Minnesota Fifth District U.S. Representative Ilhan Omar and three major trials in Minnesota involving Somali defendants." Read the excerpts below or read the whole thing.The massive public programs fraud committed almost entirely by Somali perpetrators has recently exploded in the national news. The controversy is centered in Minnesota, where the amount of money bilked from American taxpayers could prove to be as high as $9 billion. But the scandal is spreading to other states as well. When
… Long known for having a largely Scandinavian population, Minnesota is now home to the largest Somali population in North America, numbering roughly 100,000, most of whom are congregated in the Twin Cities metropolitan area. The seeds of this community were planted in the early 1990s, when the State Department directed thousands of refugees from Somalia’s civil war to Minnesota. Except for a dip in 2008, the immigration of Somalis into Minnesota has continued unabated, augmented by Somalis arriving from other states. The latter likely has to do with Minnesota’s generous welfare and charity policies. As Professor Ahmed Samatar of Saint Paul’s Macalester College was quoted as saying in a 2015 Washington Times story, Minnesota is “the closest thing in the United States to a true social democratic state.”
The massive fraud currently in the news was not the first controversy surrounding the Somali immigrant community. Around 2015, it proved to be a fertile source of ISIS recruits. … Of ten Minnesota Somalis charged with seeking to join ISIS in Syria, six pleaded guilty and three were convicted at trial in June 2016.
During the trial of the three Somalis who contested the charges, it became clear, primarily from recordings introduced into evidence, that although they gave the outward appearance of American assimilation, they hated America. They took advantage of educational and employment opportunities and moved into and out of the workforce at will. At one time, all three worked at a UPS facility in a leafy Saint Paul suburb, where they enjoyed watching ISIS videos of beheadings during their breaks.
Foreshadowing the fraud scandals of today, the Somalis involved in terrorism showed themselves to be sophisticated in their creative use of social welfare benefits. Two of four Somali ISIS recruits intercepted at New York’s JFK airport while en route to Syria had used federal financial aid funds to pay for their travel. One financed his planned trip to Syria with a $5,000 debit card withdrawal on his student loan account.
In the decade since, the controversy over terrorist recruitment of Somalis has receded and the Somali abuse of social welfare programs has proliferated.
Child Care Fraud
The defrauding of Minnesota’s Child Care Assistance Program for day care services, although brought dramatically to national attention by Nick Shirley in late December, goes back more than ten years. Jeff Baillon, a Twin Cities TV reporter, reported on day care frauds in 2013 and 2015. A year ago this month Jay Kolls, another local reporter, went to two of the ten sites Shirley visited and reported that one of them was guilty of 95 violations—including “no records for 16 children”—between 2019 and 2023. But taxpayer funds continued to flow to these programs.
… Minnesota’s Office of the Legislative Auditor issued a detailed report on child care fraud in 2019. On the question of how much had been stolen, the report restricted itself to amounts established in convictions. Because convictions were few and far between, that only came to between $5 million and $6 million. But the report concluded, citing the lax administration of the day care program, that the level of fraud was likely higher. Indeed! And the laxity continues. Jim Nobles, the legislative auditor at the time of the 2019 report, wrote a recent column in The Minnesota Star Tribune decrying the “permissive approach” of Minnesota’s state government that makes it “easy for fraudsters to steal” and questioning why nothing had been done over many years to “implement standard financial controls and oversight.”
Feeding Our Future Fraud
In that same Star Tribune column, Nobles wrote: “We now know that the fraud scheme used in the state’s child care program has been used frequently in other state human service programs.” A dramatic example of this is the case that has become known as the Feeding Our Future fraud.
Feeding Our Future is a nonprofit organization that served as a sponsor of sites like day care centers and restaurants that participated in two federal nutrition programs. During the peak Covid period, from April 2020 until January 2022, Feeding Our Future and its sites and their vendors found it remarkably easy to bilk these programs by filing false claims for reimbursement supported by false meal counts, fake rosters, and bogus invoices.
… It is important to note that suspected fraud was often never fully investigated because government overseers were easily scared off by absurd claims of racism—charges that continue to be leveled even today. …
Medicaid Fraud
The Feeding Our Future fraud cases opened a window on scams involving several Minnesota Medicaid programs. After the FBI executed search warrants in one such case in July of last year, then-Acting United States Attorney Joe Thompson—who until very recently was leading both the Feeding Our Future and the Medicaid fraud prosecutions—called a press conference in September to announce criminal charges against the first eight Medicaid fraud defendants, all of whom are Somali.
… Uncovering fraud in Minnesota is like playing with Russian nesting dolls. “Many of the owners of [the involved HSS] companies,” Thompson said, “had one or more other companies through which they billed other Medicaid programs such as the [Early Intensive Developmental and Behavioral Intervention] program, the Adult Rehabilitative Mental Health Services program, the Integrated Community Support program, the Community Access for Disability Inclusion program, [Personal Care Assistance] services, and other Medicaid-waivered services.” The details of these cases were almost incidental to Thompson’s main point—that “Minnesota is drowning in fraud.”
“It feels never-ending,” Thompson said. “I have spent my career as a fraud prosecutor and the depth of fraud in Minnesota takes my breath away.”
On December 18 of last year, Thompson called another press conference to announce charges against six more defendants in connection with Minnesota’s Medicaid programs. The new cases involved allegedly fraudulent claims in programs for housing, autism services, and assistance for disabled adults seeking to live independently. “Every day we look under a rock and find a new $50 million fraud scheme,” Thompson said.
The total amount of money disbursed through these programs since 2018 is $18 billion. Based on his ongoing investigations, Thompson estimated that as much as half that amount—$9 billion!—may have been paid out on fraudulent claims. “The magnitude cannot be overstated,” Thompson said. “What we see in Minnesota is not a handful of bad actors committing crimes. It’s a staggering, industrial-scale fraud.” Four of the six defendants charged in December are Minnesotan Somalis, and those involved in the uncharged cases under investigation are almost entirely Somali.
Political Responsibility
Two defendants from Philadelphia, Anthony Waddell Jefferson and Lester Brown, undertook what Thompson called “fraud tourism.” Having heard that Minnesota’s HSS program presented an easy mark, they set up in Minnesota to become fraudulent service providers. One wonders how word of this was able to make its way to Philadelphia but not to the State Capitol in Saint Paul, where the people’s elected officials are charged with protecting the public interest.
In a Star Tribune interview, Thompson cast the net widely in terms of responsibility: “This fraud crisis didn’t come out of nowhere. It’s the result of widespread failure across nearly every level of leadership in Minnesota: Politicians who turned a blind eye. Agencies that failed to act. Prosecutors and law enforcement who didn’t push hard enough. Reporters who ignored the story. Community leaders who stayed silent. And a public that wanted to believe it couldn’t happen here.”
Partly because it’s a problem that the people can solve directly, I would focus on the politicians. Three in particular.
The first is Governor Tim Walz. … Walz will never live down the frauds committed on the agencies under his jurisdiction.
The second is Attorney General Ellison … Like Walz, Ellison continues to refuse to sit for an interview with a serious reporter to answer questions about what he knew about the fraud and when he knew it. Nor has anyone in the mainstream media made an issue of that fact, which is a scandal in its own right.
The third is U.S. Representative Ilhan Omar. Even if we leave aside the fact that she immigrated to the U.S. as a fraudulent member of the Omar family and later married her biological brother in her own Elmi family for further fraudulent purposes, we could still fairly describe her as Somali Fraud Exhibit A. She sponsored the MEALS Act that facilitated the Feeding Our Future fraud, and her congressional district served as its epicenter. She was a friend of Salim Said, Aimee Bock’s co-defendant in the second Feeding Our Future trial. She filmed a promotional video at Said’s restaurant that was introduced by Said’s lawyer at trial, although it actually served to support the charges against Said. Yet despite these facts, Omar claims to have known nothing about the fraud.
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Public programs fraud on the scale we see today in Minnesota—and to a lesser degree (so far at least) in other states—indicates a leadership class that has either forgotten or no longer takes seriously the idea that public office is a public trust. What more fitting time could there be than the 250th anniversary year of the Declaration of Independence to restore the moral power of that idea in irresponsible state governments like that of Minnesota?
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