NEW: Tim Walz Referred To DOJ For Prison Expenses
U.S. Rep. Anna Paulina Luna (R-FL) announced Thursday that she had referred Minnesota Governor Tim Walz and Attorney General Keith Ellison to the U.S. Department of Justice for criminal prosecution. The referral comes just days after Walz announced that he would not be seeking re-election due to the rampant, multi-billion dollar public welfare fraud scandals in the state.
Rep. Luna announced the referral during a House Oversight Committee hearing centered on fraud in Minnesota, which examined fraud and misuse of federal funds in Minnesota’s social services programs. It accuses Walz and Ellison of being complicit in fraud schemes involving federal aid programs and largely focuses on those administered by the state that have experienced significant fraudulent activity, particularly those benefiting vulnerable populations such as children and individuals with disabilities.
The primary allegations are that Walz and Ellison were aware of widespread fraud but failed to take adequate action to prevent or stop it. Witnesses during this week’s hearings claimed that the senior Democrats ignored warnings from whistleblowers, state auditors, and investigative reports dating back to at least 2009, with specific concerns about childcare fraud emerging between 2011 and 2013
It was further alleged that Ellison held meetings with affiliates of organizations involved in fraud, prioritizing the continuation of funding over program integrity. Some testimony suggested that funds from these schemes were diverted to overseas terrorist networks, including Al-Shabab in Somalia, through informal money transfer systems.
Testimony from the hearing indicated that Walz’s administration was informed of fraud issues upon taking office in 2018 but did not intervene despite ongoing prosecutions and media coverage. Whistleblowers reported instances of backdating and falsifying records in programs, which were not pursued.
For Ellison, evidence included an audio recording of a meeting with Feeding Our Future affiliates, where the focus was on sustaining operations rather than ensuring proper use of funds. Campaign contributions to Ellison followed shortly after this meeting. Retaliation against whistleblowers was also cited, including threats of termination, blacklisting, involuntary transfers, and lengthy investigations.
No direct evidence of personal financial gain by Walz or Ellison was presented in the available accounts, but the testimonies emphasized a pattern of inaction amid known risks.
“Based on testimony today, I have enough evidence to believe both Tim Walz and Keith Ellison were knowingly complicit in a Somali fraud scheme in Minnesota. Therefore I have referred them BOTH to the DOJ for criminal charges,” Luna said during Thursday’s hearing. “May justice be swift. The American people are tired of being taken advantage of.”
Minnesota has faced multiple large-scale fraud investigations in state-administered federal programs since the COVID-19 pandemic. The fraud has largely focused on public welfare scandals, primarily in the state’s healthcare, childcare and disability services sectors, in addition to widespread pandemic aid fraud.
The Feeding Our Future case has emerged as the most prominent example, which involved a nonprofit that exploited a federal child nutrition program during the COVID-19 pandemic. Prosecutors allege $250 million to $300 million was stolen through fraudulent meal claims that were never served. To date, 78 people have been charged in connection with the scheme, 57 of whom have been convicted.
Looted funds were used for luxury items, expensive vacations and properties abroad, among other things.
Another case involves autism services fraud, where payments for autism therapy under Medicaid grew from $1 million in 2017 to over $220 million in 2024. Investigations revealed billing for nonexistent services, contributing to the broader $18 billion in potentially fraudulent disbursements.
Fraud in housing stabilization services is also notable, with the program’s costs rising from $6 million in 2019 to $192 million in 2024. This involved fake claims for housing assistance, with some providers engaging in “fraud tourism” from out of state, obtaining $3.5 million in improper payments.
Following a recent indictment of six individuals in connection with housing and autism treatment-related scandals, U.S. Attorney for the District of Minnesota Joseph Thompson estimated that medicaid fraud alone in the state could top more than $9 billion.