Episode 920: Minnesota’s Billion-Dollar Fraud Scheme

Newt talks with Ryan Thorpe, investigative reporter for the City Journal about his article, co-authored with Christopher Rufo, “The Largest Funder of Al-Shabaab Is the Minnesota Taxpayer.” Thorpe and Rufo report on a billion-dollar fraud scheme in Minnesota, primarily involving social service programs. The fraud was orchestrated by a nonprofit, Feeding Our Future, which falsely billed the state for feeding children during the COVID-19 pandemic, while the funds were misappropriated for luxury purchases and real estate. Additionally, the Housing Stabilization Services and autism therapy programs were exploited, with fraudulent claims and kickbacks, leading to a near billion-dollar theft. Thorpe highlights the concentration of fraud within the Somali community and the lack of media coverage and political will to address the issue. The fraud has national security implications, as some funds were allegedly funneled to Al-Shabaab through informal money transfer networks. Their discussion underscores the systemic issues in government oversight and the need for policy changes to prevent such fraud. They also discuss the political influence of the Somali community in Minnesota and the challenges faced by whistleblowers within the state government.

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