ST. PAUL, Minnesota — Hundreds of employees at the Minnesota Department of Human Services (DHS) are accusing Gov. Tim Walz of being “100% responsible” for ignoring early warnings about massive fraud and retaliating against whistleblowers — even as federal prosecutors continue unraveling a COVID-era scheme involving more than $250 million in stolen funds.

According to DHS staff, multiple internal red flags about suspicious pandemic relief payments were dismissed for years, despite rapidly escalating signs of corruption. Several whistleblowers say they were threatened, demoted, or reassigned simply for speaking up.

---

Federal Investigation: Over $250 Million Stolen

4

Federal prosecutors describe the case as one of the largest COVID-assistance fraud schemes in U.S. history.
More than $250 million — money intended to feed children during the pandemic — was siphoned off through shell nonprofits, falsified meal reports, and an elaborate network of money laundering.

Much of the stolen money was uncovered in:

• personal bank accounts,
• luxury cars, properties, and jewelry,
• international transfers, including to Somalia.

---

Ties to Minnesota’s Somali Community

6

A significant number of the individuals charged in the scheme have ties to Minnesota’s Somali community, the largest Somali population in the United States.

Federal authorities say tens of millions were funneled overseas through informal money-transfer systems common in East Africa.

More troubling, national security sources say some of these funds may have reached the terrorist group Al-Shabaab, which operates widely in the region.
Investigators are currently tracking the movement of the money to confirm the extent of the overseas network.

---

DHS Employees: “We Warned Them, but They Silenced Us”

4

In letters sent to the state inspector general, numerous DHS employees claim they repeatedly warned leadership about fraudulent activity — only to be ignored or punished.

One anonymous staff member said:

“We saw millions going to programs that didn’t exist. When we reported it, we became the problem.”

Another employee said they faced disciplinary threats for questioning meal-count sheets that listed numbers of children 5–10 times higher than reality.

---

Pressure Mounts on Gov. Walz

DHS employees say Gov. Tim Walz and senior officials ignored the warnings, allowing the scheme to explode into a full-scale federal investigation.

They allege:

“If the warnings had been taken seriously, $250 million would not have vanished.”

Opposition lawmakers have called the scandal “a historic failure of the Walz administration”, with some demanding an independent investigation and public hearings on the governor’s role.

---

Political and Legal Fallout Continues

The federal investigation is ongoing, with more indictments expected.
Meanwhile, political pressure continues to build on Gov. Walz, especially as DHS workers — those closest to the system — continue to speak out.

The scandal leaves Minnesota with critical unanswered questions:

• Why were early warnings ignored?
• Why were whistleblowers retaliated against?
• Who will be held responsible for the $250 million in losses?
• Did any of the stolen funds ultimately support extremist groups overseas?