MINNEAPOLIS (AP) 鈥� Federal Homeland Security officials were conducting a fraud investigation on Monday in Minneapolis, Department of Homeland Security Secretary Kristi Noem said.
The action comes after years of investigation that began with the $300 million scheme at the nonprofit for which 57 defendants in Minnesota have been convicted. Prosecutors said the organization was at the center of the country鈥檚 largest scam, when defendants exploited a state-run, federally funded program intended to provide food for children.
A earlier in December that half or more of the roughly $18 billion in federal funds that supported 14 programs in Minnesota since 2018 . Most of the defendants are Somali Americans, they said.
Minnesota Gov. Tim Walz said then that fraud will not be tolerated and that his administration 鈥渨ill continue to work with federal partners to ensure fraud is stopped and fraudsters are caught.鈥�
Noem on Monday posted a video on the social platform X showing DHS officers going into an unidentified business and questioning the person working behind the counter. Noem said that officers were 鈥渃onducting a massive investigation on childcare and other rampant fraud.”
鈥淭he American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found,鈥� U.S. Immigration and Custom Enforcement posted.
The action comes a day after FBI Director Kash Patel said on X that the agency had 鈥渟urged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs.鈥�
Patel said that previous fraud arrests in Minnesota were 鈥渏ust the tip of a very large iceberg.”
President Donald Trump has criticized Walz鈥檚 administration over the to date.
In recent weeks, between state and federal enforcement in the area as the Trump administration鈥檚 immigration focused on the in the Minneapolis-St. Paul area, which is the largest in the country.
Among those running schemes to get funds for child nutrition, housing services and autism programs, 82 of the 92 defendants are Somali Americans, according to the U.S. Attorney鈥檚 Office for Minnesota.
Walz spokesperson Claire Lancaster said that the governor has worked for years to 鈥渃rack down on fraud鈥� and was seeking more authority from the Legislature to take aggressive action. Walz has supported criminal prosecutions and taken a number of other steps, including strengthening oversight and hiring an outside firm to audit payments to high-risk programs, Lancaster said.
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