On Tuesday, Karoline Leavitt expressed strong criticism of media outlets regarding allegations of massive welfare fraud involving Somali refugees in Minnesota. Following reports of ongoing federal investigations, Leavitt stated on X, formerly Twitter, that “86 people have been charged in a rampant and widespread fraud scheme in Minnesota. Of those 86, 78 are SOMALI!” She emphasized her point, asserting that it does not contribute positively to the country’s values when people seek refuge and subsequently exploit the system designed to assist them.
The backdrop of her comments reveals troubling evidence concerning large-scale misappropriation of federal welfare funds in Minnesota. This state has a significant Somali immigrant population, and investigations suggest these fraud operations not only rob American taxpayers but also potentially finance extremist activities back in Somalia, notably involving al-Qaeda-affiliated al-Shabab. Such findings highlight a critical issue of accountability for those who come to the United States under the auspices of fleeing danger.
Acting U.S. Attorney Joseph Thompson called the fraud cases “among the most egregious examples of fraud we’ve ever seen against the American public.” Numerous indictments involve individuals from Minnesota’s Somali community exploiting welfare programs like Feeding Our Future and Medicaid. One shocking case revealed a loss of an estimated $250 million due to fraudulent claims linked to child nutrition initiatives during the pandemic.
The investigations detail how perpetrators created fake companies and falsified records to siphon off welfare funds, many of which were funneled to Somalia via hawalas, informal money transfer systems frequently used by the Somali diaspora. Counterterrorism officials warn that each dollar sent through these channels aids al-Shabab. A former member of Minneapolis’s Joint Terrorism Task Force pointedly stated, “Every scrap of economic activity… anywhere Somalis are concentrated, every cent that is sent back to Somalia benefits al-Shabab in some way.” Another federal source starkly characterized the financing, declaring that “the largest funder of al-Shabab is the Minnesota taxpayer.”
The fallout from these fraudulent activities has been severe. Taxpayers have borne the brunt of the losses, amounting to billions of dollars. Those who genuinely rely on governmental assistance for necessary services now find fewer resources available. The Missouri Department of Human Services has even shut down its Housing Stability Services program, overwhelmed by costs that skyrocketed from $2.6 million to $100 million in just five years, showcasing the rampant abuse of a system meant to support the vulnerable.
David Gaither, a former Republican Minnesota state senator, noted the challenges faced by legitimate recipients of assistance. He stated, “There are people that legitimately need those resources who are not getting them. It’s beyond criminal.” This sentiment resonates within the community, where some have expressed that political pressure and fears of being labeled discriminatory have impeded proper enforcement and oversight.
Amidst this turmoil, Kayesh Magan, a Somali-American fraud investigator, conveyed his distress regarding the situation. He remarked, “Nearly all of the defendants are from my community. It’s uncomfortable and true.” Magan highlighted how some within the community have used race and religion to evade accountability. He voiced concern that the political influence of certain groups has obstructed justice, facilitating a climate of impunity for offenders.
The extent of the fraud was illuminated during court proceedings tied to Feeding Our Future, where it was uncovered that fraudulent entities claimed to provide meals to thousands of children at non-existent sites, submitting fabricated attendance documentation. There were even attempts to bribe jurors with cash left in their mailboxes, alongside messages alleging racism and discrimination against Somali immigrants.
Some of the stolen funds were funneled abroad under the guise of family remittances. Investigators tracking financial movements discovered inflated transfers that exceeded the income levels of many senders, who were also recipients of welfare benefits. Retired detective Glenn Kerns observed cases where welfare recipients sent substantial sums back to Somalia, asserting that such money doesn’t merely support families but is also funneled to warlords and terrorist groups.
Federal investigations are ongoing, and although there have been several convictions, there are calls for more decisive action. In November, 50 Minnesota GOP House members and four Republican Congress members urged U.S. Attorney Daniel Rosen to broaden the federal inquiry, citing evidence that Minnesota’s social programs are being exploited not just within the state but are also contributing to terrorism at an international level. Rep. Brad Finstad, among those advocating for increased scrutiny, remarked, “It is bad enough that these individuals are defrauding our state… but now there is a good reason to believe that Minnesota taxpayer dollars are going straight into terrorists’ hands.”
The political ramifications are becoming apparent. Previous actions, such as President Trump’s order to end Temporary Protected Status for Somalis, ignited backlash from Democrats and local Somali leaders, who claimed systemic bias. Nevertheless, the ongoing criminal investigations and the sheer scale of misappropriated funds keep attention focused on the federal oversight failures that have allowed systemic fraud to flourish.
Ryan Thorpe, an investigative journalist, insists that merely increasing law enforcement is insufficient to address the problem. He asserted, “There isn’t a law-enforcement solution to this; it’s simply playing whack-a-mole.” Experts concur that comprehensive changes to federal welfare regulations are essential to prevent further abuses in Minnesota and beyond.
Leavitt’s comments resonated with a segment of the populace increasingly frustrated by the apparent exploitation of welfare systems. Her words cut through the noise, as she highlighted the disproportionate involvement of Somali nationals in these fraud cases. “What does NOT add to our nation’s character,” Leavitt said, “is refugees who come here under the alleged plight of fleeing persecution and then ABUSE OUR SYSTEM.” As investigations progress and more information is revealed, it becomes increasingly clear that addressing these issues requires more than short-term fixes… it demands systemic transformation and accountability.
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