FBI Director Kash Patel on Dec. 28 confirmed that his office had surged resources to Minnesota to investigate claims of fraud exploiting federal services and programs.
“The FBI is aware of recent social media reports in Minnesota,” Patel wrote. “However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs. Fraud that steals from taxpayers and robs vulnerable children will remain a top FBI priority in Minnesota and nationwide.”
The FBI director also said that the recent arrests are “just the tip of a very large iceberg.”
“We will continue to follow the money and protect children, and this investigation very much remains ongoing. Furthermore, many are also being referred to [immigration] officials for possible further denaturalization and deportation proceedings where eligible.”
The fraud scheme, Patel wrote, resulted in the stealing of “federal food aid meant for vulnerable children during COVID” including “sham vendors, shell companies, and large-scale money laundering tied to the Feeding Our Future network.”
“These criminals didn’t just [engage] in historic fraud, but tried to subvert justice as well,” he said.
Patel noted a case in which a defendant and others have been “charged for attempting to bribe a juror with $120,000 in cash.”
“Those responsible pleaded guilty and were sentenced, including a 10-year prison term and nearly $48 million in restitution in related cases,” he said.
Vice President JD Vance called the fraud allegations in the state “a microcosm of the immigration fraud in our system.”
Joe Thompson, first assistant U.S. attorney, told reporters earlier this month that the scale of fraud in Minnesota-run programs is astronomically high. Fraud was found in programs involving services such as child nutrition, housing services, and autism, he said.
“I’m sure everyone is wondering how much of this $18 billion was fraud,” Thompson told reporters. “That’s the $18 billion question.”
In response to the investigations, Walz in October ordered a third-party audit and paused payments to the 14 programs for 90 days. One program has since been shut down entirely. Walz says the state aggressively increased resources for fraud detection and prevention and recently appointed a statewide director of program integrity to oversee those efforts.
Aside from Patel’s statement, the White House has sounded the alarm for fraud among Minnesota’s Somali community. On Thanksgiving, President Donald Trump described the state as “a hub of fraudulent money laundering activity” and noted that he was terminating Temporary Protected Status for Somalis in Minnesota.
