‘Racism weaponised to shield scam’: Witness reveals how Walz tried to cover Minnesota Somali fraud

In the heart of Minnesota, a scandal of epic proportions has quietly been unfolding — one that has left the state reeling and its citizens in shock. What started as a simple case of fraud in a federal child care assistance program has spiraled into one of the most devastating financial crimes in the nation’s history. And now, it seems that the stolen millions may not just be funding lavish lifestyles in the U.S. — they could also be funneled to terrorist organizations halfway across the globe.

This is the story of how a web of corruption, mismanagement, and political cover-ups allowed a massive fraud scheme to flourish right under the noses of Minnesota officials. The shocking revelations continue to emerge, and as the evidence piles up, one thing is certain: those responsible must be held accountable.

The Start of a Scandal: How it All Began

The fraud was first uncovered under the Child Care Assistance Program (CCAP), a federal initiative designed to help low-income families access affordable child care. For years, there were whispers of fraud within the system. But it wasn’t until the Walls administration took charge that the true scale of the deception became apparent. Just months after Tim Walz became governor, the state auditor published two bombshell reports detailing fraudulent activities within CCAP.

These reports highlighted the fraudulent providers who had billed for children who didn’t exist, and the scheme involved millions of taxpayer dollars. Worse still, there were allegations that this money was being funneled out of Minnesota and into Somalia, with some reports suggesting it was being used to fund terrorism. But rather than confronting the issue head-on, Governor Walz’s administration opted to downplay the fraud. Instead of calling it what it was — fraud — they rebranded it as “overpayment” and pushed the matter to an internal committee that would decide whether to pursue reimbursement.

Despite the scale of the fraud, the state’s investigation seemed to grind to a halt. Even more troubling, a special task force set up to investigate child care fraud was shut down by the Department of Human Services (DHS). Whistleblowers and insiders have confirmed that the department was instructed to not engage with law enforcement without prior approval from supervisors. This sudden change in approach raised alarms — why was the investigation being suppressed?

The Meals Act: A Gateway to Massive Fraud

In March 2020, the situation escalated further when Representative Ilhan Omar introduced the Meals Act — a bill that waived the normal eligibility requirements for states participating in the National School Lunch Program. While the legislation was intended to provide food relief during the pandemic, Minnesota quickly exploited the system’s loopholes. State officials allowed organizations like Feeding Our Future and Partners in Quality Care to bill for hundreds of millions of fake meals for non-existent children.

Just one of these organizations, Feeding Our Future, became responsible for the largest COVID fraud scandal in state and national history, billing taxpayers for at least $250 million in fraudulent claims. The scheme grew so large that it spanned multiple Medicaid programs, including services for autism centers, sober homes, and even non-emergency medical transportation. And as investigators dug deeper, they uncovered a web of financial transactions linked to luxury homes, cars, and even overseas real estate.

But that was just the tip of the iceberg.

Where Did the Money Go?

The real question on everyone’s mind is: where did all the stolen money go? Well, it wasn’t just funding lavish lifestyles in Minnesota or across the U.S. In fact, there’s evidence to suggest that taxpayer dollars were being funneled overseas, buying luxury property in Kenya, apartments in Nairobi, and even real estate in Turkey. One particularly shocking revelation is that some of the stolen funds were allegedly linked to terrorist organizations, including al-Shabaab, the Somali-based extremist group.

Whistleblowers have also pointed out that cash was flowing out of the Minneapolis-St. Paul International Airport in record amounts. In 2024 alone, it was estimated that $340 million in cash was leaving the airport — a staggering sum that was 99% higher than other major airports, including Dallas, Atlanta, and JFK. By 2025, the figure was expected to rise to $350 million.

With such enormous sums of money leaving the state, it’s no surprise that Minnesota taxpayers are livid. They have worked hard to fund public services like roads, schools, and healthcare, only to see their money siphoned off by criminals with apparent impunity. But the story doesn’t end there — the scale of the fraud continues to unfold, and the impact on the state’s reputation and finances is profound.

Racism Used as a Shield to Protect Fraudsters

Perhaps the most unsettling element of this scandal is the way accusations of racism have been weaponized to shield those involved. Multiple whistleblowers have come forward to reveal how any attempt to expose the fraud was met with accusations of Islamophobia or racism. Legislators and investigators who questioned the legitimacy of Somali-run daycare centers or nutrition programs were repeatedly labeled as bigots or accused of targeting the Somali community.

“I was stunned to be called a racist,” said one whistleblower who testified before the House Oversight Committee. “This is the same playbook that has been used to protect Minnesota criminals for years. Any time you raise questions about Somali-run programs, you’re called a racist. It’s a tactic to shut down legitimate concerns.”

This tactic has been so effective that some individuals who dared to speak out about the fraud have seen their careers jeopardized, their reputations tarnished, and their credibility attacked. “It’s the same strategy,” said another whistleblower. “Make the conversation about racism, and you stop people from asking questions. It’s a dangerous game, and it’s been working for far too long.”

The Cover-Up and the Cost to Taxpayers

As the fraud continued to spread, it became clear that Minnesota’s leadership had failed its taxpayers. The response from Governor Walz and his administration has been far from adequate. Despite the overwhelming evidence of fraud, no one has been held accountable. Even after the Feeding Our Future scandal was exposed, state agencies allowed the same individuals involved in the fraud to continue receiving public funds through other programs.

To date, 78 individuals have been indicted, and 61 convictions have been secured in the Feeding Our Future case alone. However, many believe this is just the beginning, as more cases are expected to go to trial in the coming months. The estimated total amount of fraud across multiple Medicaid programs is a staggering $9 billion — a figure that is likely to grow as more fraudulent operations are uncovered.

“This is an epidemic of fraud, and it’s only getting worse,” said a member of the fraud prevention committee. “Minnesota’s taxpayers are being fleeced, and our government is doing very little to stop it.”

The Road Ahead: Accountability and Action

Despite the mounting evidence and growing public outcry, there is hope that justice will eventually prevail. Whistleblowers, journalists, and investigators are working tirelessly to expose the fraud and hold those responsible accountable. But they need more support — from both the federal and state governments — to ensure that this kind of misconduct never happens again.

“There are some basic steps we can take to stop the fraud,” said one expert in fraud prevention. “First, we need to change the culture. Fraud flourishes when leaders ignore it and criminals see they can get away with it. Second, we need better internal controls, particularly in Medicaid programs. And finally, we need to ensure that accusations of racism and Islamophobia are not used to deflect scrutiny.”

As Minnesota struggles to recover from the devastating effects of this scandal, one thing is clear: the state must hold those responsible accountable, or else the fraud will continue to siphon money from hardworking taxpayers. The time for action is now, and Minnesotans are demanding answers.

In the coming months, as more indictments and convictions unfold, the public will be watching closely. The outcome of this crisis could determine the future of Minnesota’s political leadership — and whether those in power are willing to face the truth or continue to protect those who have exploited the system.