Podcast Summary: The Truth with Lisa Boothe

Episode: Inside Minnesota’s Billion-Dollar Fraud Scandal with Dustin Grage

Date: December 2, 2025
Host: Lisa Boothe
Guest: Dustin Grage (Minnesota-based GOP strategist, TownHall columnist)

Overview:

This episode explores the unfolding, multi-billion dollar fraud scandal in Minnesota involving taxpayer funds meant for programs such as child nutrition and autism therapy. The scheme is alleged to involve widespread fraud within nonprofits linked to the Somali community, with accusations ranging from "ghost meals" to terrorism financing. Lisa Boothe and guest Dustin Grage analyze how the fraud persisted for years, the failures of Governor Tim Walz’s administration, connections to larger issues of assimilation and immigration, and implications for state and national politics.

Key Discussion Points & Insights

1. Scope and Origins of the Fraud

• The scale of the fraud is enormous, possibly exceeding $6.5 billion when fully uncovered.
• Initial reports mention "up to a billion," but Grage insists the real figure is much higher.
  • “Frankly, we’re looking at billions of dollars.” – Dustin Grage [04:06]
• The scandal began with the CCAP daycare assistance program as early as 2014, with issues persisting through various administrations.

Timestamps:

• [02:38] Lisa introduces Dustin Grage, outlines the scandal
• [04:06] Grage details the real scope and whistleblower input

2. Mechanics: How the Fraud Worked

• The fraud centered around nonprofits, especially during the COVID pandemic, by exploiting government relief programs intended for housing, child nutrition, and therapy.
• Fraudsters funneled money via fake meal programs (like Feeding Our Future), using both real and fabricated identities.
  • Example: “They claimed to have been feeding more people per week than the population of the community.” – Dustin Grage [17:40]
• Money was sometimes transferred as cash via hawalas to the Horn of Africa, indirectly aiding terrorist groups by skimming off remittances.
  • “Al Shabaab is probably going to take a percentage off those money broker deals and then therefore you are funding terrorism.” – Dustin Grage [06:35]

3. Barriers to Oversight and Whistleblowing

• Repeated warnings dating back years were suppressed or ignored due to fears of being labeled racist for criticizing Somali-centric nonprofits.
  • “We would be accused of being racist because while you’re picking on the Somalis very specifically.” – Dustin Grage [10:36]
• Internal media suppression: Journalists relayed to Grage that newsrooms discouraged reporting on Somali-located fraud, fearing social backlash.

4. Government Inaction and Political Context

• The Walz administration briefly halted payments but reinstituted them after accusations of racism and subsequent legal challenges.
• Judicial protection: Example given where a conviction on Somali Medicaid fraud ($7.2 million) was overturned by a judge, despite a unanimous jury verdict.
  • “The judge… came back, reversed the ruling… It's absolutely insane.” – Dustin Grage [15:49]
• Republicans only recently gained committee oversight to investigate fraud at the state level.

5. Community Involvement and Dynamics

• Many in the Somali-American community either participated in, benefited from, or turned a blind eye to the fraud. Recruitment involved giving families cash kickbacks for child names on fake rosters.
• Still, some Somali whistleblowers have come forward but must remain anonymous due to clan-related social risks.
  • “A lot of the whistleblowers are actually Somalian… but they can’t actually even come out publicly… their family will disown them.” – Dustin Grage [25:19]

6. Broader Immigration and Assimilation Issues

• Large-scale fraud seen as evidence of failed assimilation: enclaves within Minneapolis do not culturally integrate, making law enforcement and oversight challenging.
  • “You can't go city blocks without a translator in some of these areas.” – Dustin Grage [25:19]
• The cycle continues as new immigrants arrive under Temporary Protected Status (TPS), which Grage opposes keeping after so many decades.

7. Federal Response and Future Policy

• The Department of Justice has charged 75+ defendants in the Feeding Our Future scheme, but state-level action remains limited.
• Trump administration is said to be planning further crackdowns, potentially including denaturalization for those convicted of serious fraud or with terrorist ties.
  • “If you committed immigration fraud, you should also have to go back home.” – Dustin Grage [34:25]

Notable Quotes & Memorable Moments

• On Scale and Secrecy:
  “The fraud could exceed $6.5 billion when we’re all said and done with this just in the time that Tim Walz has been governor.”
  – Dustin Grage [04:06]

• On Social Pressures:
  “I've been told this from mainstream media journalists in Minnesota... they're tired of being accused of being a racist simply for trying to do their job.”
  – Dustin Grage [10:36]

• On Lack of Oversight:
  “You have to believe just everyone is in on it at this point.”
  – Dustin Grage [15:49]

• On Assimilation:
  “When you’re just forced to not assimilate, you’re just simply not going to adjust to the new culture of where you’re being dropped off at.”
  – Dustin Grage [25:19]

• On Policy Solutions:
  “Denaturalization pretty much could fall into two categories right now. One, you have a terrorist association... Two, you committed immigration fraud...”
  – Dustin Grage [34:25]

• On Trump’s Awareness:
  “I could tell you fairly often... he definitely has a magnifying glass on Minnesota right now. And yeah, he’s going to crack down hard on it coming up here.”
  – Dustin Grage [36:35]

Important Segment Timestamps

• Overview of the scandal and guest intro – [02:38 – 04:06]
• Origins and escalation of fraud – [06:35 – 10:28]
• Oversight barriers and race accusations – [10:36 – 12:56]
• Whistleblower challenges and demographic insights – [15:36 – 19:49]
• Assimilation and community effects – [25:19 – 30:31]
• Policy and proposed crackdowns – [34:25 – 36:35]

Tone and Style

The conversation is direct, political, and at times combative, especially on issues relating to race, immigration, and assimilation. Lisa Boothe and Dustin Grage mix investigative seriousness with pointed, occasionally provocative commentary.

Summary Prepared for Listeners:
This podcast provides a granular, insider’s take on the massive fraud scandal in Minnesota, linking it to systemic failures of governance, challenges within immigrant communities, and the political consequences of identity-driven oversight failures. The episode spotlights the confluence of local corruption, federal action, and national political strategy—capturing the scope and urgency of the controversy for audiences not previously familiar with these developments.