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Fraud Scandal Involving the Somali Minority in Minnesota
Minnesota, a Midwestern U.S. state with a Somali-American community of about 80,000 people, has witnessed large-scale fraud scandals over the past decade involving welfare and social service programs that, according to federal prosecutors, have cost taxpayers more than $1 billion. Prosecutors say most of the defendants are from Minnesotaās Somali community, while Somali community leaders and Democrats call this āpoliticizationā and blame the scandals on state oversight failures.
š Cases:
š Largest Case: Feeding Our Future ($250ā300 million)
This case, the largest COVID-19āera fraud, involved stealing federal child nutrition funds through the nonprofit Feeding Our Future. Criminals used fake invoices for nonexistent meals, funneling money through shell nonprofits and hawala networks. Seventy-eight people have been charged and 59 convicted; most of the defendants are of Somali descent. Prosecutors say more than 200 fake food sites were created, with only a small fraction of meals being real.
š Medicaid Housing Services Fraud ($302 million)
From 2021 to 2024, the scheme targeted Medicaidās Housing Stabilization Services. Defendants, including people of Somali descent, received state funds for housing services that were never provided. At least eight defendants, including Somali nationals, have been convicted.
š Autism Treatment Fraud ($14 million)
This case involves fake autism diagnoses and bribing parents to enroll children in treatment programs. Several defendants are Somali-American; one conviction worth $7.2 million was overturned in December 2025.
š Political Reactions and Criticism
The scandals became national news after comments by Trump, who called Minnesota a āmoney-laundering hubā and demanded the deportation of those charged. The governor of Minnesota, Tim Walz (who was selected as Kamala Harrisās running mate in the 2024 election), and Democrats rejected these claims, accusing Republicans of ādemonizing immigrants.ā Critics accuse Walz of ignoring whistleblower warnings about the fraud since 2021, and a 2025 poll showed that 56% of Minnesotans believe the state did not do enough.
š Federal Investigations and Security Concerns
The Department of Justice has secured dozens of convictions and is investigating whether some stolen funds were sent abroad (including to terrorist groups such as al-Shabaab). In November 2025, Trump revoked Temporary Protected Status (TPS) for Somali nationals, sparking protests from local leaders. Somali community advocates acknowledge the involvement of some individuals but warn against judging the entire community. These scandalsāat least 28 since 2019āhave increased political and cultural tensions in Minnesota, and the recovery of stolen funds has been slow due to a lack of cooperation from state officials. Federal investigations continue and may result in additional charges.