HUD Latest To Join Federal Authorities Investigating $1 Billion Fraud In Minnesota's Somali Community

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In a recent development, the federal Department of Housing and Urban Development (HUD) has teamed up with the U.S. Treasury, U.S. Customs and Immigration, and other federal authorities to probe an alleged colossal fraud scheme within the Somali community in Minnesota.

This scheme is believed to have cost American taxpayers upwards of a billion dollars.

According to WND, a previous investigation revealed that fraud within the Somali immigrant community in Minnesota was siphoning hundreds of millions, potentially billions, of taxpayer dollars. Much of this money was reportedly funneled to Somalia, where it ended up in the hands of al-Shabaab terrorists.

Treasury Secretary Scott Bessent, whose team was already investigating the scandal, recently confirmed that organizations involved in transferring money from the U.S. to Somalia are under scrutiny. The Washington Examiner has now reported that HUD is also joining the investigation.

Federal investigators have been dispatched to Minnesota, particularly to St. Paul and Minneapolis, which host a large community of Somali immigrants. HUD officials have stated that Minnesota is "on notice, that we are taking enforcement and fiscal oversight seriously given the rampant fraud."

The investigation will include a thorough review of funds that have passed through Minnesotas public housing authorities to ensure there is no fraudulent activity in federal housing aid. The Minneapolis Public Housing Authority reportedly spends $108 million annually on housing choice vouchers and public housing, while St. Paul spends $46 million.

The primary scandal revolves around Feeding Our Future, a nonprofit group that allegedly provided millions of meals to children during the pandemic and received payments of $300 million. HUD Secretary Scott Turner has disclosed that the department has slashed funding for Somalis with temporary protected status, a provision that allows illegal immigrants from certain countries to apply for protection from deportation for a certain period.

Online reports have detailed how HUD sent federal investigators to Minneapolis and St. Paul to scrutinize federally funded aid programs following revelations of a $1 billion welfare fraud scheme primarily involving Somali immigrants.

The welfare fraud scandal in Minnesota, centered around Somali immigrants, could potentially be the "greatest financial fraud" in U.S. history, according to some experts. Records indicate that "90% of Somali households with children are on federal welfare. The real number is probably 100% because federal records always undercount," one expert noted.

State employees have accused Gov. Tim Walz, who was part of the Democrats unsuccessful 2024 presidential ticket alongside Kamala Harris, of "systemic" retaliation against whistleblowers who warned of the fraud schemes. The Justice Department is currently prosecuting multiple federal cases related to the scandal, with dozens of cases brought and convictions obtained.

President Donald Trump has criticized Walz for allowing Somali nationals to transform the state into a "hub of fraudulent money laundering activity." Despite the ongoing investigation and criticism, Walz has pledged to "welcome more" Somalis to his state.

A report by City-Journal concluded, "Billions in taxpayer dollars have been stolen during the administration of Governor Tim Walz alone. Democratic state officials, overseeing one of the most generous welfare regimes in the country, are asleep at the switch. And the media, duty-bound by progressive pieties, refuse to connect the dots."

This investigation underscores the need for stringent oversight and accountability in the management of taxpayer funds, particularly in welfare programs. It also highlights the importance of ensuring that immigration policies and practices do not inadvertently facilitate fraudulent activities.

As the investigation continues, it is crucial to remember that the ultimate goal is to protect the interests of American taxpayers and uphold the integrity of our public institutions.