"Fraud warnings were elevated to the most senior levels of the Minnesota state government, meaningful corrective action was delayed or avoided."
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A Republican-led House Oversight Committee report has alleged that the fraud that has been highlighted in Minnesota's social services programs was caused by year of inaction from Democrat Governor Tim Walz, Minnesota AG Keith Ellison, and other officials, allowing for the siphoning off of millions of dollars in taxpayer funds going to fraud. The report found that fears of getting called "racist" also contributed to the inaction.
"Fraud warnings were elevated to the most senior levels of the Minnesota state government, meaningful corrective action was delayed or avoided, and payments continued long after credible signs of fraud emerged," the report read in part.
The report found that it was not legal restraints that led to inaction by the Walz administration in the state, but that concerns about potential racial discrimination claims contributed to fraudsters continuing to get paid for so long.
"Senior officials in Governor Walz’s office and Attorney General Ellison’s office were aware of credible, systemic fraud concerns in social services programs as early as 2019 within the Minnesota Department of Human Services (DHS) and by April 2020 within the state Department of Education (MDE), despite later public statements by Governor Walz suggesting otherwise," the report read.
Despite having the authority to suspend or stop payments to those suspected of fraud, the payments continued. In the Feeding our Future (FOF) fraud case, where over 60 people have been found guilty of fraud and the majority of them being of Somali descent, Walz was aware of the suspected fraud in 2020, but despite this, payments continued.
Ellison also met with those associated with the FOF scheme in 2021, according to audio obtained by the committee. The report from the committee said in that the group of Somali fraudsters were facing alleged discrimination when the Minnesota Department of Education was withholding payments. "The fraudsters pledged the Somali community's political and financial support to Ellison if he were to intervene on their behalf," the report stated.
Ellison responded that he would "fight these people," according to the report. On December 20, 2021, "Ellison received several campaign donations with a combined value of $10,000 from FOF affiliates who are now defendants in the criminal trial."
In another instance where concern for allegations of racism played a part, the report said that MDE "failed to act on its authorities to detect and prevent fraud, blaming their inaction on USDA regulations and Feeding Our Future and the meal providers it sponsored for ongoing litigation and threats about being perceived as racist."
"One MDE official specifically said that she was 'warned not to do anything that would be considered targeting or discriminating against certain diverse communities' when she expressed concerns about fraud," the report read.
There have been over 110 people charged in the FOF case and some of them have been identified as working with other fraudsters in the state, taking advantage of state services connected to healthcare, daycare, and autism services.
"Minnesota Governor Tim Walz and Attorney General Keith Ellison are responsible for one of the most stunning oversight failures this Committee has ever examined," Oversight Committee Chairman James Comer said in a statement. "It is now clear the Walz Administration chose to protect the system rather than protect the taxpayer."
The committee also sent a letter to Vice President JD Vance to urge full audit of Minnesota's social services programs for fraud.
"Fraud warnings were elevated to the most senior levels of the Minnesota state government, meaningful corrective action was delayed or avoided, and payments continued long after credible signs of fraud emerged," the report read in part.
The report found that it was not legal restraints that led to inaction by the Walz administration in the state, but that concerns about potential racial discrimination claims contributed to fraudsters continuing to get paid for so long.
"Senior officials in Governor Walz’s office and Attorney General Ellison’s office were aware of credible, systemic fraud concerns in social services programs as early as 2019 within the Minnesota Department of Human Services (DHS) and by April 2020 within the state Department of Education (MDE), despite later public statements by Governor Walz suggesting otherwise," the report read.
Despite having the authority to suspend or stop payments to those suspected of fraud, the payments continued. In the Feeding our Future (FOF) fraud case, where over 60 people have been found guilty of fraud and the majority of them being of Somali descent, Walz was aware of the suspected fraud in 2020, but despite this, payments continued.
Ellison also met with those associated with the FOF scheme in 2021, according to audio obtained by the committee. The report from the committee said in that the group of Somali fraudsters were facing alleged discrimination when the Minnesota Department of Education was withholding payments. "The fraudsters pledged the Somali community's political and financial support to Ellison if he were to intervene on their behalf," the report stated.
Ellison responded that he would "fight these people," according to the report. On December 20, 2021, "Ellison received several campaign donations with a combined value of $10,000 from FOF affiliates who are now defendants in the criminal trial."
In another instance where concern for allegations of racism played a part, the report said that MDE "failed to act on its authorities to detect and prevent fraud, blaming their inaction on USDA regulations and Feeding Our Future and the meal providers it sponsored for ongoing litigation and threats about being perceived as racist."
"One MDE official specifically said that she was 'warned not to do anything that would be considered targeting or discriminating against certain diverse communities' when she expressed concerns about fraud," the report read.
There have been over 110 people charged in the FOF case and some of them have been identified as working with other fraudsters in the state, taking advantage of state services connected to healthcare, daycare, and autism services.
"Minnesota Governor Tim Walz and Attorney General Keith Ellison are responsible for one of the most stunning oversight failures this Committee has ever examined," Oversight Committee Chairman James Comer said in a statement. "It is now clear the Walz Administration chose to protect the system rather than protect the taxpayer."
The committee also sent a letter to Vice President JD Vance to urge full audit of Minnesota's social services programs for fraud.
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