Episode Overview

Title: Learning From Minnesota’s Somali Fraud Scandal
Date: February 25, 2026
Host/Reader: Luke, Junior at Hillsdale College
Source: Imprimis, January 2026 Issue, by Scott W. Johnson (Powerline)

This episode, read by Luke from Hillsdale College, explores the depths and causes of massive public program fraud led predominantly by members of Minnesota's Somali community. The episode recounts the evolution and exposure of fraud schemes in welfare, childcare, and nutrition assistance, their alleged connections to international terrorism, the failure of state leadership to stem the tide, and the broader implications for public trust in government oversight.

Key Discussion Points and Insights

1. Origins of the Somali Community in Minnesota

[00:05 – 02:20]

• Minnesota, historically Scandinavian in makeup, now hosts the largest Somali population in North America (~100,000, mostly in Twin Cities).
• The Somali influx began in the 1990s, as refugees from Somalia’s civil war were directed there by the State Department.
• Minnesota’s generous welfare and charitable policies further attracted Somali immigrants, both from abroad and other U.S. states.
• Quote:
  “Minnesota is the closest thing in the United States to a true social Democratic state.”
  – Prof. Ahmed Samatar, quoted by Luke ([01:48])

2. Early Red Flags: Terrorism Recruitment & Welfare Fraud

[02:20 – 04:40]

• In the 2010s, Minnesota led U.S. states in providing ISIS recruits, many from the Somali community.
• Somali recruits were “sophisticated in their creative use of social welfare benefits.”
  • Examples include using federal financial aid for ISIS travel.
• The warning signs of welfare exploitation foreshadowed later frauds.

3. Child Care Assistance Fraud

[04:41 – 07:40]

• The scandal’s viral moment: Nick Shirley’s exposé video ([~01:00]), showing Somali-run daycares with no kids present (130 million views on X, 2.5 million on YouTube).
• Longstanding daycare fraud: investigated previously (Jeff Ballian, 2013 & 2015; Jay Coles, 2025).
  • One center had “95 violations, including no records, for 16 children between 2019 and 2023.”
• The case of Fozia Sheikh Al Ali (2017), who billed $1M+ for fake services and even used taxpayer money to fund her hotel stay in Nairobi.
  • Pleaded guilty to wire fraud, sentenced to prison.
• State reporting undershot the real amount lost (officially $5–6 million; likely much higher).

4. Feeding Our Future Fraud

[07:40 – 10:50]

• Feeding Our Future, a nonprofit run by Amy Bach, colluded with dozens of Somali-run centers to siphon COVID-era federal nutrition funds ($200M in 2021 alone, $300M total).
• Fraud included fake meal counts, rosters, and invoices.
• Government oversight failed, partly due to accusations of racism when fraud concerns were raised.
• FBI raids in January 2022 were the largest such operation in state history, leading to 78 indictments.
• Quote:
  “Feeding Our Future sites multiplied like rabbits, and funds kept rolling out the door.”
  – Luke ([08:30])
• Amy Bach, despite being white, added a “multicultural, liberal element to the massive fraud.”
• To date: 50 guilty pleas, 7 guilty verdicts, 2 acquittals; 13 cases still awaiting trial.

5. Medicaid Fraud Exposed

[10:51 – 13:28]

• Medicaid Housing Stabilization Services (HSS) designed with “low barriers to entry,” making it ripe for fraud.
• Fraud extended to other Medicaid programs (autism, mental health, disability support).
  • Prosecutors found “purely fictitious companies solely created to defraud the system.”
• Defrauded amount may be as much as $9 billion (of $18 billion spent since 2018).
• Quote:
  “It feels never ending… the depth of fraud in Minnesota takes my breath away.”
  – Acting U.S. Attorney Joe Thompson ([12:40])
• Most defendants were Somali, with the exception of a few “fraud tourists” from Philadelphia.

6. Political Responsibility and Systemic Failure

[13:29 – 16:20]

• Widespread blame assigned: politicians, agencies, prosecutors, media, and the public.
  • Specific criticism of Governor Tim Walz for deflecting responsibility and Attorney General Keith Ellison for passive oversight.
  • U.S. Rep. Ilhan Omar also criticized for policies and associations facilitating the fraud.
• Quote:
  “This fraud crisis didn’t come out of nowhere. It’s the result of widespread failure across nearly every level of leadership in Minnesota.”
  – Joe Thompson ([15:16])
• Moral conclusion: leadership has forgotten the principle of public trust; a call for reform during America’s 250th year.

Notable Quotes and Memorable Moments

• “The amount of money bilked from American taxpayers could prove to be as high as $9 billion.”
  – Luke ([00:20])
• “It became clear… that although they gave the outward appearance of American assimilation, they hated America.”
  – Luke, describing ISIS trial evidence ([03:40])
• “Feeding Our Future siphoned off nearly $200 million of taxpayer money… the suspected fraud was often never fully investigated because government overseers were easily scared off by absurd claims of racism.”
  – Luke ([08:20])
• “These are often just purely fictitious companies solely created to defraud the system, and that’s unique in the extent to which we have that here in Minnesota.”
  – U.S. Attorney Joe Thompson ([11:35])
• “Every day we look under a rock and find a new $50 million fraud scheme.”
  – Joe Thompson ([12:56])
• “What we see in Minnesota is not a handful of bad actors… It’s a staggering industrial-scale fraud.”
  – Joe Thompson ([13:15])
• “Public programs fraud… indicates a leadership class that has either forgotten or no longer takes seriously the idea that public office is a public trust.”
  – Luke ([16:10])

Timestamps for Key Segments

• 00:05 – Introduction & Somali community origins
• 02:20 – Minnesota’s early links to terrorism & welfare exploitation
• 04:41 – History and exposure of child care fraud
• 07:40 – Feeding Our Future nutrition program fraud
• 10:51 – Medicaid program fraud and its scale
• 13:29 – Political accountability and state system failures
• 16:10 – Closing thoughts on public trust

Summary in the Speakers’ Tone

The episode delivers a clear yet urgent narrative, highlighting both the criminal ingenuity behind the fraud schemes and the persistent institutional failures that have allowed them to flourish. Direct quotes from officials, detailed recounting of investigative milestones, and pointed criticism of political leaders underscore the seriousness—and preventability—of these issues. The tone is factual but deeply critical, calling for accountability and a return to the concept of public office as a genuine trust.

Note:
This summary omits promotional and unrelated podcast content at the end of the episode ([16:32+]).