January 3, 2026 • 29 mins
-
Scope of Fraud
- Fraud schemes involve billions of dollars across programs such as childcare assistance, healthcare billing, nutrition programs, and pandemic relief funds.
- A major case cited is the Feeding Our Future scandal, which misappropriated $300 million in COVID-19 relief funds intended for child nutrition.
-
Investigations and Enforcement
- The FBI, led by Director Kash Patel, has surged resources to Minnesota, dismantling a $250 million fraud scheme tied to federal food aid programs.
- 78 indictments and 57 convictions have already occurred, with ongoing investigations expected to uncover more.
- The Department of Homeland Security is also conducting enforcement actions, including potential denaturalization and deportation proceedings for convicted fraudsters.
-
Whistleblower and Media Role
- A 23-year-old independent journalist, Nick Shirley, exposed the scandal through a viral 42-minute video showing empty daycare centers receiving millions in taxpayer funds.
- The video sparked national outrage and raised questions about media negligence in investigating such fraud.
-
Political Reactions
- Prominent figures like JD Vance, Elon Musk, and members of Congress have amplified the story, calling for accountability.
- Political tension is evident, with Democrats accused of ignoring or covering up the fraud, while Republicans push for investigations.
- Governor Tim Walz faces criticism for allegedly downplaying the issue and blaming Republicans.
-
Community and Demographics
- The fraud is reported to be concentrated within Minnesota’s Somali community, though the document stresses that facts are not intended as racial criticism.
- Allegations include links to overseas terrorist organizations, which the Treasury Department is investigating.
-
Broader Implications
- The scandal is symptomatic of systemic corruption, with suggestions that similar fraud may exist in other states.
- Congressional insider trading controversies, citing Ilhan Omar’s reported net worth increase and calls by Senator Mark Kelly to ban stock trading for lawmakers.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Minnesota's Somali fraud scandal has exploded, and now the FBI
Director Cash Ptel is confirming that the FBI has surged
personnel and investigative resources to Minnesota to dismantle the large
scale fraud schemes exploiting federal programs, describing the current events
(00:23):
as just a tip of a very large iceberg. The
new claim is hundreds of millions in fake daycares, your
tax dollars going to these centers, all of this being
exposed by a twenty three year old YouTuber who did
the job that no one in the media was willing
to do. Now, the Bureau says that it has identified
(00:48):
and dismantled a two hundred and fifty million dollar fraud
scheme tied to federal food aid programs, leading to seventy
eight indictments and fifty seven convictions. Caspertel also stated that
some convicted fraudsters are being referred for denaturalization and deportation
(01:11):
proceedings where eligible, signaling serious legal consequences beyond prison sentences,
and the broader scope of the fraud is now being exposed.
Federal prosecutors are now estimating the fraud across multiple programs
in Minnesota alone will total into the billions of dollars,
(01:33):
with part of the spotlight falling on social services, childcare assistance,
healthcare billing, and nutrition programs. In other words, if there
was a government program, it was being abused by the fraudsters.
Now the FBI is continuing, they say, an ongoing investigation
(01:54):
and their expectations for more prosecutions and potential recoveries of
misused tax payer funds. National figures including Elon Musk and
political leaders such as JD Vance and Representative Tom Emmer
have amplified the incredible undercover video that exposed all of this,
pushing for accountability and broader investigations into alleged misuse of
(02:18):
taxpayer funds. And it may not just be Minnesota where
the corruption is. Now we're saying that others are coming
forward and saying it could be happening in other states. Now,
how did we get to this point? Well, an independent journalist,
a hero by the name of Nick Shirley posted a
forty two minute investigative video on social media showing visits
(02:43):
to multiple licensed childcare centers that allegedly received millions and
millions of dollars in public funding, meaning taxpayer dollars but
were empty or inactive, or wouldn't even answer a question
on how he could enroll his son in daycare, including
the Minneapolis Quality Learning Center and one lightly shared scene,
(03:07):
Shirley highlighted that one center received roughly one point nine
million alone in twenty twenty five from the Minnesota Childcare
Assistance Program, despite no children or activity being a parent
at the site during daytime visits. Shirley's video claims that
over one hundred and ten million in questionable payments were
(03:28):
documented in a single day of investigating, and that is
where the video went viral, garnering tens of millions of
views and sparking national outrage, particularly among conservatives and political
figures who share this footage saying it's time to clean house,
which brings us to cash Ptel. Now, when something like
(03:51):
this gets exposed, we're learning very quickly that the Trump
administration is willing to do what others were unwilling to
do in the Biden administration and what Democrats are unwilling
to do on their own in Minnesota. Here's more of
how Fox News covered it earlier.
Speaker 2 (04:08):
And welcome back everybody. FBI director Cash Mattel responding to
a viral video that has raised even more concerns about
Minnesota's massive fraud scandal. The video showing misspelled signs, locked doors,
empty classrooms even at a Minneapolis daycare center. Now the
state allegedly is also given the center millions in funding.
Connor Hansen Live in New York City was the latest
(04:30):
on that for us Hey, Connor.
Speaker 3 (04:31):
Hi Kevin Well. For years now, there have been allegations
of widespread fraud and investigations in Minnesota, but now there's
even more scrutiny following a new video that's gone viral
coming from an independent journalist visiting daycare centers in the
state that are receiving millions, apparently in tax dollars, with
no signs of children there.
Speaker 4 (04:52):
Take a look.
Speaker 5 (04:54):
Can I put my son into daycare here?
Speaker 6 (04:56):
No?
Speaker 5 (04:56):
No, don't. Can I speak to someone?
Speaker 4 (04:59):
No?
Speaker 3 (05:00):
Yeah, I would like to see if I can put
my son Joey here now. Twenty three year old journalist
Nick Shirley visited one business that couldn't even spell its
name correctly, with a sign saying leering center instead of learning.
Some had blackedout windows, and most had no signs of
children there. On a Weekday, the viral video sparking a
strong reaction from Vice President jd Vance, who wrote, politicians
(05:23):
like it because they get power. Welfare cheats like it
because they get rich. But it's a zero sum game
and they're stealing both money and political power from Minnesota's
Earlier this month, Minnesota's assistant US attorney said fraud involving
medicaid services likely reached more than nine billion dollars.
Speaker 5 (05:43):
Fraud is not small, It isn't isolated. The magnitude cannot
be overstated. It's a staggering, industrial scale fraud.
Speaker 3 (05:53):
The Eye director Cash Pattel just posted on x saying
that might just be the tip of the iceberg. Despite
mounting criticism aimed at him from the White House and others.
Governor Tim Walls has blamed Republicans for the lack of
a solution.
Speaker 7 (06:08):
Nobody in the legislature on the Republican side is interested
in solving this. Mike God, it would be the worst
thing in the world for them if this is solved
like we're doing it here early this year, because then
what are they going to run on?
Speaker 3 (06:19):
And we've reached down to Governor Wallace for comment on
that video. No response so far. Cash Battel also warning
that possible denaturalization and deportation proceedings could come from this.
Speaker 1 (06:32):
And this is exactly why the FBI Director Cash Battel
not only came out but recognized that the ongoing fraud
scandal and folding in Minnesota involving these childcare centers, saying
it is a top priority of the FBI. This video
all from a journalist on YouTube, Nick Shirley, going viral
(06:53):
over the weekend because he did what the media refused
to do, which is the second part of this story
that ever, everyone should be asking questions about. How is
it that a twenty something who has a YouTube channel
did more reporting on this fraud than the entire media
conglomerate of the United States of America combined. How is
(07:16):
it that he was able to go and confront employees
at these alleged learning centers in Minnesota receiving millions of
dollars in aid despite showing no signs of operational activity.
How is it that four million dollars of hard earned
tax dollars went to one center where they couldn't even
(07:38):
spell the word learning correctly? And how did the media
not do their job? The FBI Caspertel posted on x
is aware of the recent social media report in Minnesota. However,
even before the public conversation escalated online, the FBI had
(07:58):
surged personnel and to gative resources to Minnesota to dismantle
the large scale fraud schemes exploiting federal programs, fraud that
steals from taxpayers. The FBI director goes on to say,
and Rob's vulnerable children will remain a top FBI priority
in Minnesota and nationwide. Ptel then noted that the FBI
(08:21):
dismantled a two hundred and fifty million dollar fraud scheme
that stole federal food aid meant for vulnerable children during
COVID say the investigation exposed sham vendors, shell companies, and
large scale money laundering tied to the Feeding Our Future network.
The case led to seventy eight indictments and fifty seven convictions.
(08:45):
Defendants included high level and high named individuals, each of
them charged for their roles ranging from wirefraud to money
laundering to conspiracy. Ptel concluded that these schemes quote are
just the tip of the very large ice berg. The
assistant US Attorney, by the way, Joseph Thompson also revealed
(09:07):
earlier this month at half of the eighteen billion in
federal welfare funds which support fourteen Minnesota run programs since
twenty eighteen, have been lost to fraud. Quote, Minnesota has
become a magnet for fraud, so much so that we
have developed a fraud tourism industry, people coming to our
(09:30):
state purely to exploit and defraud its programs. Thompson said,
this is deeply unsettling and a reality that all Minnesotans
should understand. So you go back to the big question,
how is it that one man was able to do
so much good? And how was it that the media
and the Democratic Party did nothing to stop it? Well,
(09:54):
it could be for two reasons. One, the media was
in on it. They knew there was reports of fraud,
and they deliberately chose to look the other way. Why
because much of that money was coming back to support
Democrats who were running for office and who had been elected.
There's also the other question, how much to Governor Waltz,
(10:16):
the former man who could have been one heartbeat away
from the presidency. What did he know and when did
he know it? And how involved was he and why
is he not doing more. You have to remember all
he's saying now is somehow this is the Republican's fault,
even though Democrats are in charge of every aspect of
the state of Minnesota. And he doesn't answer the question,
(10:38):
and he also doesn't seem to be angry at all.
He doesn't seem to care about the fraud, which brings
us back to exactly what Casptel said. Not only is
the FBI aware of the recent social media reports, but
we are dismantling large scale frauds and it's only the
tip of the iceberg. That's why Donald Trump put him
(11:00):
in charge. And one thing's for sure, the President is
honed in on this fraud and gonna do everything he
can to stop it. Now, something that will make you
laugh about this entire scandal is remember the Quality Leering Center.
You know the sign where they couldn't even spell the
word learning correctly. Well, after that sign has gone viral,
(11:22):
they have suddenly fixed a sign and it now reads
the actual word learning. I'm not joking, this is literally
what it says.
Speaker 5 (11:30):
Now.
Speaker 8 (11:31):
JD.
Speaker 1 (11:31):
Vance, the Vice President United States of America, putting out
a tweet saying, quote, what's happening in Minnesota is a
microcosm of the immigration fraud in our system. Politicians like
it because they get power. Welfare cheats like it because
they get rich. But it's a zero sum game and
they're stealing both money and political power from Minnesotans. He
(11:56):
couldn't be any more right on what he's saying, which
brings us to the new headline the Department of Homeland
Security on Tuesday now highlighting what they're referring to is
day two of a massive operation in Minnesota, as federal
agents are intensifying their efforts to crack down on the
widespread Smali initiated fraud targeting the state and federal programs.
(12:20):
The Department of Homeland Security posted a video online showing
agents conducting searches and enforcement actions aimed at individuals that
are suspected of defrauding taxpayers of billions of dollars.
Speaker 7 (12:34):
Now.
Speaker 1 (12:34):
This surge is following the new allegations involving daycare centers
in Minnesota, many that are operated by Somali residents that
are accused of abusing public assistance programs caught redhanded on tape.
Our investigative agents are conducting a massive operation. DHS says
to identify, arrest, and remove criminals who are defrauding the
(12:57):
American people. We will out this rampant fraud that is
plaguing Minnesota, the Department of Homeland Security said in a
post on Acts Now. The announcement comes amid heightened scrutiny
on the state, which has already been under investigation for
years over large scale fraud involving Medicaid, pandemic relief funds,
(13:18):
and the child nutrition programs. Homeland Security Secretary Christy Nome
confirming that Homeland Security Investigation agents are actively operating. Quote,
we are on the ground in Minnesota, in Minneapolis right now,
conducting a massive investigation on childcare and other rampant fraud.
This comes to the FBI director also increasing their operations
(13:41):
on day two, saying federal authorities are focused on dismantling
what they describe as large scale fraud schemes exploiting federal
programs now. The latest push follows reporting by the journalist
Nick Shirley, who again I say, as a hero, who
showed the Somali daycare centers and mini app list committing
as much as one hundred million in fraud in a
(14:02):
single day. Minnesota's most notorious fraud case remains the feeding
our future scandal, but there are real chances now that
that could be in the past and new fraud scandals
could be even more expensive. That fraud scandal was all
related to the COVID nineteen fraud scheme, the largest in
(14:22):
our country's history. That was three hundred million in pandemic
relief funds that were intended to provide food for children.
And guess what the Somalis did. They stole the money. Now,
since twenty twenty two, seventy eight people have been charged,
fifty seven had been convicted or pleted guilty. Federal Prosecutor
Joe Thompson is estimated that total losses from fraud schemes
(14:46):
in Minnesota alone could easily exceed more than a billion dollars,
and earlier this month, the federal prosecutor also led a
half or more of the roughly eighteen billion in federal
funds sent to support seen Minnesota program since twenty eighteen
have been misappropriated. Yes, we're talking about fraud now. James Comer,
(15:09):
from the House Oversight Committee chairman sett He now plans
to subpoena top Minnesota officials, including the governor Waltz to
testify under oath to Congress investigating how the fraud went
undetected for years. I think we all know it wasn't undetected.
They knew about it, they were in on it, and
they knew it was helping them get elected to office,
(15:32):
which brings me back to the accountability aspect of all
of this. There are now real members of Congress that
are taking action, including Senator John Kennedy, a Republican who
represents Louisiana, describing the one billion dollars Somali fraud case
in Minnesota as a clown world on steroids and deeply discussing.
(15:55):
Kennedy made the comments during a Senate for speech when
speaking about the Eat Our Future fraud scandal with prosecutors
uncovering the defrauding of the federal government during the COVID
nineteen pandemic. I want you to listen carefully to what
the Senator had to say in front of all this colleagues,
many of them listening on the floor who actually represent Minnesota.
Speaker 4 (16:19):
It makes me, It makes me want to knee someone
in the groin. It just makes me furious, and I
think the American taxpayers feel the same way. What I'm
about to tell you, mister President, let me apologize in advance,
is deeply disgusting. It's deeply disgusting. I mean, it is
(16:47):
clown World on steroids. And when I first read about this,
mister President, I read it a second time because I
was I experienced slack jawed astonishment. And when I read
it the second time and I realized that it was true,
(17:09):
I just wanted to run away screaming what am I
talking about, mister President. We have discovered the federal federal
prosecutors have discovered that for the last five years, there
has been massive welfare fraud in the great state of Minnesota. Massive,
(17:37):
Over a billion dollars of American taxpayer money has been stolen,
just stolen. They can call it fraud, but a better
term would be stealing. And this fraud has been centered
in the Samodi community in minnesot Now, I'm not here
(18:03):
to criticize the Somali community. I'm here simply to describe
what happened. The Somali community in Minneapolis is about eighty
thousand people. They're centered around Minneapolis. And let me say
(18:25):
it again, I'm not here to detegrate the Somali people.
Or people of Somali ancestry, just because of the actions
of a few. But it is a fact that this
one billion dollars in welfare fraud occurred almost exclusively in
(18:48):
the Somali community in Minnesota and was orchestrated by people
with Somali ancestry. That's a fact. Facts aren't racist. Facts
are facts.
Speaker 1 (19:05):
Facts aren't racists.
Speaker 9 (19:07):
Facts are facts.
Speaker 1 (19:08):
It makes me want to need somebody in the growing
slamming the state leaders and demanding accountability. The American taxpayers,
he said, feel the same way. Freederal prosecutors say that
fifty nine people have been convicted in those schemes so far,
and that more than one billion in taxpayer money has
been stolen in three plots they are investigating. That is
(19:32):
more than Minnesota spends annually to run its Department of Corrections.
Hundreds of millions of dollars are diverted again by several
Somali nationals who took the money they were supposed to
be using literally to feed children, and in fact we're
pocketing for criminal instances. Kennedy saying that this is truly shocking.
(19:57):
It was one hundred and twenty five million meals that
this charity claim they were providing to children that were
not provided at all. So what can we all do
to make sure that this continues to have light put
on it? Share all the information that I'm giving you,
(20:18):
Share it everywhere that you can so that more people
see what the Democrats have been doing and also what
the media has been covering up. The fallout out of
Minnesota is now reaching other states. Is now there's more
accusations in other states that Democrats were allowing illegal immigrants
(20:41):
and not all of them are going to be Somali's
to defraud the system on purpose buying votes. Now, all
of this is happening, and I'm going to go through
some of it in a moment, But there's a new
trend that has just started because of the fallout in Minnesota.
Now Mark Kelly, a Democrat, is coming out randomly calling
(21:04):
for the ban of stock trading for members of Congress.
Why well, there are reports that are out that alam
Omar went from being negative in her net worth when
she got into Congress to just a few years later
being worth upwards of thirty million dollars. How did that happen?
(21:26):
Congresswoman Omar's net worth has increased again up to thirty million,
despite her claiming she isn't a millionaire. According to a
new report, Omar and her husband have a networth between
she's stated in her government forms of six million to
thirty million according to their twenty twenty five disclosure. The
Washington Free Beacon is now reporting this. Disclosures from the
(21:51):
end of twenty twenty three, that is just two years ago,
show the pair had ownership stakes that only add to
the value of just about fifty one thousand dollars. The question, obviously,
is how do you go from having fifty one thousand
dollars in your bank account to two years later on
(22:11):
a fixed salary that everyone knows where it is, it's
about one hundred and change to upwards of almost thirty
million dollars. Now, Omar has denied that she has an
increase in well since being elected to Congress, because apparently
you can just lie now about everything. At one point
she even stated, quote, she's not a millionaire. So let's
(22:32):
go back to Mark Kelly, hardcore liberal Democrat. You know,
the same guy that was in favor of sedition and
advocating for the military members to not take the orders
of the President of the United States of America. He
now as a Democrat, is coming out saying, yeah, maybe
we should ban stock trading for members of Congress like
ohmmr and Nancy Pelosi, whose net wealth is in the
(22:53):
hundreds of millions of dollars.
Speaker 6 (22:55):
Take a listen, hey, folks, let's talk about these New
year resolutions. Never really been that big into them. My
wife Gabby, though, you know, this is something she plans
for every year. But I got one this year that
I think is pretty important. You know, my New Year's
resolution is going to be to finally get stock trading
(23:18):
banned from Congress. Why is it that members of Congress
get to use the information they have from having this
job and trade stocks ridiculous American people don't get that.
Speaker 8 (23:31):
It's not right.
Speaker 6 (23:33):
For that reason, I don't trade stocks. I've got all
my assets in a blind trust here. I'm one of
the few people that do that. But we really need
the band stock trading. It is a problem that has
been going on way too long.
Speaker 1 (23:52):
Why did Mark Kelly decide to come out right now.
I think it's probably because he realizes how much fraud
and corruption in inCider trading is about to be exposed,
and he's trying to get ahead of it. He understands
how corrupt the Democratic Party is, how many members of
Congress around him are going to be exposed just by
(24:15):
what we're witnessing in Minnesota right now, which brings me
back to elam Omar. Omar said, it is categorically false
to call her a millionaire. Her net worth just reachs
up to thirty million, an increase of at least three thousand,
five hundred percent in one year. Much of the squad
(24:35):
member's wealth comes to her husband's winery, they claim, and
his venture capital firm. How does this even happen, Well,
it's pretty simple. It happens because Congress allows it to.
Which brings me to the fight that has just started
between alamo Omar and the Treasury Secretary of Scott Descent.
(24:59):
They're duking it out now over the Minnesota fraud scandal.
What I'm about to play for you is not from
the national news. I want to be clear, they're still
staying away from this story. This is from local news.
Listen carefully to what they say about the back and forth.
Speaker 10 (25:14):
It developments the fraud scandal in Minnesota escalating over the weekend.
Both Treasury Secretary Scott Besant and state Representative Ilhan Omar
publicly speaking out regarding the widespread alleged scheme allegedly orchestrated
by Somali asylum seekers. The National News Test Jeff Harris
joining us and both Beston and Omar they appeared on
(25:35):
Face the Nation Jeff, But the two, of course, as
you can expect, related much different messages to the American people.
Break down what we know.
Speaker 1 (25:42):
So.
Speaker 9 (25:43):
Besson spent much of the interview on his end discussing
the Treasury Department's investigation, which includes whether taxpayer money went
to terrorist organizations in Somalia. Omar, who's part of the
Somali community, responding to those comments, saying it would be
a failure of the FBI if they did in fact happen.
Over the weekend, Treasury Secretary Scott Bessing calling out Minnesota
(26:05):
Representative Ilhan Omar for her response about the allegations of
widespread fraud from the state Somali community, the largest in
the nation and potential link to terrorist organizations.
Speaker 8 (26:16):
Representative Kolmar tried to downplay it, said, oh, it was
very it was very tough to know how this money
should be used. She was gaslighting the American people.
Speaker 9 (26:29):
Meanwhile, Omar pushing back, saying any connection between alleged Somali
fraud and terrorism would fall on the FBI.
Speaker 11 (26:36):
If there was a linkage in that the money that
they had stolen going to terrorism, then that is a
failure of the FBI.
Speaker 9 (26:45):
This fraud investigation dates back to twenty twenty two, when
the Biden administration filed charges in connection to what they
called the largest pandemic fraud in the US. Bessen saying
he was asked last week to investigate whether Minnesota's tax
dollars made its way to terrorist organizations linked to Somalia.
Speaker 8 (27:02):
That money has gone overseas and we are tracking that
both to the Middle East and Somalia.
Speaker 9 (27:09):
Minnesota is currently dealing with multiple fraud scandals totaling over
one billion dollars in stolen taxpayer funds, including nearly three
hundred million from the nonprofit Feeding our Future. Omar's campaign
receiving donations from people charged in that scheme, donations, she says,
have since been returned.
Speaker 11 (27:27):
We obviously had people who were able to donate to
our campaign that were involved. We send that money back now.
Speaker 9 (27:36):
The House Oversight Committee announcing last week it's also opening
an investigation into the fraud in Minnesota Chairman James Comer,
saying whistleblowers were ignored.
Speaker 4 (27:45):
That this fraud was taking place and that both the
Attorney General and the governor of Minnesota turned a blind
eye to it.
Speaker 9 (27:51):
Meanwhile, Republican Senator John Kennedy also weigh in on the
Senate floor last week, calling the fraud case quote a
clown world on steroids.
Speaker 4 (28:00):
It makes me want a niece someone in the groin.
It just makes me furious.
Speaker 9 (28:06):
Now, total of eighty seven people have been charged across
all the main fraud cases here, all but eight being
of Somali descent, with sixty one conviction secured so far.
Amy Bach, founder of Feeding Our Future and the alleged
mastermind of that scheme, was found guilty on all counts
and right now is awaiting sentencing. Reporting for the National
News Desk, I'm Jeff Harris.
Speaker 1 (28:28):
You notice there in that report they talk about how
Omar says oh I returned the money, so apparently everything
should be fine. Well, how did she become a multi millionaire.
She also is dismissing these new allegations as quote right
wing disinformation campaign, saying again, I am not a millionaire.
(28:48):
Then why on your financial disclosures do you value your
net worth up to thirty million dollars in just a year.
This came out of nowhere. How much is you make
less than two hundred thousand dollars a year? You can
do the math on it and decide what you think
about that. And you go back to Mark Kelly calling
(29:09):
to banstock trading for members of Congress, saying this has
gone way too long. Why because he understands that we
are now at the tip of a very large iceberg
that is being investigated, and there are other states where
the same type of fraud is going to be exposed.
Don't forget share this podcast please with your family and
(29:31):
your friends wherever they are, and I will see you
back here tomorrow.
Minnesota's Somali fraud scandal has exploded, and now the FBI
Director Cash Ptel is confirming that the FBI has surged
personnel and investigative resources to Minnesota to dismantle the large
scale fraud schemes exploiting federal programs, describing the current events
(00:23):
as just a tip of a very large iceberg. The
new claim is hundreds of millions in fake daycares, your
tax dollars going to these centers, all of this being
exposed by a twenty three year old YouTuber who did
the job that no one in the media was willing
to do. Now, the Bureau says that it has identified
(00:48):
and dismantled a two hundred and fifty million dollar fraud
scheme tied to federal food aid programs, leading to seventy
eight indictments and fifty seven convictions. Caspertel also stated that
some convicted fraudsters are being referred for denaturalization and deportation
(01:11):
proceedings where eligible, signaling serious legal consequences beyond prison sentences,
and the broader scope of the fraud is now being exposed.
Federal prosecutors are now estimating the fraud across multiple programs
in Minnesota alone will total into the billions of dollars,
(01:33):
with part of the spotlight falling on social services, childcare assistance,
healthcare billing, and nutrition programs. In other words, if there
was a government program, it was being abused by the fraudsters.
Now the FBI is continuing, they say, an ongoing investigation
(01:54):
and their expectations for more prosecutions and potential recoveries of
misused tax payer funds. National figures including Elon Musk and
political leaders such as JD Vance and Representative Tom Emmer
have amplified the incredible undercover video that exposed all of this,
pushing for accountability and broader investigations into alleged misuse of
(02:18):
taxpayer funds. And it may not just be Minnesota where
the corruption is. Now we're saying that others are coming
forward and saying it could be happening in other states. Now,
how did we get to this point? Well, an independent journalist,
a hero by the name of Nick Shirley posted a
forty two minute investigative video on social media showing visits
(02:43):
to multiple licensed childcare centers that allegedly received millions and
millions of dollars in public funding, meaning taxpayer dollars but
were empty or inactive, or wouldn't even answer a question
on how he could enroll his son in daycare, including
the Minneapolis Quality Learning Center and one lightly shared scene,
(03:07):
Shirley highlighted that one center received roughly one point nine
million alone in twenty twenty five from the Minnesota Childcare
Assistance Program, despite no children or activity being a parent
at the site during daytime visits. Shirley's video claims that
over one hundred and ten million in questionable payments were
(03:28):
documented in a single day of investigating, and that is
where the video went viral, garnering tens of millions of
views and sparking national outrage, particularly among conservatives and political
figures who share this footage saying it's time to clean house,
which brings us to cash Ptel. Now, when something like
(03:51):
this gets exposed, we're learning very quickly that the Trump
administration is willing to do what others were unwilling to
do in the Biden administration and what Democrats are unwilling
to do on their own in Minnesota. Here's more of
how Fox News covered it earlier.
Speaker 2 (04:08):
And welcome back everybody. FBI director Cash Mattel responding to
a viral video that has raised even more concerns about
Minnesota's massive fraud scandal. The video showing misspelled signs, locked doors,
empty classrooms even at a Minneapolis daycare center. Now the
state allegedly is also given the center millions in funding.
Connor Hansen Live in New York City was the latest
(04:30):
on that for us Hey, Connor.
Speaker 3 (04:31):
Hi Kevin Well. For years now, there have been allegations
of widespread fraud and investigations in Minnesota, but now there's
even more scrutiny following a new video that's gone viral
coming from an independent journalist visiting daycare centers in the
state that are receiving millions, apparently in tax dollars, with
no signs of children there.
Speaker 4 (04:52):
Take a look.
Speaker 5 (04:54):
Can I put my son into daycare here?
Speaker 6 (04:56):
No?
Speaker 5 (04:56):
No, don't. Can I speak to someone?
Speaker 4 (04:59):
No?
Speaker 3 (05:00):
Yeah, I would like to see if I can put
my son Joey here now. Twenty three year old journalist
Nick Shirley visited one business that couldn't even spell its
name correctly, with a sign saying leering center instead of learning.
Some had blackedout windows, and most had no signs of
children there. On a Weekday, the viral video sparking a
strong reaction from Vice President jd Vance, who wrote, politicians
(05:23):
like it because they get power. Welfare cheats like it
because they get rich. But it's a zero sum game
and they're stealing both money and political power from Minnesota's
Earlier this month, Minnesota's assistant US attorney said fraud involving
medicaid services likely reached more than nine billion dollars.
Speaker 5 (05:43):
Fraud is not small, It isn't isolated. The magnitude cannot
be overstated. It's a staggering, industrial scale fraud.
Speaker 3 (05:53):
The Eye director Cash Pattel just posted on x saying
that might just be the tip of the iceberg. Despite
mounting criticism aimed at him from the White House and others.
Governor Tim Walls has blamed Republicans for the lack of
a solution.
Speaker 7 (06:08):
Nobody in the legislature on the Republican side is interested
in solving this. Mike God, it would be the worst
thing in the world for them if this is solved
like we're doing it here early this year, because then
what are they going to run on?
Speaker 3 (06:19):
And we've reached down to Governor Wallace for comment on
that video. No response so far. Cash Battel also warning
that possible denaturalization and deportation proceedings could come from this.
Speaker 1 (06:32):
And this is exactly why the FBI Director Cash Battel
not only came out but recognized that the ongoing fraud
scandal and folding in Minnesota involving these childcare centers, saying
it is a top priority of the FBI. This video
all from a journalist on YouTube, Nick Shirley, going viral
(06:53):
over the weekend because he did what the media refused
to do, which is the second part of this story
that ever, everyone should be asking questions about. How is
it that a twenty something who has a YouTube channel
did more reporting on this fraud than the entire media
conglomerate of the United States of America combined. How is
(07:16):
it that he was able to go and confront employees
at these alleged learning centers in Minnesota receiving millions of
dollars in aid despite showing no signs of operational activity.
How is it that four million dollars of hard earned
tax dollars went to one center where they couldn't even
(07:38):
spell the word learning correctly? And how did the media
not do their job? The FBI Caspertel posted on x
is aware of the recent social media report in Minnesota. However,
even before the public conversation escalated online, the FBI had
(07:58):
surged personnel and to gative resources to Minnesota to dismantle
the large scale fraud schemes exploiting federal programs, fraud that
steals from taxpayers. The FBI director goes on to say,
and Rob's vulnerable children will remain a top FBI priority
in Minnesota and nationwide. Ptel then noted that the FBI
(08:21):
dismantled a two hundred and fifty million dollar fraud scheme
that stole federal food aid meant for vulnerable children during
COVID say the investigation exposed sham vendors, shell companies, and
large scale money laundering tied to the Feeding Our Future network.
The case led to seventy eight indictments and fifty seven convictions.
(08:45):
Defendants included high level and high named individuals, each of
them charged for their roles ranging from wirefraud to money
laundering to conspiracy. Ptel concluded that these schemes quote are
just the tip of the very large ice berg. The
assistant US Attorney, by the way, Joseph Thompson also revealed
(09:07):
earlier this month at half of the eighteen billion in
federal welfare funds which support fourteen Minnesota run programs since
twenty eighteen, have been lost to fraud. Quote, Minnesota has
become a magnet for fraud, so much so that we
have developed a fraud tourism industry, people coming to our
(09:30):
state purely to exploit and defraud its programs. Thompson said,
this is deeply unsettling and a reality that all Minnesotans
should understand. So you go back to the big question,
how is it that one man was able to do
so much good? And how was it that the media
and the Democratic Party did nothing to stop it? Well,
(09:54):
it could be for two reasons. One, the media was
in on it. They knew there was reports of fraud,
and they deliberately chose to look the other way. Why
because much of that money was coming back to support
Democrats who were running for office and who had been elected.
There's also the other question, how much to Governor Waltz,
(10:16):
the former man who could have been one heartbeat away
from the presidency. What did he know and when did
he know it? And how involved was he and why
is he not doing more. You have to remember all
he's saying now is somehow this is the Republican's fault,
even though Democrats are in charge of every aspect of
the state of Minnesota. And he doesn't answer the question,
(10:38):
and he also doesn't seem to be angry at all.
He doesn't seem to care about the fraud, which brings
us back to exactly what Casptel said. Not only is
the FBI aware of the recent social media reports, but
we are dismantling large scale frauds and it's only the
tip of the iceberg. That's why Donald Trump put him
(11:00):
in charge. And one thing's for sure, the President is
honed in on this fraud and gonna do everything he
can to stop it. Now, something that will make you
laugh about this entire scandal is remember the Quality Leering Center.
You know the sign where they couldn't even spell the
word learning correctly. Well, after that sign has gone viral,
(11:22):
they have suddenly fixed a sign and it now reads
the actual word learning. I'm not joking, this is literally
what it says.
Speaker 5 (11:30):
Now.
Speaker 8 (11:31):
JD.
Speaker 1 (11:31):
Vance, the Vice President United States of America, putting out
a tweet saying, quote, what's happening in Minnesota is a
microcosm of the immigration fraud in our system. Politicians like
it because they get power. Welfare cheats like it because
they get rich. But it's a zero sum game and
they're stealing both money and political power from Minnesotans. He
(11:56):
couldn't be any more right on what he's saying, which
brings us to the new headline the Department of Homeland
Security on Tuesday now highlighting what they're referring to is
day two of a massive operation in Minnesota, as federal
agents are intensifying their efforts to crack down on the
widespread Smali initiated fraud targeting the state and federal programs.
(12:20):
The Department of Homeland Security posted a video online showing
agents conducting searches and enforcement actions aimed at individuals that
are suspected of defrauding taxpayers of billions of dollars.
Speaker 7 (12:34):
Now.
Speaker 1 (12:34):
This surge is following the new allegations involving daycare centers
in Minnesota, many that are operated by Somali residents that
are accused of abusing public assistance programs caught redhanded on tape.
Our investigative agents are conducting a massive operation. DHS says
to identify, arrest, and remove criminals who are defrauding the
(12:57):
American people. We will out this rampant fraud that is
plaguing Minnesota, the Department of Homeland Security said in a
post on Acts Now. The announcement comes amid heightened scrutiny
on the state, which has already been under investigation for
years over large scale fraud involving Medicaid, pandemic relief funds,
(13:18):
and the child nutrition programs. Homeland Security Secretary Christy Nome
confirming that Homeland Security Investigation agents are actively operating. Quote,
we are on the ground in Minnesota, in Minneapolis right now,
conducting a massive investigation on childcare and other rampant fraud.
This comes to the FBI director also increasing their operations
(13:41):
on day two, saying federal authorities are focused on dismantling
what they describe as large scale fraud schemes exploiting federal
programs now. The latest push follows reporting by the journalist
Nick Shirley, who again I say, as a hero, who
showed the Somali daycare centers and mini app list committing
as much as one hundred million in fraud in a
(14:02):
single day. Minnesota's most notorious fraud case remains the feeding
our future scandal, but there are real chances now that
that could be in the past and new fraud scandals
could be even more expensive. That fraud scandal was all
related to the COVID nineteen fraud scheme, the largest in
(14:22):
our country's history. That was three hundred million in pandemic
relief funds that were intended to provide food for children.
And guess what the Somalis did. They stole the money. Now,
since twenty twenty two, seventy eight people have been charged,
fifty seven had been convicted or pleted guilty. Federal Prosecutor
Joe Thompson is estimated that total losses from fraud schemes
(14:46):
in Minnesota alone could easily exceed more than a billion dollars,
and earlier this month, the federal prosecutor also led a
half or more of the roughly eighteen billion in federal
funds sent to support seen Minnesota program since twenty eighteen
have been misappropriated. Yes, we're talking about fraud now. James Comer,
(15:09):
from the House Oversight Committee chairman sett He now plans
to subpoena top Minnesota officials, including the governor Waltz to
testify under oath to Congress investigating how the fraud went
undetected for years. I think we all know it wasn't undetected.
They knew about it, they were in on it, and
they knew it was helping them get elected to office,
(15:32):
which brings me back to the accountability aspect of all
of this. There are now real members of Congress that
are taking action, including Senator John Kennedy, a Republican who
represents Louisiana, describing the one billion dollars Somali fraud case
in Minnesota as a clown world on steroids and deeply discussing.
(15:55):
Kennedy made the comments during a Senate for speech when
speaking about the Eat Our Future fraud scandal with prosecutors
uncovering the defrauding of the federal government during the COVID
nineteen pandemic. I want you to listen carefully to what
the Senator had to say in front of all this colleagues,
many of them listening on the floor who actually represent Minnesota.
Speaker 4 (16:19):
It makes me, It makes me want to knee someone
in the groin. It just makes me furious, and I
think the American taxpayers feel the same way. What I'm
about to tell you, mister President, let me apologize in advance,
is deeply disgusting. It's deeply disgusting. I mean, it is
(16:47):
clown World on steroids. And when I first read about this,
mister President, I read it a second time because I
was I experienced slack jawed astonishment. And when I read
it the second time and I realized that it was true,
(17:09):
I just wanted to run away screaming what am I
talking about, mister President. We have discovered the federal federal
prosecutors have discovered that for the last five years, there
has been massive welfare fraud in the great state of Minnesota. Massive,
(17:37):
Over a billion dollars of American taxpayer money has been stolen,
just stolen. They can call it fraud, but a better
term would be stealing. And this fraud has been centered
in the Samodi community in minnesot Now, I'm not here
(18:03):
to criticize the Somali community. I'm here simply to describe
what happened. The Somali community in Minneapolis is about eighty
thousand people. They're centered around Minneapolis. And let me say
(18:25):
it again, I'm not here to detegrate the Somali people.
Or people of Somali ancestry, just because of the actions
of a few. But it is a fact that this
one billion dollars in welfare fraud occurred almost exclusively in
(18:48):
the Somali community in Minnesota and was orchestrated by people
with Somali ancestry. That's a fact. Facts aren't racist. Facts
are facts.
Speaker 1 (19:05):
Facts aren't racists.
Speaker 9 (19:07):
Facts are facts.
Speaker 1 (19:08):
It makes me want to need somebody in the growing
slamming the state leaders and demanding accountability. The American taxpayers,
he said, feel the same way. Freederal prosecutors say that
fifty nine people have been convicted in those schemes so far,
and that more than one billion in taxpayer money has
been stolen in three plots they are investigating. That is
(19:32):
more than Minnesota spends annually to run its Department of Corrections.
Hundreds of millions of dollars are diverted again by several
Somali nationals who took the money they were supposed to
be using literally to feed children, and in fact we're
pocketing for criminal instances. Kennedy saying that this is truly shocking.
(19:57):
It was one hundred and twenty five million meals that
this charity claim they were providing to children that were
not provided at all. So what can we all do
to make sure that this continues to have light put
on it? Share all the information that I'm giving you,
(20:18):
Share it everywhere that you can so that more people
see what the Democrats have been doing and also what
the media has been covering up. The fallout out of
Minnesota is now reaching other states. Is now there's more
accusations in other states that Democrats were allowing illegal immigrants
(20:41):
and not all of them are going to be Somali's
to defraud the system on purpose buying votes. Now, all
of this is happening, and I'm going to go through
some of it in a moment, But there's a new
trend that has just started because of the fallout in Minnesota.
Now Mark Kelly, a Democrat, is coming out randomly calling
(21:04):
for the ban of stock trading for members of Congress.
Why well, there are reports that are out that alam
Omar went from being negative in her net worth when
she got into Congress to just a few years later
being worth upwards of thirty million dollars. How did that happen?
(21:26):
Congresswoman Omar's net worth has increased again up to thirty million,
despite her claiming she isn't a millionaire. According to a
new report, Omar and her husband have a networth between
she's stated in her government forms of six million to
thirty million according to their twenty twenty five disclosure. The
Washington Free Beacon is now reporting this. Disclosures from the
(21:51):
end of twenty twenty three, that is just two years ago,
show the pair had ownership stakes that only add to
the value of just about fifty one thousand dollars. The question, obviously,
is how do you go from having fifty one thousand
dollars in your bank account to two years later on
(22:11):
a fixed salary that everyone knows where it is, it's
about one hundred and change to upwards of almost thirty
million dollars. Now, Omar has denied that she has an
increase in well since being elected to Congress, because apparently
you can just lie now about everything. At one point
she even stated, quote, she's not a millionaire. So let's
(22:32):
go back to Mark Kelly, hardcore liberal Democrat. You know,
the same guy that was in favor of sedition and
advocating for the military members to not take the orders
of the President of the United States of America. He
now as a Democrat, is coming out saying, yeah, maybe
we should ban stock trading for members of Congress like
ohmmr and Nancy Pelosi, whose net wealth is in the
(22:53):
hundreds of millions of dollars.
Speaker 6 (22:55):
Take a listen, hey, folks, let's talk about these New
year resolutions. Never really been that big into them. My
wife Gabby, though, you know, this is something she plans
for every year. But I got one this year that
I think is pretty important. You know, my New Year's
resolution is going to be to finally get stock trading
(23:18):
banned from Congress. Why is it that members of Congress
get to use the information they have from having this
job and trade stocks ridiculous American people don't get that.
Speaker 8 (23:31):
It's not right.
Speaker 6 (23:33):
For that reason, I don't trade stocks. I've got all
my assets in a blind trust here. I'm one of
the few people that do that. But we really need
the band stock trading. It is a problem that has
been going on way too long.
Speaker 1 (23:52):
Why did Mark Kelly decide to come out right now.
I think it's probably because he realizes how much fraud
and corruption in inCider trading is about to be exposed,
and he's trying to get ahead of it. He understands
how corrupt the Democratic Party is, how many members of
Congress around him are going to be exposed just by
(24:15):
what we're witnessing in Minnesota right now, which brings me
back to elam Omar. Omar said, it is categorically false
to call her a millionaire. Her net worth just reachs
up to thirty million, an increase of at least three thousand,
five hundred percent in one year. Much of the squad
(24:35):
member's wealth comes to her husband's winery, they claim, and
his venture capital firm. How does this even happen, Well,
it's pretty simple. It happens because Congress allows it to.
Which brings me to the fight that has just started
between alamo Omar and the Treasury Secretary of Scott Descent.
(24:59):
They're duking it out now over the Minnesota fraud scandal.
What I'm about to play for you is not from
the national news. I want to be clear, they're still
staying away from this story. This is from local news.
Listen carefully to what they say about the back and forth.
Speaker 10 (25:14):
It developments the fraud scandal in Minnesota escalating over the weekend.
Both Treasury Secretary Scott Besant and state Representative Ilhan Omar
publicly speaking out regarding the widespread alleged scheme allegedly orchestrated
by Somali asylum seekers. The National News Test Jeff Harris
joining us and both Beston and Omar they appeared on
(25:35):
Face the Nation Jeff, But the two, of course, as
you can expect, related much different messages to the American people.
Break down what we know.
Speaker 1 (25:42):
So.
Speaker 9 (25:43):
Besson spent much of the interview on his end discussing
the Treasury Department's investigation, which includes whether taxpayer money went
to terrorist organizations in Somalia. Omar, who's part of the
Somali community, responding to those comments, saying it would be
a failure of the FBI if they did in fact happen.
Over the weekend, Treasury Secretary Scott Bessing calling out Minnesota
(26:05):
Representative Ilhan Omar for her response about the allegations of
widespread fraud from the state Somali community, the largest in
the nation and potential link to terrorist organizations.
Speaker 8 (26:16):
Representative Kolmar tried to downplay it, said, oh, it was
very it was very tough to know how this money
should be used. She was gaslighting the American people.
Speaker 9 (26:29):
Meanwhile, Omar pushing back, saying any connection between alleged Somali
fraud and terrorism would fall on the FBI.
Speaker 11 (26:36):
If there was a linkage in that the money that
they had stolen going to terrorism, then that is a
failure of the FBI.
Speaker 9 (26:45):
This fraud investigation dates back to twenty twenty two, when
the Biden administration filed charges in connection to what they
called the largest pandemic fraud in the US. Bessen saying
he was asked last week to investigate whether Minnesota's tax
dollars made its way to terrorist organizations linked to Somalia.
Speaker 8 (27:02):
That money has gone overseas and we are tracking that
both to the Middle East and Somalia.
Speaker 9 (27:09):
Minnesota is currently dealing with multiple fraud scandals totaling over
one billion dollars in stolen taxpayer funds, including nearly three
hundred million from the nonprofit Feeding our Future. Omar's campaign
receiving donations from people charged in that scheme, donations, she says,
have since been returned.
Speaker 11 (27:27):
We obviously had people who were able to donate to
our campaign that were involved. We send that money back now.
Speaker 9 (27:36):
The House Oversight Committee announcing last week it's also opening
an investigation into the fraud in Minnesota Chairman James Comer,
saying whistleblowers were ignored.
Speaker 4 (27:45):
That this fraud was taking place and that both the
Attorney General and the governor of Minnesota turned a blind
eye to it.
Speaker 9 (27:51):
Meanwhile, Republican Senator John Kennedy also weigh in on the
Senate floor last week, calling the fraud case quote a
clown world on steroids.
Speaker 4 (28:00):
It makes me want a niece someone in the groin.
It just makes me furious.
Speaker 9 (28:06):
Now, total of eighty seven people have been charged across
all the main fraud cases here, all but eight being
of Somali descent, with sixty one conviction secured so far.
Amy Bach, founder of Feeding Our Future and the alleged
mastermind of that scheme, was found guilty on all counts
and right now is awaiting sentencing. Reporting for the National
News Desk, I'm Jeff Harris.
Speaker 1 (28:28):
You notice there in that report they talk about how
Omar says oh I returned the money, so apparently everything
should be fine. Well, how did she become a multi millionaire.
She also is dismissing these new allegations as quote right
wing disinformation campaign, saying again, I am not a millionaire.
(28:48):
Then why on your financial disclosures do you value your
net worth up to thirty million dollars in just a year.
This came out of nowhere. How much is you make
less than two hundred thousand dollars a year? You can
do the math on it and decide what you think
about that. And you go back to Mark Kelly calling
(29:09):
to banstock trading for members of Congress, saying this has
gone way too long. Why because he understands that we
are now at the tip of a very large iceberg
that is being investigated, and there are other states where
the same type of fraud is going to be exposed.
Don't forget share this podcast please with your family and
(29:31):
your friends wherever they are, and I will see you
back here tomorrow.
Host
Ben Ferguson
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