility allegedly paid $980,000 in taxpayer funds to fictional companies with bank accounts belonging to his family members, according to a new report from the city auditor.

Key facts: Mark Ybarra was given a city credit card from 2018 to 2023 to hire repair companies for city buildings. He used it to pay 30 different vendors, but the city auditor could only verify that eight of them were real companies, according to the report. 

Ten of the companies reportedly had the same address, which the city auditor said is the home of one of Ybarra’s relatives. The businesses received $400,000 from the city. One of them had Ybarra’s email address listed as its contact information, according to the report.

The remaining $580,000 went to businesses that “appeared to be fake,” many of which were missing basic information like an address and phone number, according to the report. 

Ybarra resigned in October 2023 after Austin Energy officials asked questions about the invoices, according to the report. He was indicted for felony theft this September. 

Records obtained by Open the Books show Ybarra earned $534,797 in taxpayer-funded salary during the six years he was allegedly defrauding the city.

The city auditor claimed the alleged fraud went undetected because of Austin Energy’s “inefficient purchasing controls.” Most of his purchases were approved by former Facility Service Supervisor Sammy Ramirez, who never raised questions about the missing addresses and phone numbers on Ybarra’s invoices, according to the report.

Mark Ybarra’s wife, Ambrosia Ybarra, worked at the city’s Watershed Protection Department. She was questioned by the city auditor about her husband’s invoices but allegedly left the interview before it was over, according to the report. She resigned this November.

Ambrosia Ybarra made $70,174 in 2024. Ramirez made $87,262 in 2022, his last year of employment, but made as much as $104,698 in 2021.

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Finally! Department of Ed. Ends One Billion in Student Aid Fraud, Promises More Action

The U.S. Department of Education has reported an end to more than $1 billion in attempted student aid fraud in 2025.

These reforms were needed after the massive waste and fraud resulting from loosened rules during the Biden regime.

“Federal investigators found nearly $90 million in aid had already been fraudulently disbursed, including over $30 million to deceased individuals and more than $40 million to bots posing as students,” according to a report from Campus Reform.

That’s a lot of fraud, but it’s hardly surprising. Under Democrats, fraud and waste are rampant, as we learned in the era of DOGE.

Common sense has returned with the Trump administration.

As Education Secretary Linda McMahon put it, needing ID “to access taxpayer-funded aid is common sense.”

“From day one, the Trump administration has been committed to rooting out waste, fraud, and abuse across the federal government,” she said. “Merry Christmas, taxpayers!”

As President Trump has emphasized many times, his policies are common sense, and we are the party of common sense.

The Department of Education has also launched a website warning about AI scams posing as legitimate colleges that fool prospective students.

These AI fake sites use fake degrees and deepfake content to mislead students.

Now that we have a real president in the White House, “the Department is building a dedicated fraud detection team within Federal Student Aid to expand enforcement.”

This new unit will help protect students from these fake college scams.

While more work is needed, it’s refreshing that common sense is back, and this administration is doing a lot of work to protect students from these scams.

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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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Illegal Aliens Busted for $14 Million Gift Card Fraud

Another day, another exposé of illegal alien crime. It turns out the three men who committed $14 million gift card fraud in Texas were illegal aliens.

Kristians Petrovskis, Romunds Cubrevics, and Nurmunds Ulevicus from Latvia are accused of the fraud, per a news release last week from the Texas Financial Crimes Intelligence Center (TFCIC). But KCWX2 shed more light on the crime by stating that all three men entered America illegally and for the express purpose of committing criminal activities.

Petrovskis, Cubrevics, and Ulevicus are accused of gift card cloning, according to TFCIC, and at the time of their arrest had over 400 gift cards in their possession. Authorities say the illegals were stealing multiple cards a day from multiple stores, and have been doing so for most of this year. This was an organized and highly successful racket.

The Biden administration made it extremely easy for foreigners with ill intention to enter the United States. In fact, Democrats practically invited criminals to come to our country, and they are still trying to protect those criminals from being arrested by federal immigration officers. The Biden-Harris administration allowed at least 18,000 known or suspected terrorists into the United States, on top of many more murderers, rapists, thieves, drug traffickers, and other criminals.

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Three Honduran Nationals Sentenced in Multi-State Bank Fraud Conspiracy

Three Honduran nationals were sentenced to prison for their roles in a bank fraud conspiracy resulting in significant losses to small businesses and community banks in more than a dozen states, announced Acting United States Attorney M. Scott Proctor.

 The sentences were imposed by United States District Court Judge Philip P. Simon at hearings held on December 12 and 15, 2025.

Carlos Aquino Sosa, 26 years old, of Honduras, was sentenced to 41 months in prison followed by 1 year of supervised release after pleading guilty to two counts of conspiracy to commit bank fraud. He was also ordered to pay $533,043 in restitution.

Edwin Palacios Sosa, 27 years old, of Honduras, was sentenced to 27 months in prison followed by 1 year of supervised release after pleading guilty to two counts of conspiracy to commit bank fraud and one count of illegal re-entry. He was also ordered to pay $533,043 in restitution.

Delvin Velasquez Romero, 33 years old, of Honduras, received a time-served sentence dating back to July 8, 2024 (17 months in custody), followed by 1 year of supervised release after pleading guilty to one count of conspiracy to commit bank fraud and one count of illegal re-entry. He was also ordered to pay $233,569 in restitution.

These defendants have no legal status within the United States and will each be subject to a separate and immediate removal process upon release from prison.

According to documents in each case, on January 11, 2023, Aquino Sosa, Palacios Sosa, Velasquez Romero, and their co-conspirators used fake identification cards to cash 169 fraudulent paychecks totaling $233,569 at three branches of the same bank in the Northern District of Indiana. The fraudulent paychecks were designed to look like they had been issued by a company that operates dairy farms in the Northern District of Indiana.

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FBI Director Kash Patel Confirms Somali Fraudsters are Being Referred for Denaturalization and Deportation

FBI Director Kash Patel dropped a major bombshell on the massive Minnesota fraud scandal on Sunday, revealing that the FBI is pushing for denaturalization and deportation of many involved in the $250 million scheme that ripped off taxpayer dollars meant for hungry kids during COVID.

Patel made it clear this is “just the tip of a very large iceberg,” with investigations ramping up to expose even more corruption in federal programs.

In a lengthy statement posted to X in response to the massively viral video uncovering Somali scams by independent journalist Nick Shirley, Patel detailed the takedown of a $250 million scheme centered around the Feeding Our Future network.

This organization, which was supposed to distribute federal food aid to children in need, instead became a hub for sham vendors, shell companies, and large-scale money laundering.

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Minneapolis Daycare Scandal Reveals The Trajectory Of Blue Zone Fraud Culture

Let’s bracket a great piece of journalism with more details and some context.

By now, I assume most readers here have seen the magnificent work of the independent journalist Nick Shirley in Minnesota, showing widespread Somali fraud in government-funded programs by simply walking up to the front doors of daycare centers and healthcare organizations and inquiring about their services.

Daycare centers with millions of dollars in government funding and no children inside, and neighbors who say they’ve never seen children going in or coming out. This is a slam dunk, and I couldn’t possibly love it any more.

He names the daycare centers he visits, so you can start to find out how much the state of Minnesota knows about the scam without getting off the couch. Daycare centers are licensed and inspected: government inspectors regularly show up with a clipboard and look around. So go look at the record of inspections for Quality Learning Center of Minneapolis, the one in the video with the misspelled sign over the door. The whole thing instantly becomes darkly funny, because there’s no way anyone has ever believed that this is a functioning daycare center running at anything near its declared and funded capacity of 99 children.

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