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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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 High School Threatens to Suspend Students Who Talk Positively About ICE

A Minnesota high school has threatneed to suspend students who talk positively about Immigration and Customers Enforcement (ICE) agents.

Paul Paetzel, the principal at Edina High School in Minnesota, has warned that making reference to the work of ICE agents and President Trump’s policy of mass deportations goes against the “culture” that his school is trying to foster.

He wrote in a letter parents:

I want to speak directly and proactively about the culture we are committed to creating at Edina High School.

As we continue to grow as a community, it is essential that we are clear about the expectations we hold for language and behavior that honor the dignity of every student.

Making light of immigration threats or referencing ICE in ways that cause fear or humiliation is a serious offense and not representative of our core values.

Behavior of this nature fundamentally violates our commitment to providing a safe and equitable learning environment free from harassment.

Such language and behaviors directly contradict Edina Public Schools’ vision and mission, and what we expect of our students.

If this type of behavior occurs, we will honor the discipline policy and move forward with consequences up to and including suspension.

Our responsibility is to protect every student’s right to feel safe, respected, and valued at school.

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