The scale of fraudulent billing within Minnesota's Medicaid programs could potentially reach a staggering $9 billion, as revealed by Assistant United States Attorney Joe Thompson on December 18.
According to Conservative Daily News, FBI Director Kash Patel disclosed that the agency had already allocated additional resources to address the issue, a move made prior to a viral 42-minute video by independent journalist Nick Shirley.
This video, which circulated widely on Friday, documented Shirley's visits to various day care centers. Thompson characterized the situation as "industrial-scale fraud," as reported by CBS News Minnesota. "When I say significant amount, Im talking on the order of half or more, but well see," Thompson stated. He further noted, "When I look at the claims data and the providers, I see more red flags than I see legitimate providers."
The economic context adds another layer to the issue, with Somalia's GDP recorded at $11.97 billion in 2024, according to the country's Bureau of National Statistics. Whistleblowers in Maine and Ohio have also reported similar fraudulent activities allegedly orchestrated by Somali scammers.
Previously, United States Immigration and Customs Enforcement (ICE) intensified operations in the Minneapolis area, targeting illegal immigrants from Somalia following reports of at least $1 billion in fraud. The Treasury Department launched an investigation into allegations that some of the embezzled funds were funneled to the radical Islamic terrorist group Al-Shabaab.
In his viral video, Shirley attempted to visit several Somali-run day care centers that had reportedly received state funds, often finding no children present. Thompson emphasized the gravity of the situation, stating, "What we see in Minnesota is not a handful of bad actors committing crimes.
Its staggering, industrial-scale fraud." The controversy has also embroiled Democratic Minnesota Governor Tim Walz, who faced accusations from state employees in November of "systemic" retaliation against whistleblowers who exposed the fraud schemes. Walz has since criticized President Donald Trump for the administration's handling of the reported fraud.
In response to the allegations, President Trump announced plans to terminate Temporary Protected Status for Somalis in Minnesota. He also expressed concern over the impact of refugee influxes, stating they had "destroyed our country."
The unfolding situation in Minnesota underscores the need for vigilant oversight and accountability in government programs to safeguard taxpayer dollars and maintain public trust.
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