Every American understands the implications of defrauding the taxpayer. The vast majority of people pay taxes – and complain bitterly about doing so, especially income and property taxes. To learn that there are massive fraud networks operating across America that are syphoning off taxpayer dollars (especially to recently-arrived people in America, many of whom are illegal aliens) is particularly grating, as many people are themselves are living paycheck to paycheck and barely getting by.
Minnesota has been the epicenter of recent revelations, with fraud estimates exceeding $9 billion across multiple programs, primarily involving Somali-led nonprofits and affiliates. The scandals gained traction in late 2025 through viral videos by journalist Nick Shirley exposing empty daycares and whistleblower reports. Federal prosecutors have charged dozens, describing it as brazen and systemic, often attracting out-of-state scammers. Republicans blame lax oversight under Gov. Tim Walz, while Democrat-media complex critics argue investigations unfairly target immigrant communities even though they themselves have conducted no real investigations into the fraud (!).
MINNESOTA
Daycare center fraud involves billing for non-existent children or services at Somali-run centers. Shirley’s videos showed luxury homes listed as daycares with no activity, yet receiving millions in subsidies. Medicaid and disability services scammers (including for autism and home healthcare services) billed taxpayers for unprovided services like autism therapy, home health aides, and disability support, involving family members paid as caregivers for fictitious needs.
And child nutrition services fraud (largely through the nonprofit “Feeding Our Future”) claimed to feed children but pocketed taxpayers funds for luxury items and overseas money transfers. Regarding the last point, some of these fraudulently obtained funds allegedly were sent abroad or to Somali terrorist groups like al-Shabaab.
Here is a tabular summary.
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MAINE
Allegations in Maine mirror Minnesota’s, with whistleblowers claiming Somali-led providers bilked millions from Medicaid. Medicaid (MaineCare) investigators uncovered fraudulent claims for interpreting and community services, as well as massive overbilling for unprovided care.
Scrutiny intensified in December 2025 after Minnesota links surfaced, prompting comparisons to a “potential financial crisis.” Democrat-media defenders have tried to excuse it all as anti-immigrant bias, but audits show improper billing (i.e., blatant fraud).
Here is a tabular summary.
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OHIO
Revelations of fraud in Ohio surged in late December 2025 after Minnesota’s exposure, with viral videos and whistleblowers alleging similar schemes in Columbus. A primary focus has been on Somali communities exploiting loopholes, but other scammers are likely to be uncovered as investigations and audits continue.
Daycare center fraud investigations exposed empty facilities receiving public funds and inflated enrollments similar to Minnesota. Medicaid fraud (including home healthcare services) that has been uncovered includes falsified claims, family members paid as aides for non-existent needs, and doctor kickbacks with fraud individualized to up to $60K/year per person.
Some critics say police may be involved in the fraud schemes, but Gov. DeWine (R) claims safeguards like attendance-based payments that are in place prevent that from happening.
Here is a tabular summary.
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CALIFORNIA
California is the “big enchilada” when it comes to fraud, as the fraud potential is in the hundreds of billions of dollars. With complete Democrat control over state government and state finances, as well as many of the largest cities, the investigations by the weakened Republican Party and independent operators are just getting started. That said, A 92-page report from the California State Auditor (titled “2025-601 State High-Risk Audit Program,” released in mid-to-late December 2025) has gained attention in independent media and on X (formerly Twitter) for highlighting systemic issues of fraud, waste, and mismanagement across multiple state programs under Gov. Gavin Newsom.
The report places eight agencies on a high-risk list and details significant losses or unaccounted funds, though it focuses more on inefficiencies, poor tracking, and program vulnerabilities rather than specific criminal fraud cases like those in Minnesota. The program categories involved in the fraud include homelessness initiatives (billions spent without clear documentation of results), SNAP/CalFresh (high error rates and fraud potential due to weak controls), and COVID relief programs (widespread improper payments), as well as broader high-risk areas like unemployment insurance and other welfare/human services.
California’s issues appear to be broader and systemic as compared to the other states (e.g., Medi-Cal is the nation’s largest Medicaid program, however, investigations into individual fraud (e.g., via the Division of Medi-Cal Fraud and Elder Abuse) continue separately.
Here is a tabular summary.
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OTHER STATES
Similar patterns of fraud have been reported in Washington, Pennsylvania, and Mississippi, with national fraud rising 242% since 2020 (think “federal omnibus spending bills” that hid the fraud!). SNAP (food stamps) fraud cost $102M+ while a 2025 healthcare takedown charged 324 defendants for $14.6B losses (fraud).
CONCLUDING THOUGHTS
It is one thing to complain about the shocking – and pervasive! – fraud; it is quite another to “do something about it.” The key problem is the incentive to steal that presents itself to the criminal element among us that is aided and abetted by political grifters (politicians), do-gooders, and ne-er-do-wells who together have constructed an edifice of corruption where everyone feasts on the flesh of unsuspecting taxpayers. We have learned that state employees look the other way and actually try to criminally facilitate, excuse, and/or ignore the fraud; state politicians benefit from kickbacks (both donations and fraudulent voting); and the criminals who run the fraud networks laugh all the way to the bank (with some even thinking they are ENTITLED to the fraudulent proceeds!). The fraud has been perfectly set up over decades:
- Propagate (gaslight) the “nation of immigrants” line to convince Americans that we “owe it to the world” to open our borders. Includes demonizing anyone who uses the phrase “illegal alien” to describe the invasion or who supports halting immigration for a generation (as was done previously in American history). Includes gaining control of that corrupt legacy media who facilitate the fraud in every possible way.
- Fraudulently elect politicians (mostly Democrats and their RINO allies) to work in conjunction with UN agencies to implement a network of NGOs and government entities that facilitate the importation of masses of “migrants.” Includes a massive expansion of NGOs created by McCain-Feingold and funded by State Dept apparatchiks.
- Massively expand federal and state welfare programs with no strings attached. Includes perfection of massive omnibus spending bills to hide the theft and fraud, as well as block grant pass-downs to states (especially of the blue variety).
There are NO contrary incentives to winkle out fraudsters and hold them accountable. Inspectors general are toothless. The media hide or downplay any instances of fraud that are discovered. Forensic audits of programs are never done. There is seemingly zero accountability for anyone involved in the fraud except for a few isolated cases that are particularly egregious – which are probably used to convince sleeping Americans that “the government is vigilant about catching fraudsters.” What a joke!
Federal actions to date include USDA threats to withhold SNAP funds from non-cooperative states who refuse to audit and investigate for fraud, as well as some grants having been made for anti-fraud tech. Broader probes by DOGE and HHS are in early stages that aim to audit all programs.
This is not enough!
Here is what needs to be done:
There must be an immediate cessation of federal funds to any state that refuses to conduct forensic audits of all welfare programs, with initial emphasis on those funded all or in part by the federal government.
A complete revamping of federal and state welfare programs must be accomplished forthwith. This would involve reenrollment of all current recipients to ensure only those who qualify under statutes are allowed to participate (i.e., no illegal aliens or dead people). As it will be impossible to completely refresh state-level welfare agencies with conscientious people who are good stewards of taxpayer dollars, each state needs to implement welfare watchdog agencies that are incentivized to catch fraudsters (including state agency personnel) – almost like a bounty system where the fraud investigators receive monetary awards when fraud is uncovered. In addition to these state-run watchdog agencies, strong whistleblower laws need to be implemented (with monetary incentives and protections guaranteed) to provide avenues for individuals to be incentivized to report fraud. Lastly, federal funds should be withheld to all states who refuse to “get tough on fraud.”
It is long past time to get serious on fraud and stop paying attention to the lip-service and virtue-signaling on the issue by the political class (because many benefit directly from it).
Lastly, I am strongly convinced that the real reason why Tim Walz was picked as Kamala Harris’s running mate was because Walz sat on top of the Minnesota fraud empire. That is, after Joe Biden’s self-immolation during the debate with President Trump in 2024, Democrat donations dried up, and the Harris campaign was desperate for cash. What better way to “get well” on the donations front than to tap into the massive taxpayer theft that was ongoing in Minnesota that Walz could facilitate and dispense via a coordinated smurfing operation (read about smurfing here)?
No wonder the Democrat-media complex are doing everything they can to distract from the fraud uncovered in Minnesota and elsewhere. They can’t afford to let the kickbacks to their campaigns dry up!
The end.
This article originally appeared in Stu Cvrk’s Substack. Reprinted here with permission
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