At a Glance
- Federal agents surge in Minnesota after allegations of up to $100 million fraud by Somali-run day-care centers.
- DHS Secretary Kristi Noem and FBI Director Kash Patel announced expanded investigations.
- Minnesota’s past Medicaid fraud cases involve 78 defendants, 57 convictions, most of Somali descent.
Why it matters: The crackdown could reshape how federal aid is monitored and impact the state’s large Somali community.
A wave of federal officers is now in Minnesota after a right-wing influencer claimed that day-care centers operated by Somali residents had committed up to $100 million in fraud. The announcement comes amid a long-standing federal investigation into Medicaid and other program fraud that has already led to dozens of charges and convictions, most of Somali descent.
Federal Surge in Minnesota
DHS Secretary Kristi Noem and FBI Director Kash Patel announced this week a ramp-up of federal operations in Minnesota after the influencer’s claims. State regulators, led by commissioner Tikki Brown, said they were taking the allegations seriously.
Past Fraud Cases
Minnesota has long been in the spotlight for Medicaid fraud, including a $300 million pandemic-era scam involving the nonprofit Feeding Our Future.
In 2022, 47 people were charged; the count has risen to 78, with 57 convictions, most of Somali descent.
- 78 defendants, 57 convicted
- 82 of 92 defendants are Somali Americans
Alleged Losses
Prosecutor Joe Thompson estimates total losses from all fraud cases could exceed $1 billion, while a federal prosecutor earlier this month alleged that half or more of the roughly $18 billion in federal funds supporting 14 Minnesota programs since 2018 may have been stolen.
| Metric | 2022 | Ongoing |
|---|---|---|
| Charged | 47 | 78 |
| Convicted | – | 57 |
| Somali defendants | – | 82 of 92 |
These figures illustrate the scale of the investigations and the potential impact on state and federal funding.
Community Impact
The Minnesota Somali community, the largest in the U.S., accounts for 84,000 of the state’s 260,000 Somali residents, most of whom are U.S. citizens. Trump’s administration has targeted this group, labeling them “garbage” and sparking criticism from Democratic officials.
- 84,000 Somalis in MN, 260,000 nationwide
Political Reactions
Governor Tim Walz has vowed to stop fraud and work with federal partners, while Democratic Representative Ilhan Omar urged that the actions of a few should not define an entire community.
Key Takeaways
- Minnesota’s federal investigations now focus on up to $100 million in alleged day-care fraud.
- Past Medicaid fraud cases involve 78 defendants and 57 convictions, most of Somali descent.
- Alleged losses could exceed $1 billion, with half of $18 billion in federal funds potentially stolen.
The federal crackdown underscores the seriousness of program fraud and its far-reaching effects on Minnesota’s communities.
