Taxpayers Betrayed: $9 Billion Stolen on Walz and Ellison’s Watch

Paul Riverbank, 2/11/2026Uncover Minnesota’s $9B welfare fraud scandal—systemic failures, immigrant tensions, and broader national warnings.

Inside the packed chamber, gravity hung in the air. Witnesses took turns sketching out a landscape pocked by fraudulent daycares, bogus clinics, and make-believe food programs—all of them, according to federal prosecutors, part of a labyrinth that may have quietly redirected nearly $9 billion in taxpayer money. These weren’t petty, isolated crimes. Testimony described whole networks—some operating with the sophistication of seasoned multinationals, some even reaching overseas.

Senator Josh Hawley, seldom shy with his criticism, wasn't placated by reassurances. "American taxpayers are getting robbed blind," he charged in a televised exchange that quickly echoed across newsrooms and living rooms alike. He went further, invoking a vision of chaos fanned from outside U.S. borders, with organized rings not just looting funds but possibly stoking unrest.

Questions inevitably turned toward the watchdogs in St. Paul. Minnesota State Senator Mark Koran didn’t hold back, his frustration palpable. He invoked the names of Governor Tim Walz and Attorney General Keith Ellison, suggesting a pattern—at best, neglect; at worst, a blind eye or even active obfuscation, with records allegedly backdated and whistleblowers facing pressure, even personal attacks. Imagine risking your job and reputation by flagging suspicious transactions, only to discover that warnings had been muffled, and sometimes, the messengers themselves targeted.

That risk wasn’t hypothetical. One state employee described enduring coordinated smears for raising alarms as far back as 2019—a reminder that corruption, when entrenched, rarely stops at the ledger.

A particularly sensitive aspect of the investigation centers on Minnesota’s Somali community, which has grown rapidly since the 1990s. With nearly 80,000 Somali Minnesotans today, they represent one of the largest such communities in America. The fact that the majority of indictments trace back to this group has fueled allegations and, for some, suspicions about the broader role of immigrant populations in abuse of social services. The testimony of Simon Hankinson, a former consular official, underscored deep challenges at the intersection of immigration and oversight. "I was lied to many times a day about every aspect of applications," he noted, describing a culture of half-truths that he said sometimes travels with people to their new homes.

It’s a volatile topic. Advocacy groups warn against conflating individuals with criminal behavior. Yet, federal research cited at the hearing painted a sobering picture: over eighty percent of Somali households in the state, it’s claimed, receive some form of welfare. For critics, this became shorthand for what they dubbed the country’s largest modern refugee fraud.

But to conclude this is only a Minnesota crisis would be missing the forest for the trees. Haywood Talcove, heading LexisNexis Risk Solutions, painted broader strokes: criminal syndicates, some with links as distant as East Asia, exploit a patchwork system that’s virtually begging to be scammed. “Organized crime, drug shipments, human trafficking—the same channels used for one can be pivoted for another,” he explained, plainly frustrated at years of warnings overlooked. Some witnesses alluded to groups with ties to foreign political entities—yes, even the Chinese Communist Party surfacing in the committee’s back-and-forth.

Oversight failures multiplied as investigators dug deeper. Echoing calls for reform, both Seamus Bruner of the Government Accountability Institute and watchdogs from the Project on Government Oversight detailed official breakdowns: audits overlooked, red flags dismissed, critical reforms moving at a glacier’s pace.

The hearings left little doubt: Minnesota is a cautionary tale, not an outlier. Legislative staff quietly referenced similar emergencies simmering below the surface in other states. The size may vary, but the warning remains chillingly similar. When state and federal authorities let their guard down, opportunists—whether lone actors or global networks—inevitably slip through.

Pressure is mounting, both in the halls of Congress and down to city council chambers in St. Paul. Everyone wants to know: What happens next? Will reforms take root, or will fresh scandals simply arise with new faces and different names? In the end, this battle isn’t just about accounting or bureaucracy. It’s about trust—restoring faith that public funds serve the public good―not the shadowy ambitions of a select few.

It started with a question that’s all too familiar these days: How does such a staggering sum―billions, not thousands, not millions, but billions―just slip through a state’s fingers, apparently unnoticed? On an overcast morning in Washington, a Senate subcommittee drew back the curtain on an ongoing saga unfolding in Minnesota, but it's a story with ripples likely extending far beyond.Inside the packed chamber, gravity hung in the air. Witnesses took turns sketching out a landscape pocked by fraudulent daycares, bogus clinics, and make-believe food programs—all of them, according to federal prosecutors, part of a labyrinth that may have quietly redirected nearly $9 billion in taxpayer money. These weren’t petty, isolated crimes. Testimony described whole networks—some operating with the sophistication of seasoned multinationals, some even reaching overseas.Senator Josh Hawley, seldom shy with his criticism, wasn't placated by reassurances. "American taxpayers are getting robbed blind," he charged in a televised exchange that quickly echoed across newsrooms and living rooms alike. He went further, invoking a vision of chaos fanned from outside U.S. borders, with organized rings not just looting funds but possibly stoking unrest.Questions inevitably turned toward the watchdogs in St. Paul. Minnesota State Senator Mark Koran didn’t hold back, his frustration palpable. He invoked the names of Governor Tim Walz and Attorney General Keith Ellison, suggesting a pattern—at best, neglect; at worst, a blind eye or even active obfuscation, with records allegedly backdated and whistleblowers facing pressure, even personal attacks. Imagine risking your job and reputation by flagging suspicious transactions, only to discover that warnings had been muffled, and sometimes, the messengers themselves targeted.That risk wasn’t hypothetical. One state employee described enduring coordinated smears for raising alarms as far back as 2019—a reminder that corruption, when entrenched, rarely stops at the ledger.A particularly sensitive aspect of the investigation centers on Minnesota’s Somali community, which has grown rapidly since the 1990s. With nearly 80,000 Somali Minnesotans today, they represent one of the largest such communities in America. The fact that the majority of indictments trace back to this group has fueled allegations and, for some, suspicions about the broader role of immigrant populations in abuse of social services. The testimony of Simon Hankinson, a former consular official, underscored deep challenges at the intersection of immigration and oversight. "I was lied to many times a day about every aspect of applications," he noted, describing a culture of half-truths that he said sometimes travels with people to their new homes.It’s a volatile topic. Advocacy groups warn against conflating individuals with criminal behavior. Yet, federal research cited at the hearing painted a sobering picture: over eighty percent of Somali households in the state, it’s claimed, receive some form of welfare. For critics, this became shorthand for what they dubbed the country’s largest modern refugee fraud.But to conclude this is only a Minnesota crisis would be missing the forest for the trees. Haywood Talcove, heading LexisNexis Risk Solutions, painted broader strokes: criminal syndicates, some with links as distant as East Asia, exploit a patchwork system that’s virtually begging to be scammed. “Organized crime, drug shipments, human trafficking—the same channels used for one can be pivoted for another,” he explained, plainly frustrated at years of warnings overlooked. Some witnesses alluded to groups with ties to foreign political entities—yes, even the Chinese Communist Party surfacing in the committee’s back-and-forth.Oversight failures multiplied as investigators dug deeper. Echoing calls for reform, both Seamus Bruner of the Government Accountability Institute and watchdogs from the Project on Government Oversight detailed official breakdowns: audits overlooked, red flags dismissed, critical reforms moving at a glacier’s pace.The hearings left little doubt: Minnesota is a cautionary tale, not an outlier. Legislative staff quietly referenced similar emergencies simmering below the surface in other states. The size may vary, but the warning remains chillingly similar. When state and federal authorities let their guard down, opportunists—whether lone actors or global networks—inevitably slip through.Pressure is mounting, both in the halls of Congress and down to city council chambers in St. Paul. Everyone wants to know: What happens next? Will reforms take root, or will fresh scandals simply arise with new faces and different names? In the end, this battle isn’t just about accounting or bureaucracy. It’s about trust—restoring faith that public funds serve the public good―not the shadowy ambitions of a select few.