Minnesota’s Fraud Crisis Explodes As Investigators Uncover Missing Billions

Minnesota has shifted from being the land of 10,000 lakes to the land of billion-dollar frauds. Gov. Tim Walz has faced mounting scrutiny as multiple large-scale fraud schemes have unfolded during his tenure. Recent reports indicate Minnesota has suffered substantial taxpayer-funded fraud, much of it allegedly involving individuals within the state’s Somali community.

The state is still recovering from the fallout of the $250 million Feeding Our Future case, as new reporting from City Journal uncovered additional alleged fraud tied to Minnesota’s Medicaid Housing Stabilization Services program.

The report also noted accusations that millions from the scheme were funneled to the terror group Al Shabaab.

Investigators estimate the total fraud at roughly $1 billion across various public assistance programs.

Fox News reported the amount may ultimately be far higher. “Fraud investigators are finding in Minnesota is growing by the day,” Fox News National Correspondent Garrett Tenney reported.

“Kelly Loeffler, who leads the Small Business Administration, says in the two days her agency has been investigating the state, they’ve uncovered at least $1 million in PPP fraud.”

Tenney added that whistleblowers told lawmakers “they believe the total amount of fraud could total up to more than $8 billion.”

Walz has faced questions over accountability as he defended the state’s programs.

“And in spite of the headwinds we’re up against, Minnesota ranks economically, economic growth, happiness, number of people insured, education levels near the very top,” Walz said, pointing to a budget surplus that does not account for the alleged fraud losses.

“If folks are going to commit crimes here, thinking because our generous spirit and our programs that we have is going to give them some kind of cover, they are sadly mistaken,” he said.

Aside from the questions directed at Walz, RedState Editor Bob Hoge reported that Rep. Ilhan Omar has ties to at least two individuals linked to the alleged schemes.