SBA HALTS $5.5 MILLION in Funding to Minnesota After Explosive Findings Tie Somali Fraud Ring to Millions in PPP Loans

The Small Business Administration (SBA) has halted more than $5.5 million in annual federal funding to Minnesota after explosive findings revealed that individuals tied to the infamous $1 billion Somali fraud scheme also received millions in taxpayer-backed Paycheck Protection Program (PPP) loans.

SBA Administrator Kelly Loeffler announced the funding freeze Tuesday in a scathing post on X, directly notifying Democrat Governor Tim Walz that his state can no longer be trusted with federal tax dollars.

Loeffler wrote on X:

Today, I informed Governor Tim Walz that SBA is halting $5.5 million in annual funding to Minnesota pending further review.

This action follows alarming findings: individuals indicted in the $1 billion Somali fraud scheme also received at least $3 million in PPP loans, and SBA has since identified 13,600 additional PPP loans in Minnesota – totaling $430 million – suspected as fraudulent.

With dozens of investigations underway, the conclusion is unavoidable: Minnesota cannot be trusted to administer federal tax dollars. Its socialist welfare system has enabled fraud at industrial scale, at the expense of honest Americans – and these are the consequences.

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Minnesota AG Faults Carmakers For Thefts Instead Of Criminals

Minnesota Attorney General Keith Ellison came under fire for blaming two car manufacturers for a surge in vehicle thefts across the state, with critics arguing the problem stemmed from lenient, soft-on-crime policies instead. 

The backlash followed Ellison’s framing of a multi-state settlement, in which he claimed Minnesota faced a “crisis,” describing it as a “public safety epidemic of vehicle thefts, financial harm to consumers, injury and tragically, even deaths.” 

On X, critics mocked Ellison’s remarks, particularly given his reputation as a soft-on-crime prosecutor and his alleged failure to crack down on one of the largest COVID-19 relief fraud schemes to date. 

“Minnesota AG Ellison blames car theft in his state on Kia and Hyundai being too easy to steal…” the X account End Wokeness wrote while sharing a clip of Ellison’s comments, which garnered nearly half a million views. 

National Review senior writer Dan McLaughlin responded, “My favorite anti-theft device is jail.” 

Rep. Mike Collins, R-Ga., added bluntly, “I’d blame the criminals.” 

National syndicated radio host Anthony Cumia echoed these sentiments, writing, “They will never take responsibility for their shit behavior.” 

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Minneapolis Public Schools SUED by Trump DOJ Over Blatant ANTI-WHITE Discrimination — Teachers of Color Shielded From Layoffs, Black Men Teachers Given Special Privileges

The Department of Justice has launched a major civil rights lawsuit against Minneapolis Public Schools (MPS), accusing the district of engaging in open, systemic discrimination against teachers based on race and sex.

According to the federal complaint filed, the DOJ alleges that Minneapolis Public Schools and its school board adopted a collective bargaining agreement (CBA) that explicitly shielded “teachers of color” from layoffs, while forcing white and non-preferred teachers to be fired, reassigned, or skipped over, regardless of seniority or qualifications.

The same race-based rules apply when teachers are reinstated. Under the contract, teachers of color are rehired first, even if white teachers were laid off earlier and have more experience.

According to the complaint:

“The United States brings this action to stop the Board of Directors of Special School District No. 1, Minneapolis Public Schools (Board), Special School District No. 1, the Minneapolis Public Schools (MPS), and MPS Superintendent Lisa Sayles-Adams (collectively, Defendants) from discriminating against teachers based on their race, color, sex, and national origin in violation of federal law.

Since at least July 1, 2021, Defendants have contracted with a teacher’s union to provide black teachers, teachers of color, and “underrepresented” teachers preferential treatment in employment decisions—such as involuntary reassignments, layoffs, and reinstatements—based on their race, color, sex, and national origin. This preferential treatment is plainly discriminatory and unlawful.”

The lawsuit also highlights a separate and even more explicit discrimination scheme involving an organization called “Black Men Teach.”

Under a special memorandum of agreement embedded in the contract, Black male teachers receive exclusive benefits unavailable to women or non-Black teachers, including:

  • Protection from layoffs and reassignment
  • Priority hiring at certain schools
  • Five additional paid days off per year for training and professional development

Only Black men are eligible for the program, meaning white teachers, Asian teachers, Hispanic teachers, and women of any race are automatically excluded.

Federal lawyers argue this amounts to open race- and sex-based discrimination, flatly prohibited by civil rights law.

“Discrimination is unacceptable in all forms, especially when it comes to hiring decisions,” said Attorney General Pamela Bondi.

“Our public education system in Minnesota and across the country must be a bastion of merit and equal opportunity — not DEI.”

“Employers may not provide more favorable terms and conditions of employment based on an employee’s race and sex,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division.

“The Department of Justice will vigorously pursue employers who deny their employees equal opportunities and benefits by classifying and limiting them based on their race, color, national origin, or sex.”

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House Oversight Chair James Comer DESTROYS “Dollar Store Obama” Hakeem Jeffries After “Malignant Clown” Attack in Defense of Tim Walz and Somali Fraudsters

House Oversight Committee Chairman James Comer (R-KY) came out swinging on House Minority Leader Hakeem Jeffries (D-NY) in response to a recent press conference where Jeffries called him “a joke, an embarrassment, an unserious individual, and a malignant clown.”

This comes after the House Oversight Committee launched an investigation earlier this month into the widespread welfare and social services fraud perpetrated by Somali aliens, who stole billions of dollars from the state and federal government.

“The Committee on Oversight and Government Reform is investigating reports of widespread fraud in Minnesota’s social services programs. The Committee has serious concerns about how you as the Governor, and the Democrat-controlled administration, allowed millions of dollars to be stolen. The Committee also has concerns that you and your administration were fully aware of this fraud and chose not to act for fear of political retaliation,” James Comer wrote in a letter to Minnesota Governor Tim Walz and Attorney General Keith Ellison.

“The Committee therefore requests documents and communications showing what your administration knew about this fraud and whether you took action to limit or halt the investigation into this widespread fraud.”

Additionally, as The Gateway Pundit reported, Treasury Secretary Scott Bessent has launched his own investigation into the money trail and potential ties to terrorism.

On Thursday, a reporter asked Jeffries if he thinks Walz and Ellison should cooperate with the Committee’s investigation and whether or not he’s worried about the billions of stolen tax dollars in Minnesota.

But instead of even addressing the question, Jeffries went on a baseless attack against Comer and sounded like a bigger retard than Minnesota Governor Tim Walz.

“James Comer is a joke, an embarrassment, an unserious individual, and a malignant clown,” Jeffries said before overconfidently pointing to another reporter.

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Media ‘complicity’ blamed as feds say Minnesota fraud crisis could reach $9B: ‘Shown their true colors’

Minnesota’s sprawling fraud crisis has garnered national headlines in recent weeks, but several critics say the problem festered for years, aided by local media that appeared uninterested in holding people in power accountable. 

“In newsrooms, they’re told, ‘We can’t run that because we’re going to be accused of being racist,’” Townhall columnist Dustin Grage recently told Fox News Digital about news outlets in Minnesota essentially enabling the fraud by not calling out shocking taxpayer waste occurring primarily within the local Somali community.

The outlet that is considered by many the top news source in the region, the Minnesota Star Tribune, has faced criticism on social media in recent days over some of its headlines, including “Minnesota Somali community grapples with fraud cases while pushing back against stereotypes” on Nov. 26 and “Trump claims Minnesota lost billions to fraud. The evidence to date isn’t close” on Dec. 11. 

On Thursday, federal prosecutors held a press conference where they revealed that the true scope of the fraud scandal could end up costing taxpayers around $9 billion, prompting some conservatives on social media to point out the Dec. 11 headline.

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Education Secretary Demands Tim Walz Resigns – Somalian Crime Ring Expands

Fraudsters found every angle to syphon money away from taxpayers under Tim Walz’s failed leadership. Education Secretary Linda McMahon is now urging Walz to resign after it emerged that criminals in Minnesota stole over $12 million from the US Department of Education.

“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,” wrote McMahon.

These bad actors used the same ploy to extort money through programs intended to feed poor children and filed applications on behalf of “ghost students” who never existed. These individuals did not need to verify their ID. Some applicants did not even live in the United States if they existed at all. There were 1,834 approved “ghost students” in Minnesota who received a total of $12.5 million in grants and loans.

A teacher at Century College in Minnesota revealed that 15% of his students were “basically an organized crime ring.” Minnesota State College Southeast experienced a spike in new applicants driven by 84 ghost students, who were primarily Somalian. Some of these students enroll in online courses and attend class for the 10 required days to receive financial aid.

“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,” said McMahon. “Our new fraud prevention system has now blocked more than $1 billion in attempted financial aid theft by fraudsters, including coordinated international fraud rings and AI bots pretending to be students.”

Somalian crime organizations have found methods to steal from taxpayers through programs for education, food stamps, COVID, small businesses, childhood disability assistance, and elderly care. The welfare state has become their personal piggy bank. What has Walz done to curtail crime? Absolutely nothing. Over $1 billion has gone missing under Walz, which is far too high to be considered a mere oversight.

Walz plans to seek a third term in 2026, as Minnesota has no term limits for governors. He says that he will take accountability but has not taken any steps to curtail fraud. He refuses to accept that these crime rings are connected to Somalian crime organizations. Walz has every intention of expanding the unregulated welfare state and will not hesitate to raise taxes on the very people these programs are designed to assist.

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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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Lawsuit Filed After Minnesota Officials Allegedly Weaponized Zoning Laws Against Free Camping Program for Disabled Veterans

A bombshell federal civil rights lawsuit filed in Minnesota accuses St. Louis County officials of waging a years-long, politically motivated campaign to shut down a nonprofit that provides free primitive camping and outdoor therapy to disabled veterans.

The 121-page complaint, filed in U.S. District Court, alleges systemic corruption, disability discrimination, abuse of power, and constitutional violations by county commissioners, planning officials, attorneys, and township leaders who, according to the lawsuit, colluded to block a veteran-focused nonprofit because they simply did not want those veterans on the land.

At the center of the case is Rough-N-It Inc., a nonprofit founded to provide free, non-commercial camping for disabled veterans, many of whom cannot afford resort fees and rely on outdoor therapy as part of their recovery.

According to the lawsuit, county staff repeatedly claimed the project offered “no public benefit,” even after being explicitly informed multiple times that the sole purpose of the land use was to serve disabled veterans.

The complaint alleges officials never conducted the legally required Americans with Disabilities Act (ADA) analysis, instead relying on stereotypes and hostility toward veterans with disabilities.

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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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Tim Walz Goes It Alone: Uses Executive Orders for Gun Control After Legislature Rejects His Push

Gov. Tim Walz (D) signed executive orders Tuesday expanding Minnesota’s red flag law and creating a “Statewide Safety Council” intended to prevent “mass violence” and “targeted attacks.”

Walz’s gun control executive orders come after the state legislature refused to pass gun control measures he pushed after the August 27, 2025, Minneapolis Catholic school attack, in which a transgender man who had been identifying as a woman opened fire during mass.

According to KSTP, Walz said:

These actions today don’t limit your freedoms at all. Being shot dead in your school certainly does. … There’s no one fix to this, but there are certainly things that we know, there are certain things we’ve learned globally that make a difference, and these two actions will be another step in that direction.

Walz did not mention that the Catholic school attacker used three guns–a pistol, a rifle, and a shotgun–and that he bought all three guns legally, which means he complied with the left’s gun controls on acquisition.

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