Investigation Reveals Billions in Fraudulent Welfare Payments
A recent investigation by the Manhattan Institute’s City Journal has uncovered a troubling scheme involving the misappropriation of billions in taxpayer funds during the tenure of Minnesota Governor Tim Walz. The report highlights that a significant portion of this fraud is attributed to members of the state’s large Somali community.
According to federal counterterrorism officials, millions of dollars in stolen welfare funds have been redirected back to Somalia, ultimately benefiting the terrorist group Al-Shabab. One source noted, “The largest funder of Al-Shabab is the Minnesota taxpayer,” emphasizing the gravity of the situation.
In response to these revelations, former President Donald Trump took to social media, declaring Minnesota under Governor Walz as a center for fraudulent activities. He announced an immediate termination of the Temporary Protected Status (TPS) program for Somalis residing in Minnesota, stating, “Somali gangs are terrorizing the people of that great state, and billions of dollars are missing.”
The City Journal’s report criticized Minnesota’s Medicaid Housing Stabilization Services program as a potential model for facilitating fraud. It detailed how vast sums were funneled through informal money transfer networks known as ‘hawalas,’ which have connections to Al-Qaeda-linked groups.
Glenn Kerns, a retired detective with extensive experience on federal terrorism task forces, revealed that these Somali networks operate sophisticated financial systems from Seattle to Minneapolis. He noted that one such network transferred $20 million abroad within just one year.
This investigation has led Acting U.S. Attorney Joe Thompson to announce charges against eight individuals involved in what he described as a “massive fraud” related to welfare programs. He expressed concern over ongoing schemes draining resources intended for those genuinely in need.
