FBI Tackles Large-Scale Fraud Schemes Exploiting Federal Programs in Minnesota
The FBI has deployed additional personnel and resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs, according to director Kash Patel's social media statement. This effort has led to the dismantling of a $250 million Covid-era food aid fraud scheme, resulting in 78 indictments and 57 convictions. Prosecutors estimate that up to $9 billion has been stolen across schemes linked to Minnesota's Somali population, a figure comparable to Somalia's GDP.
Online attention focused on a Minneapolis daycare allegedly receiving $4 million despite reportedly having no enrolled children. Notably, the FBI had already increased resources in Minnesota prior to that report surfacing.
The coverage highlights previous portrayals by the Trump administration, which depicted Minnesota's Somali immigrant community as a hub of fraud. This included actions against protections for Somalis in Minnesota and criticism of Governor Walz. In response, Representative Ilhan Omar has pushed back against intimidation and scapegoating, alleging that ICE has questioned constituents and raised immigration-status issues. Omar also criticized the Trump administration's immigration policy as cruel and dangerous.
Further reports claim that three individuals accused of defrauding the state have ties to Omar. Additionally, it was noted that Omar's husband, Tim Mynett's firm Rose Lake Capital, reportedly purged key officer details. Listed removals include Adam Ereli, Max Baucus, Alex Hoffman, and William Derrough. The firm’s net worth is estimated to be over an undisclosed amount.
Patel stated that the $250 million case is just the tip of a much larger iceberg, with some suspects potentially facing denaturalization and deportation proceedings where eligible.
