Minnesota, a state known for its picturesque landscapes and friendly locals, has recently been thrust into the spotlight for a less than flattering reason.
The state has become a hotbed for fraudulent activities, with a significant number of these cases linked to the Somali community. The Trump administration, in its quest to uphold law and order, has taken a keen interest in these developments, scrutinizing the extent of the corruption under the leadership of Democratic-Farmer-Labor Governor Tim Walz.
According to The Blaze, the fraudulent activities have been particularly rampant in relation to the coronavirus pandemic relief funding. However, the issue extends beyond this, with Education Secretary Linda McMahon recently criticizing Governor Walz for student aid fraud in Minnesota.
In a strongly worded letter, she called for his resignation, stating, "Minnesota's political elite has turned a blind eye and even helped facilitate the laundering of money."
McMahon's letter detailed how the U.S. Department of Education discovered fraudulent college applicants, particularly in Minnesota, exploiting the federal postsecondary education system. These individuals, referred to as "ghost students," were either not ID-verified, did not reside in the United States, or simply did not exist. McMahon revealed that 1,834 of these ghost students had received $12.5 million in taxpayer-funded grants and loans in Walz's state.
The Education Department identified Riverland Community College and Century College in White Bear Lake as two of the institutions affected by the fraud scheme. Reports from the Rochester Post Bulletin and a history instructor at Century College further highlighted the extent of the fraudulent activities. The latter discovered that 15% of his students were essentially an organized crime ring.
Minnesota State College Southeast also fell victim to the scheme, with a significant increase in its spring enrollment numbers attributed to 84 ghost students. These ghost students, whether local or international, would engage remotely, doing the bare minimum of classwork until financial aid funds were disbursed. Once they received their funds, they would disappear.
McMahon explained the modus operandi of these fraudsters, stating, "They collected checks from the federal government, shared a small portion of the money with the college, and pocketed the rest without attending the college at all." She added that the new fraud prevention system has blocked more than $1 billion in attempted financial aid theft by fraudsters, including coordinated international fraud rings and AI bots pretending to be students.
The Education Secretary did not mince words in her criticism of Governor Walz, accusing him of a "careless lack of oversight and abuse of the welfare system." She suggested that his inaction has attracted fraudsters from around the world, particularly from Somalia, to establish a criminal stronghold in the United States. McMahon accused Walz of benefiting from the fraudulent activities and called for his resignation.
Republican Majority Whip Tom Emmer echoed McMahon's sentiments, describing Walz's failures as "catastrophic" and calling for him to take accountability and make way for effective leadership.
Despite the mounting criticism, Walz intends to seek a third term next year. However, his prospects seem uncertain, with a recent KSTP-TV/SurveyUSA poll indicating that 69% of registered voters believe he needs to do more to curb fraud in Minnesota. His disapproval rating stands at 48%.
In a recent press conference, Walz acknowledged the fraud issue, stating, "Fraud happened. We need to take accountability ultimately me." He added, "I take responsibility for everything."
This controversy comes on the heels of an announcement by Small Business Administration Secretary Kelly Loeffler of an investigation into Somali organizations implicated in the $1 billion Minnesota COVID fraud scandal, particularly those who received SBA PPP loans. As the situation unfolds, the people of Minnesota and the nation await decisive action to curb the rampant fraud and restore faith in the state's leadership.
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