Federal Homeland Security officials have initiated a major fraud investigation in Minneapolis, following years of probes into schemes like the $300 million 'Feeding Our Future' scam. This action comes amid allegations that potentially half of the $18 billion in federal funds allocated to Minnesota since 2018 may have been stolen, prompting a surge in federal resources and escalating political tensions.
Federal Homeland Security officials commenced a significant fraud investigation in Minneapolis on Monday, as announced by Department of Homeland Security Secretary Kristi Noem. This operation follows years of inquiry, most notably the $300 million scheme at the nonprofit Feeding Our Future, which has led to 57 convictions. Prosecutors identified this as the country's largest COVID-19-related fraud scam, where defendants exploited a state-run, federally funded program intended to provide food for children. Earlier in December, a federal prosecutor alleged that half or more of the approximately $18 billion in federal funds supporting 14 programs in Minnesota since 2018 may have been stolen. Minnesota Governor Tim Walz has stated that fraud will not be tolerated, pledging that his administration 'will continue to work with federal partners to ensure fraud is stopped and fraudsters are caught.' Noem posted a video on the social platform X showing DHS officers entering an unidentified business and questioning a person behind the counter, stating that officers were 'conducting a massive investigation on childcare and other rampant fraud.' U.S. Immigration and Custom Enforcement (ICE) posted, 'The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found.' This intensified federal action comes a day after FBI Director Kash Patel stated on X that the agency had 'surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs,' adding that previous fraud arrests in Minnesota were 'just the tip of a very large iceberg.' Political tensions have also been high, with President Donald Trump criticizing Walz’s administration over the fraud cases. The Trump administration’s immigration crackdown has also focused on the Somali community in the Minneapolis-St. Paul area, the largest in the country. Among those running schemes for child nutrition, housing, and autism programs, 82 of the 92 defendants are Somali Americans, according to the U.S. Attorney’s Office for Minnesota. Governor Walz’s spokesperson, Claire Lancaster, affirmed the governor’s long-standing efforts to 'crack down on fraud,' including supporting criminal prosecutions, strengthening oversight, and hiring an outside firm to audit payments to high-risk programs, while also seeking more authority from the Legislature to take aggressive action.
