Treasury Secretary Scott Bessent revealed on Monday that his department will probe serious allegations of widespread fraud involving various programs in Minnesota. In a statement posted on X, Bessent indicated that the investigation aims to uncover how taxpayer dollars might have been funneled to the terrorist organization Al-Shabaab. He asserted, “At my direction, @USTreasury is investigating allegations that under the feckless mismanagement of the Biden Administration and Governor Tim Walz, hardworking Minnesotans’ tax dollars may have been diverted.”
The allegations of fraud first surfaced last month in a report by City Journal, where claims were made that “billions in taxpayer dollars have been stolen during the administration of Governor Tim Walz alone.” The report characterized Minnesota’s welfare system as “one of the most generous” in the country, condemning Democratic state officials for being “asleep at the switch” in their oversight.
One of the most troubling aspects of this allegation involves Minnesota’s Somali community. According to federal counterterrorism sources, millions in misappropriated funds have reportedly been sent back to Somalia, ultimately benefiting Al-Shabaab. As one source put it bluntly, “The largest funder of Al-Shabaab is the Minnesota taxpayer.” This striking claim underscores a troubling connection between local welfare fraud and international terrorism, raising significant ethical and security concerns.
Glenn Kerns, a retired detective from the Seattle Police Department with years of experience on a federal Joint Terrorism Task Force, made eye-opening statements about the financial network connecting Minnesota to Somalia. Kerns noted that “the amount of money was staggering,” pointing out that in one year, as much as $20 million flowed from sources in Minnesota to Somalia. He voiced disbelief at the situation, saying, “All these Somalis sending out money are on DHS benefits. How does that make sense? We had good sources tell us: this is welfare fraud.”
The fraudulent activities themselves extend beyond individual cases. For instance, Minnesota’s Medicaid Housing Stabilization Services program, with a projected annual cost of $2.6 million, ballooned to an astonishing $61 million within just the first six months of this year. Six individuals from the Somali community faced indictment in connection with this program. A striking indictment of the system’s failures, it highlights the need for accountability in government-funded assistance programs.
The fraudulent schemes appear to have taken various forms, evident in alarming statistics such as one in sixteen Somali four-year-olds in Minnesota reportedly diagnosed with autism—more than triple the state average. U.S. Attorney Joseph Thompson addressed the expansive nature of the fraud, stating, “This is not an isolated scheme.” He referenced cases stretching from Feeding Our Future to Housing Stabilization Services and autism services, describing them as interconnected components of an intricate web that has siphoned billions from taxpayers.
As the investigation unfolds, the implications of these findings are far-reaching. They not only raise questions about state oversight but also about the ethical responsibilities of those managing taxpayer-funded programs. The potential misuse of funds—not just for personal gain but also for financing terrorism—demands urgent attention. The Treasury’s investigation marks an important step in addressing these serious allegations and ensuring that the integrity of public funds is maintained.
Overall, this investigation is a troubling reminder of the potential risks embedded in welfare systems when oversight fails. As allegations of fraud and ties to terrorism surface, it becomes increasingly critical to scrutinize the mechanisms behind public assistance programs and hold accountable those who exploit them for personal or malicious gain.
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