Money that was supposed to feed vulnerable children during COVID didn’t just “go missing.” It was taken—pulled out of programs meant to keep kids safe and families afloat, and rerouted through fake operations and dirty financial pipelines.
FBI Director Kash Patel said the Bureau had already surged investigators and resources into Minnesota to crack down on these fraud schemes before the story blew up online. He described what they’ve uncovered so far as “just the tip of a very large iceberg,” and said the FBI will keep following the money because the investigation is still active.
And here’s what hurts the most: Patel said the FBI dismantled a $250 million scheme tied to the Feeding Our Future network, accusing it of using sham vendors, shell companies, and large-scale money laundering to steal federal food aid meant for kids. Authorities say the case resulted in 78 indictments and 57 convictions.
In that same statement, Patel publicly named alleged perpetrators—people charged with roles ranging from wire fraud to money laundering and conspiracy, including Abdiwahab Ahmed Mohamud, Ahmed Ali, Hussein Farah, Abdullahe Nur Jesow, Asha Farhan Hassan, Ousman Camara, and Abdirashid Bixi Dool.
He also said Abdimajid Mohamed Nur and others were charged with trying to bribe a juror using $120,000 in cash. Patel said those responsible pleaded guilty and were sentenced, including a 10-year prison term and nearly $48 million in restitution in related cases.
And then came the warning that hit like a punch to the gut: Patel said many involved are being referred to immigration officials for possible denaturalization and deportation proceedings where eligible.
As if that wasn’t enough, the public outrage surged again after a viral video by independent journalist Nick Shirley showing what he claimed were Minnesota childcare and learning centers that looked like non-operational fronts. Watching that kind of footage makes Minnesota taxpayers feel completely played—like we’re working, paying in, trusting the system, and somebody else is cashing out.
Republican lawmakers—including Vice President JD Vance—amplified the outrage and accused Gov. Tim Walz of letting massive theft happen while doing nothing. Walz, speaking earlier, said fraud like this destroys trust in government and damages programs that people depend on, and he warned that anyone committing fraud—no matter who they are—will go to jail.
Shirley later criticized Walz on TV, saying Walz “just wants votes,” and argued the fraud was so obvious “even a kindergartener” could spot it. The allegations described in the story also trace back to 2015, when daycare centers were accused of overcharging Minnesota’s Child Care Assistance Program—another punch to families relying on child care.
The story also points to more recent alleged scams involving Medicaid-funded disability programs, including a housing program meant to help seniors and disabled people find and move into housing. After what authorities called “large-scale fraud,” that program was shut down earlier this year—meaning the people who genuinely needed help were left paying the price for someone else’s greed.
Finally, the piece says President Trump announced last month that he was suspending Temporary Protected Status for Somali immigrants, claiming Minnesota had become a hub of fraudulent money laundering activity.