Senior White House officials have declared that Somali refugees in Minnesota have perpetrated the 'biggest theft of taxpayer dollars in US history', alleging that local Democratic officials were 'fully complicit' in the scheme. The explosive claims were made on Friday night as federal authorities detailed a massive fraud operation.
The Scale of the Alleged Fraud
This week, federal authorities announced that at least 86 individuals, predominantly from small Somali communities in Minnesota, are accused of stealing more than $1 billion in public funds. The money was siphoned from programmes designed to feed children, assist the homeless, and provide autism therapy.
The suspects allegedly operated companies that billed Minnesota state officials for millions of dollars in social services that were never actually delivered across three separate fraud schemes. It has since emerged that Representative Ilhan Omar and Minnesota Governor Tim Walz had connections with at least some of the charged individuals.
Political Connections and Ongoing Investigations
US Homeland Security Advisor Stephen Miller stated authorities 'believe the state government is fully complicit in this scheme'. He warned that the evidence already collected points to 'the single greatest theft of taxpayer dollars through welfare fraud in American history'.
Miller told Fox News that investigators have 'only scratched the very top of the surface'. The Trump administration is probing whether fraudulently obtained millions were funnelled to terrorist organisations, including Somalia-based Al-Shabaab. He also noted that figures showing 75% of Minnesota's Somali population on welfare likely represent a significant undercount of the financial burden.
The case gained further traction as Immigration and Customs Enforcement took Somali refugee Abdul Dahir Ibrahim into custody. Ibrahim, who posted social media photos with Walz, Omar, and former Minneapolis mayoral candidate Omar Fateh, has a prior conviction in Canada for asylum and welfare fraud.
Key Figures and Convictions
Authorities have secured a conviction against 33-year-old Salim Ahmed Said, owner of the Safari Restaurant where Ilhan Omar held her 2018 victory party. Prosecutors say Said pocketed $5 million by falsely claiming to serve tens of thousands of meals to low-income children during the pandemic via the nonprofit Feeding Our Future, receiving over $16 million for 'phantom meals'.
Additionally, Omar campaign staffer Guhaad Hashi Said pleaded guilty in August 2025 to running the fake food site Advance Youth Athletic Development and pocketing $3.2 million. He worked on Omar's 2018 and 2020 campaigns. The congresswoman received $7,400 in donations from now-convicted fraudsters, which she returned when the scandal broke in 2022.
Political Fallout and Defence
Representative Omar has maintained she was completely unaware of the illegal activity and faces no accusations of wrongdoing. Governor Tim Walz has defended his administration's actions, stating it erred on the side of generosity during the pandemic to get money out quickly. 'The programs are set up to move the money to people,' Walz told The Times, adding that criminals found the loopholes.
Walz, seeking a third term, has created a new anti-fraud task force and plans to use AI tools to detect suspicious transactions. However, President Donald Trump has derided Walz for allowing Minnesota to become a 'hub of fraudulent money laundering activity', suggesting perpetrators be 'sent back to where they came from'.
Homeland Security Secretary Kristi Noem criticised the governor at a Cabinet meeting, stating that an investigation found half of certain visas and programmes were fraudulent, implying Walz was either 'an idiot or he did it on purpose'.
Critics argue a key reason the fraud continued was a reluctance from civil servants to investigate due to the perpetrators' race and fear of alienating the Somali community. The Minnesota Department of Education faced threats of racism lawsuits from Feeding Our Future if it did not fast-track approvals for minority-owned businesses, leading to months of continued reimbursements despite red flags.
