Tag: taxes

Walz administration claims fraud in Minnesota is not ‘uniquely bad’

The Minnesota Department of Human Services (DHS) published a so-called “fact check” this week which attempted to “correct misleading information and outright false claims about Medicaid fraud in Minnesota.”

In its fact check, DHS pushed back against claims surrounding Minnesota’s ongoing fraud problems. One of the claims the agency “fact checked” was an unattributed statement which said: “Minnesota’s fraud problem is uniquely bad.”

Shockingly, DHS rejected that claim.

“Fraud is a nationwide challenge and is not unique to Minnesota,” it said. “Higher visibility does not equal higher fraud. Targeted misinformation thrust Minnesota in the spotlight, but we are committed to leading the nation in Medicaid program integrity and fighting fraud.”

Attempting to support its argument, DHS referenced fraud scandals that have occurred in other states. Among them was a $490 million healthcare fraud scheme in California, a $2.5 billion Medicaid scheme in Arizona, and an alleged $14.6 billion Medicaid and Medicare fraud scheme that occurred in New York, Illinois, California, and North Carolina.

While those schemes are substantial, all of those states are larger than Minnesota, and some of those states are significantly larger than Minnesota. Yet, Minnesota still rivals, or outpaces, the fraud schemes being perpetrated in those states.

Since 2022, federal authorities in Minnesota have prosecuted fraud in the $250 million Feeding Our Future scheme. Additionally, the Minnesota U.S. Attorney’s Office estimated that fraud in 14 state-run, Medicaid-funded programs could exceed $9 billion since 2018.

Dozens of people, the overwhelming majority of whom are from the Somali community, have been charged and convicted in Minnesota’s ongoing fraud saga. Fraud has turned into the top political issue in Minnesota, and Gov. Tim Walz was all but ushered into an early retirement because of it.

On top of this, federal prosecutors in Minnesota have repeatedly highlighted how Minnesota is an outlier when it comes to this fraud.

Keep reading

“They Thought They Were Untouchable”: US Seizes 134 Acres In Texas Used By Mexican Cartel

More than 134 acres in Texas that was being used by a drug cartel for smuggling activities has been taken over by U.S. authorities, Customs and Border Protection (CBP) said in a Feb. 10 post on X.

“We took the land and everything on it,” the post said.

A video shared with the post showed law enforcement officers arresting several people.

“They thought they were untouchable. They were wrong. Over 134 acres of land and property, taken from the westside Gulf Cartel, a terrorist organization operating near Rio Grande City, Texas,” according to the video.

The Gulf Cartel is a drug trafficking organization from Mexico that moves arms and migrants into the United States, and has engaged in the kidnapping and murder of American citizens. Drug cartels have been known to use U.S. lands to grow marijuana, with such activities exploiting sanctuary state policies and the sovereignty of native tribal lands.

In a message to the cartels, CBP said, “You think this is just about arrests? It’s not. We are dismantling your operations from the ground up. We’re cutting out your safe houses, your staging areas, your corridors. This is your warning.”

Over the past year, authorities have seized several cartel-linked assets.

In May, the Treasury’s Office of Foreign Assets Control sanctioned two high-ranking members of the Cartel del Noreste (CDN), a drug trafficking organization from Mexico. As a result, all assets and interests in assets of the designated individuals in the United States were blocked.

In March, the Office of Foreign Assets Control sanctioned six people and seven entities for being involved in money laundering activity to support the Mexico-based Sinaloa Cartel, resulting in blocking their assets in the United States.

“Laundered drug money is the lifeblood of the Sinaloa Cartel’s narco-terrorist enterprise, only made possible through trusted financial facilitators like those we have designated today,” Treasury Secretary Scott Bessent said at the time.

“Treasury, as part of a whole-of-government approach to addressing this pressing national security threat, will use all available tools to target anyone who assists the cartels in furthering their campaign of crime and violence.”

Sen. Mike Lee (R-Utah) has introduced the Cartel Marque and Reprisal Authorization Act to seize cartel assets, according to a Dec. 18 statement from the lawmaker’s office.

The bill would authorize President Donald Trump to commission private U.S. operators under letters of marque to take over cartel assets on land and sea. A letter of marque is a written authority granted to a person by the government to seize the goods of enemies. Such letters once used to be a common tool against piracy.

Under the bill, private operators would have the right to employ “all reasonably necessary means” to seize assets outside the United States.

“The Constitution provides for Letters of Marque and Reprisal as a tool against the enemies of the United States,” Lee said.

Keep reading

State senator tells Congress: ‘Minnesota is ground zero for the fraud epidemic’

A Minnesota state senator took the national stage Tuesday and delivered a blistering assessment of the state’s handling of taxpayer dollars.

Sen. Mark Koran, R–North Branch, testified before a U.S. Senate Homeland Security & Governmental Affairs subcommittee during a hearing titled “Examining Fraud and Foreign Influence in State and Federal Programs.”

The hearing, chaired by U.S. Sen. Josh Hawley, R-Mo., focused in part on what lawmakers described as widespread fraud in Minnesota’s social welfare programs.

Koran, who has served nine years in the Minnesota Senate and on the Legislative Audit Commission, painted a picture of systemic failure.

“I appreciate the opportunity to share my insight on the fraud as I’ve seen it in my nine years as Minnesota state senator as well as being on the Legislative Audit Commission,” Koran began.

He described the bipartisan commission as responsible for appointing the nonpartisan legislative auditor, whose job is to review programs across state government and flag misuse of taxpayer dollars.

“I can tell you that most of these audits are bad,” Koran said. “One of the most common failures is state agencies not verifying that grant recipients did the work that they were paid to do.”

He cited a January 2026 audit in which, he said, “state employees were backdating and fabricating documents after an audit had started, looking to mislead our auditors.”

“Fraud in Minnesota is pervasive and systemic, from the executive branch through the state agencies,” he said. “Even when the legislature puts safeguards in place, they’re often ignored and there are rarely any real consequences.”

Koran did not mince words when describing the scope of the problem.

“The devastation of this incompetence and complicity totals far more in dollars than the media, Gov. [Tim] Walz, or the Democrats admit in public. It’s not millions, it’s not hundreds of millions, it’s billions of dollars stolen,” he testified.

He placed part of the blame squarely on Gov. Walz and Attorney General Keith Ellison.

Keep reading

State Department Hones In On Left-Wing NGOs As Vectors Of Chinese Influence Operations

It appears the Trump administration is finally getting serious about dark money-funded NGOs that are sowing chaos on America’s city streets, with apparent links to foreign influence operations. More alarmingly, these same nonprofits appear to sit at the center of the protest industrial complex and are actively amplified and promoted by prominent members of the Democratic Party. This highly organized and well-funded protest machine has waged an endless decade-long color revolution-style operation of chaos against President Trump.

The New York Post reports the State Department has sent a report to Congress connecting the left-wing nonprofits Code Pink and the People’s Forum to Chinese propaganda influence operations, mostly because of their direct association with China-based Marxist Neville Roy Singham, who operates the so-called “Singham network” of nonprofits.

The Post wrote:

“Partisan hacks spent years peddling the phony Russia collusion hoax while turning a blind eye to the sprawling web of far-left activist organizations who push the agendas of the Chinese Communist Party,” Under Secretary of State for Public Diplomacy Sarah Rogers said in a statement provided to The Post.

“Organizations like Code Pink and the People’s Forum denigrate the United States, whitewash the violence of Marxist regimes, and run cover for China while enjoying an influx of cash from a donor network with connections to the Chinese Communist Party,” Rogers added.

“The State Department will pursue complete transparency for the donor and NGO networks that lobby for our adversaries and seek to weaken the resolve of the United States.”

And continued:

The report on “Countering Foreign Information Manipulation and Interference” alleges that China “spreads propaganda through influence campaigns run by nonprofit organizations like Code Pink, the People’s Forum and groups linked with the notorious Singham network.”

The so-called “Singham network” are nonprofits funded by tech mogul Neville Roy Singham, whose wife is a co-founder of Code Pink.

Singham, an American expat living in China, “works closely with the Chinese government media machine and is financing its propaganda worldwide,” the New York Times reported in 2023.

“Chinese diplomats, state media, and pro-China influencers use social media, content-sharing agreements, and local partnerships to publish pro-CCP propaganda,” the report continues. “China invests in [public diplomacy], exchanges, reporting tours, and educational and cultural initiatives to boost its image.”

“The Department assesses that China, Iran, and Russia aggressively use state media, proxies, and digital platforms to spread propaganda and falsehoods, undermine U.S. credibility and policies, and expand their influence.”

Keep reading

Ilhan Omar Posts Stunning Tweet that Seemingly Calls for President Trump’s EXECUTION After He Comments on Somali Fraud

Rep. Ilhan Omar (D-MN) made an extremely disturbing statement on X that many are interpreting as a call for President Trump’s execution.

On Tuesday, Trump sat down for an interview with Larry Kudlow on Fox Business to discuss his administration’s efforts to crack down on the massive fraud happening across America, espically in Minnesota.

At one point, Trump specifically referenced the Somali community’s role along with Omar’s in the fraud.

“Somalia has come in here. What they’ve done to our country, these people, they’ve come into our country, and what they’ve done with that fake congresswoman. She’s so bad,” Trump to Kudlow.

Omar was furious at what she read. She proceeded to blast Trump as the head of the “Ped*phile Protection Party” before talking baout what Somalia does with p*dophiles.

“The leader of the Ped*phile Protection Party is trying to deflect attention from his name being all over the Epstein files,” Omar wrote.

“At least in Somalia, they execute ped*philes, not elect them, she added.

Did she call for Trump’s execution? You be the judge.

Keep reading

“Train Wreck” US Adds $481 Billion In Debt In 3 Months

The government hit the debt ceiling back in January which blocked any net new debt from being created from January to June. Once the debt ceiling was lifted, the government wasted no time in catching up for all the months where borrowing was frozen. Over the last 7 months, the government borrowed an incredible $2.28T!

Note: Non-Marketable consists almost entirely of debt the government owes to itself (e.g., debt owed to Social Security or public retirement)

January was a very small month, but the chart below shows that $2.3T was borrowed for all of 2025. This follows $2.6T and $2.2T in 2023 and 2024. Needless to say, there seems to be a new standard of $2T+ annual borrowing. This will likely mean adding $10T every 4 years at current rates. More than likely that is going to accelerate going forward.

Keep reading

A Tiny Alabama Town Ran an Outrageous Speed Trap. Now It Will Pay $1.5 Million To Settle a Lawsuit.

The hamlet of Brookside, Alabama, has agreed to pay $1.5 million to settle a civil rights lawsuit three years after local news investigations revealed that it was running a predatory speed trap.

The Institute for Justice, a public interest law firm that sued Brookside in 2022 on behalf of motorists who said they were framed and swindled by the town, announced on Monday that it had reached a settlement agreement that would require substantial transparency and policing reforms, in addition to payments to the class members.

Brookside became a national news story in 2022 after the Birmingham News reported that the small town’s unusually large police force was bankrolling the city budget by fining people traveling through and towing their cars under what motorists claimed were fabricated charges.

It was one of the worst cases of profit-motivated policing in recent memory: The news investigation found that Brookside, a place with no traffic lights and one commercial property, a Dollar General store, “collected $487 in fines and forfeitures for every man, woman and child.” By 2020, two years after Brookside expanded its police force from one officer to nine and began aggressively pursuing traffic enforcement, income from fines and forfeitures comprised 49 percent of the town’s budget. Motorists alleged that they were getting pulled over for fake traffic violations, slapped with bogus charges, then forced to pay thousands in fines and towing fees after being convicted in Brookside’s municipal court.

The investigations led to the resignation of the Brookside police chief, a Pulitzer Prize for the reporters, and a class action lawsuit filed by the Institute for Justice.

“Police are supposed to protect and serve, not ticket and collect,” Chekeithia Grant, one of the named plaintiffs in the case, said in an Institute for Justice press release Monday. “When that gets flipped around, people suffer. We brought this case to remind Brookside of that, and to get the town on the right track. This settlement should do that. And it should be a warning to other towns.”

According to the lawsuit, Grant and her daughter were both arrested by Brookside police following a traffic stop and falsely charged with possession of marijuana, possession of drug paraphernalia, obstruction of government operations, and resisting arrest. Both were convicted in the Brookside Municipal Court, but town prosecutors agreed to dismiss all the charges after the two women appealed to a county court. But by then, they had already paid roughly $2,000 in fines and fees to Brookside.

Brookside’s racket was so outrageous that the Justice Department filed a “statement of interest” in support of the Institute for Justice’s lawsuit, noting the perverse profit incentives that such schemes create:

Judges should not profit from their decisions in cases. Nor should funding for prosecutors or police officers depend substantially on unnecessarily aggressive law enforcement aimed at generating income through fines and fees. Criminal justice systems tainted by these unreasonable incentives stand to punish the poor for their poverty and put law enforcement at odds with the communities they are meant to serve.

However, Brookside was just a particularly odious example of the classic American speed-trap town, a municipality that survives by latching onto a nearby highway and gorging itself, like a bloated tick, on traffic enforcement revenue.

States have often responded to negative publicity from speed-trap towns with legislative reforms, and Alabama was no different. A few months after Brookside’s practices were exposed, the Alabama state legislature passed a bill capping the revenue municipalities can keep from fines to just 10 percent of their general operating budgets.

In addition to the $1.5 million payout to the lawsuit class, the proposed settlement will require Brookside to end many of the financial incentives tied to its traffic enforcement, such as repealing its fee to retrieve towed cars. The Brookside Police Department would also stay off the nearby interstate for the next 10 years, except for emergency response, and there would be 30 years of strict caps on how much revenue the town could keep from policing and code enforcement.

Keep reading

The Heavy Pot Taxes Favored by The New York Times Would Undermine Legalization

The New York Times embraced legalization of recreational marijuana in 2014, two years after Colorado and Washington became the first states to take that step. By that point, most Americans opposed pot prohibition, and that majority has grown since then.

Although the Times does not regret endorsing legalization, its editorial board now says stricter regulation and heavier taxation are necessary to curtail the costs associated with marijuana abuse. Those recommendations elide two inconvenient facts: Cannabis is still federally prohibited, and states are still struggling to replace unauthorized pot peddlers with government-licensed marijuana merchants.

The Times emphasizes that “occasional marijuana use is no more a problem than drinking a glass of wine with dinner or smoking a celebratory cigar.” But while marijuana “is safer than alcohol and tobacco in some ways,” the Times says, “it is not harmless.”

Frequent cannabis consumption has increased substantially in recent years, the Times notes, and roughly one in 10 marijuana users “develops an addiction.” Even nonaddicted cannabis consumers “can still use it too much,” it says, since “people who are frequently stoned can struggle to hold a job or take care of their families.”

The Times also mentions cannabinoid hyperemesis syndrome, “marijuana-linked paranoia,” and the danger posed by stoned drivers. “Any product that brings both pleasures and problems requires a balancing act,” the Times says, which means “personal freedom” must be curtailed to protect “public health.”

That formulation is inherently paternalistic, since the “public health” burden to which the Times refers is borne mainly by cannabis consumers themselves. And the moral logic of the hefty marijuana taxes that the Times favors is questionable.

Those taxes would add to the difficulties that some heavy consumers face while punishing the occasional use that the paper says is no big deal. Although “adults should have the freedom to use” marijuana, the Times says, they must pay the government for that privilege.

A tax-based “balancing act” also raises practical difficulties. “The first step in a strategy to reduce marijuana abuse should be a federal tax on pot,” the Times says, gliding over the point that Congress cannot impose an excise tax on marijuana products unless it is prepared to legalize them.

The editorial does not explicitly acknowledge the need for that step. To the contrary, it implicitly criticizes President Donald Trump’s decision to reclassify marijuana under federal law, which falls far short of legalization.

Keep reading

Pritzker’s “Blind” Trust and $20B in Taxpayer Contracts Raise Waste, Fraud and Abuse Questions

Illinois taxpayers are being asked to believe a fairy tale.

They are told that Gov. JB Pritzker’s massive personal fortune sits inside a “blind trust,” safely sealed off from the decisions of the state government. But the numbers tell a different story – one that is becoming impossible to ignore.

Since Pritzker took office in 2019, companies tied to his blind trust have received more than $20 billion in Illinois state contracts, all paid for with taxpayer money.

That is not blindness. That is precision.

A blind trust is supposed to prevent conflicts of interest, not repeatedly intersect with state spending on a scale that dwarfs most state budgets. Yet under Pritzker, taxpayer-funded contracts continue to flow to companies within his financial orbit – healthcare giants, Medicaid contractors, and corporate entities deeply embedded in Springfield’s lobbying culture.

This is not a one-off coincidence. It is a pattern – and patterns are what expose systems.

Illinois has lived under one-party Democratic rule for years. When competition disappears and oversight weakens, corruption doesn’t need to hide. It operates in plain sight, wrapped in legal language and dismissed as “normal.”

That same pattern extends beyond healthcare and into the Pritzker family’s hospitality empire.

Recent disclosures uncovered show that more than $180 million in taxpayer-funded renovations and upgrades have flowed to the Hyatt Regency McCormick Place since 2011.

Keep reading

Minnesota Fraud Whistleblower Claims She Was Subjected to ‘Smear Campaign’ After Reporting Concerns to State

The fallout continues in Minnesota over the explosive allegations of fraud from last month.

One whistleblower is now going on record, saying that she was subjected to a smear campaign after reporting her concerns to the state, saying she was even accused of being a racist.

The most troubling part of these reports for leaders in Minnesota is that they support the idea that they knew this fraud was happening and did nothing to stop it. People need to be prosecuted for this.

FOX News reports:

Minnesota DHS whistleblower details ‘smear campaign’ after reporting fraud concerns to state

A Minnesota Department of Human Services (DHS) whistleblower said she has been raising red flags about fraud in the state since 2019, but has faced only unyielding retaliation in response, calling Gov. Tim Walz’s assertion that he was unaware of the problem “absolutely false.”

Faye Bernstein, who has worked for Minnesota’s DHS for two decades in contract management and compliance, said she was subjected to a “smear campaign” for trying to make leadership aware of illegal contracting practices. She said she was called “racist” and that her work responsibilities were diminished.

“There is just a continuous effort to stifle you, to shut you up. And it is impossible to overcome,” Bernstein said on “Saturday in America.”

Federal prosecutors estimate that up to $9 billion was stolen through a network of fraudulent fronts posing as daycare centers, food programs and health clinics. The majority of those charged, so far, in the ongoing investigation are part of Minnesota’s Somali population.

Rather than receiving thanks for speaking out about irregularities within the contracting process, Bernstein wrote in a letter obtained exclusively by “Saturday in America” that the “nearly unbearable retaliation” she faced also included being “trespassed from all DHS-owned or leased property” and investigated “at a great cost to the state.”

To make matters worse, the fraud allegations just keep coming.

Keep reading