As Tampon Tim Panics, Insiders Accuse Him of Ignoring Fraud While Millions Flow to Terror

A group of over 400 Minnesota Department of Human Services employees has turned the spotlight on Governor Tim Walz, charging that his administration turned a blind eye to rampant fraud draining the state’s coffers. In a blunt statement on X, the workers declared, “We let Tim Walz know of fraud early on, hoping for a partnership in stopping fraud but no, we got the opposite response. Tim Walz systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports.”

They didn’t stop there, adding that Walz is “100% responsible for massive fraud in Minnesota.”

These aren’t isolated gripes from disgruntled staff. The accusations come as federal prosecutors peel back layers of schemes that have siphoned more than $1 billion from programs meant to feed kids, house the homeless, and support families with autistic children. At the heart of it: fake companies set up by individuals in the state’s Somali community, billing for services that never happened.

The flagship case, Feeding Our Future, alone involved $250 million in federal child nutrition funds funneled through sham nonprofits during the pandemic. Last week, prosecutors charged the 78th defendant in that mess, with over 50 already convicted.

But the rot goes deeper. Housing Stabilization Services, a program that ballooned from a $2.6 million budget to $104 million last year—and is on track to top $120 million in 2025—became a magnet for ghost billing. Six of the eight federally charged suspects so far hail from the Somali community, according to the U.S. Attorney’s Office. Then there’s the autism therapy fraud: Providers exploded from 41 to 328 in recent years, many targeting Somali families in Minneapolis by falsely diagnosing kids to unlock Medicaid dollars. One case netted $14 million in bogus claims.

What makes this more than just theft? Reports from federal counterterrorism sources point to stolen funds wiring back to Somalia via informal hawala networks—clan-based money transfers that skirt banks. And some of that cash, investigators say, landed with Al-Shabaab, the al-Qaeda affiliate terrorizing East Africa.

“The largest funder of Al-Shabaab is the Minnesota taxpayer,” one source told City Journal bluntly. No terrorism charges have stuck yet, but the web of 28 fraud scandals since Walz took office in 2019 raises questions about how much state oversight was willfully absent.

Walz’s defenders point to new safeguards he’s rolled out, like an executive order last month beefing up fraud detection. At a press conference, he insisted, “If you’re committing fraud, no matter where you come from, what you look like, what you believe, you are going to go to jail.”

He called the schemes something that “undermines trust in government” and “undermines programs that are absolutely critical in improving quality of life.” His office has welcomed a federal probe pushed by GOP lawmakers, including Reps. Tom Emmer and Michelle Fischbach, who fired off letters demanding answers on the Somalia links.

Still, the employees’ fire isn’t cooling. They claim Walz neutered the Office of the Legislative Auditor, letting agencies brush off audit red flags. “In addition to retaliating against whistleblower[s], Tim Walz disempowered the Office of the Legislative Auditor, allowing agencies to disregard their audit findings and guidance.” One insider even alleged those pandemic relief funds got funneled into cushy jobs for Walz’s inner circle, masking deficits as surpluses.

President Donald Trump hasn’t held back, blasting Minnesota as “a hub of fraudulent money laundering activity” and vowing to deport the culprits “back to where they came from.” He followed through by yanking Temporary Protected Status for about 700 Somali nationals in the state, a move that sparked protests in Minneapolis.

Somali leaders like Jaylani Hussein of Minneapolis Care called it a “political act” aimed at firing up conservatives, while others in the community worry the bad apples are tainting everyone. The New York Times noted how the scandal has cracked open rifts, with critics saying Walz’s team dragged feet to avoid ruffling feathers in a group with rising clout—think Rep. Ilhan Omar, whose allies lobbied for the very programs that went bust.

This isn’t abstract policy failure; it’s families scraping by while their taxes bankroll overseas chaos. At least 28 schemes have popped up under Walz, from child nutrition to elder care, all exploiting a safety net stretched thin by high taxes and loose rules.

Republicans eyeing the 2026 governor’s race smell blood, but for everyday Minnesotans, the real sting is watching hard-earned money vanish into thin air—or worse. If the insiders are right, the governor’s housecleaning came years too late. Time will tell if the feds can untangle the rest before more dollars disappear.

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See new posts Conversation Minnesota Department of Human Service Employees @Minnesota_DHS Tim Walz is 100% responsible for massive fraud in Minnesota. We let Tim Walz know of fraud early on, hoping for a partnership in stopping fraud but no, we got the opposite response. Tim Walz systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports. Instead of partnership, we got the full weight of retaliation by Tim Walz, certain DFL members and an indifferent mainstream media. It’s scary, isolating and left us wondering who we can turn to.

In addition to retaliating against whistleblower, Tim Walz disempowered the Office of the Legislative Auditor, allowing agencies to disregard their audit findings and guidance. Media and politicians supporting Tim Walz or the DFL-agenda attacked whistleblowers who were trying to raise red flags on fraudulent activities.

This is a cascade of systemic failures leading up to Tim Walz. Agency leaders appointed by Tim Walz willfully disregarded rules and laws to keep fraud reports quiet - even to the extent of threatening families of whistleblowers. These same leaders are not qualified for their jobs, instead getting leadership jobs via Tim Walz’s friendship so state government were left floundering. DFL lawmakers refused to acknowledge fraud and deflected any serious conversation to stop fraud. Biased mainstream media such as WCCO and MPR showed absolutely no interest in covering fraud happening in our own state. Programs, especially in behavioral health and disability services were built without any guardrails against fraud, all in an attempt to extract more funding from legislature and the federal government.

As staff, we firsthand witnessed and observed fraud happening yet we were shutdown, reassigned and told to keep quiet. Sometimes more. Leadership did not want to appear to discriminate against certain communities and were unwilling to take action, such as stopping fraud, that would have an adverse impact on their image. To date, no single agency leader has been held responsible for their role in fraud whether it’s Shireen Gandhi, Jess Geil, Jodi Harpstead, Natasha Merz, Eric Grumdahl or others.

It is a structure created and maintained by Tim Walz who has created an environment of inter-related agencies and institutions including the media - that help foster fraud through retaliation and turning a blind eye in exchange for political gain in the form of high power agency leadership jobs or other perks.

Fundamentally, Tim Walz is dishonest, lacks ethics and integrity, has poor leadership abilities, and has never taken any accountability for his role in fraud. Instead, Tim Walz deflects by blaming national politics for his own failings and distracts the public with inveterate lying. These lies include his reference of a budget surplus under his tenure. Fact is, Minnesota never had a surplus, we had been given federal ARPA funds that were conflated as surplus money otherwise, we’d be in a deficit. And those ARPA funds, which were meant to be temporary funds were used to create more leadership positions for Tim Walz “buddies.”

As such, we can’t fight fraud in Minnesota alone hence why we’re appealing to the federal levels of government. We need all the help we can get as Tim Walz’s agency leaders have upped their brazen approach in covering up their knowledge of fraud.

We are grateful to numerous solid politicians (esp the Fraud Committee) and media outlets who are trying to halt fraud. We are also grateful to other whistleblowers who are bravely stepping up.

Thank You NY Times for bringing the plight of Minnesota to the national stage.

@nytimes

Widespread fraud within Minnesota’s social services system, was perpetrated by Somalis,
leading to a political controversy against Governor Tim Walz’s nondescript administration.

The situation involves Significant Somali Fraud: Hundreds of millions of tax dollars (an estimated one billion dollars across various tax-supported programs) were stolen from state programs, most notably the federally financed “Feeding Our Future” child nutrition welfare scheme, as well as tax dollars Somalis stole from Housing Stabilization Services.

Somali Perpetrator are the individuals charged and convicted in connection with the fraud have been primarily of Somali descent.

The issue has become a flashpoint in national politics. Critics, including President Donald Trump criticizing Walz’s tepid leadership wrt Minnesota’s tax-financed social programs. The state was wide-open to Somali fraud due to its bleeding heart “tolerant” and “open” system.......protecting Democrat Somali voters.

Terrorism Allegations surfaced that some of the stolen tax funds were funneled to the al-Shabaab Somali terrorist group....... in Somalia....... which has increased the political and national security dimensions of the issue. Federal investigations have been requested into these claims.

Walz’s Weak Actions and Non-Defense of white taxpayers: Governor Walz’s administration has belatedly taken a more aggressive approach to the fraud by shutting down programs deemed susceptible to abuse and directing the Department of Human Services to increase oversight.

Predictably Walz and other Democratic leaders have dismissed the broad attacks from political opponents as attempts to scapegoat the Somali community of crooked Democrat voters.

Trump’s Policy Change: In late November 2025, President Trump terminated the Temporary Protected Status (TPS) program for Somalis, specifically mentioning Minnesota as a “hub of fraudulent money laundering activity,” a move criticized as legally problematic and driven by political motives.

This affected a relatively small number of people, as most Somalis in Minnesota are U.S. citizens or permanent residents.

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