Treasury Secretary Scott Bessent has launched an investigation into allegations of large-scale fraud within multiple programs in Minnesota. This decision underscores a serious concern regarding the management of taxpayer funds under Governor Tim Walz’s administration. Bessent’s announcement highlights the need to ensure accountability amidst claims that Minnesota’s welfare system may be linked to the financing of terrorism. He stated on social media, “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 to the terrorist organization Al-Shabaab.”
These allegations of fraud were first reported last month by City Journal, which claimed that billions of taxpayer dollars have been misappropriated during Walz’s tenure. According to the article, Democratic officials have failed to effectively monitor one of the United States’ most generous welfare systems. The report raises unsettling questions about the flow of public funds, indicating that members of Minnesota’s Somali community may be involved. It suggests that millions in stolen funds have been sent to Somalia, ultimately benefiting Al-Shabaab. A source cited in the report shockingly stated, “The largest funder of Al-Shabaab is the Minnesota taxpayer.”
The issues don’t stop there. A former investigator noted, “Every scrap of economic activity, in the Twin Cities, in America, throughout Western Europe, anywhere Somalis are concentrated, every cent that is sent back to Somalia benefits Al-Shabaab in some way.” This assertion emphasizes that any transfer of funds from Minnesota potentially aids terrorism through the connections between local Somali communities and Al-Shabaab’s financial networks.
Further elaborating on these financial connections, Glenn Kerns, a retired police detective, described a vast pipeline transferring money from Minnesota to Somalia, estimating that as much as $20 million was sent overseas in just one year. He pointed out the incongruity of much of this money, claiming to originate from individuals on Department of Homeland Security benefits. “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,” he said.
The investigation reveals serious flaws across various welfare programs. Minnesota’s Medicaid Housing Stabilization Services program, which initially had a projected budget of $2.6 million, shockingly incurred a cost of $61 million within the first six months of the year. Several individuals have been indicted for fraud in this program, six of whom are linked to the Somali community.
Additionally, there have been legal issues arising from another agency known as Feeding Our Future, which has connections to U.S. Representative Ilhan Omar. Reports indicate that 56 individuals have pleaded guilty to a $250 million fraud scheme associated with this organization. Concerns are also raised about a $14 million scam within Minnesota’s Early Intensive Developmental and Behavioral Intervention program. Allegedly, parents enrolled their children to receive unnecessary autism services and profited from kickbacks. Disturbingly, the rate of autism diagnoses among Somali four-year-olds in Minnesota is more than triple the state average, raising further suspicions about the legitimacy of these claims.
U.S. Attorney Joseph Thompson aptly noted, “This is not an isolated scheme. From Feeding Our Future to Housing Stabilization Services and now Autism Services, these massive fraud schemes form a web that has stolen billions of dollars in taxpayer money.” This comprehensive investigation and its shocking implications cast a long shadow over Minnesota’s welfare system, revealing a larger pattern of misconduct and mismanagement that demands scrutiny. Each new revelation adds complexity to a troubling narrative about how taxpayer dollars are being used—or misused—in the state.
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