‘SO…MUCH…FRAUD’: Minnesota’s Explosive Scandal Branded ‘Worse Than Watergate’ – Political Fallout, Billions Lost, and Unanswered Questions

In what is rapidly becoming one of America’s most staggering scandals, new revelations about a massive fraud scheme in Minnesota have left lawmakers, journalists, and the public grappling with the scope of corruption. Branded by insiders as “worse than Watergate,” the alleged fraud reaches deep into the heart of Minnesota politics, implicating high-profile Democrats, social programs, and potentially even overseas criminal networks.

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The Unraveling of an Unprecedented Fraud

It all began in the spring of 2021, when federal raids exposed a $250 million fraud scheme tied to the nonprofit “Feeding Our Future.” The program, intended to provide meals to children during the pandemic, instead became a vehicle for theft on a scale that still boggles the mind. Even before this, suspicions swirled around a $100 million fraud involving overbilling at Somali-owned daycare centers in Minnesota.

Minnesota-based journalist Liz Collin, who has covered the story since 2018, says the question of “who knew what and when” is at the center of the investigation. Collin’s reporting has uncovered links between the fraud and key political figures, including Congresswoman Ilhan Omar, Minneapolis Mayor Jacob Frey, and Attorney General Keith Ellison. Omar, for example, hosted her congressional victory party at a restaurant later named in the Feeding Our Future case. One of the restaurant’s owners, Saleem Sed, has since been convicted.

Mayor Frey’s senior policy aide, Abdi Nur Salah, also entered a guilty plea. Campaign donations from defendants were returned by Frey, Ellison, and Omar—but only after the scandal broke.

Political Connections and Unanswered Questions

Collin sat down with lead prosecutor Assistant U.S. Attorney Joe Thompson, who declined to comment on potential future indictments of political leaders. However, Thompson made it clear that investigations remain “wide open.” Multiple social programs in Minnesota are now under federal scrutiny, with billions of dollars potentially lost to fraud.

Audio recordings have surfaced, allegedly capturing Attorney General Ellison promising to “grease the wheels” for program operators facing investigation. In one exchange, Ellison reportedly offered to “get investigators off their back,” raising questions about the extent of political knowledge and involvement.

“It’s hard to believe someone at the top didn’t know,” Collin says. Whistleblowers claim they warned Governor Tim Walz about red flags as early as seven years ago, only to be met with silence. Now, Medicaid funding for Minnesota is at risk unless Walz takes the federal investigation seriously.

The Fallout: Criminal Behavior and Community Impact

Republican Senator John Barrasso of Wyoming, Senate Majority Whip, weighed in on the scandal, calling it “criminal, massive, and sleazy.” Barrasso alleges that Minnesota officials looked the other way because they needed votes from certain communities. He claims the fraud may have funneled money not only to criminals but also overseas, and possibly to terrorist organizations.

What makes the scandal especially egregious is the exploitation of programs intended for vulnerable groups—children, the homeless, and those with autism. “They didn’t care at all about that,” Barrasso said. “They just wanted more names for fraudulent documents.”

The details are jaw-dropping: fraudsters allegedly used websites like to invent beneficiaries, signed up fake identities for welfare, and spent ill-gotten gains on luxury cars and real estate abroad.

Capitol Hill Connections and Ramifications

The scandal’s reach extends all the way to Capitol Hill. A member of Congresswoman Omar’s staff has already been convicted for stealing $2 million meant for pandemic food relief. Barrasso calls for aggressive legal proceedings against those who “intentionally refused to follow the law,” criticizing Minnesota officials for failing to enforce accountability.

The Wall Street Journal editorial board recently called federal health subsidies “a mecca for fraud and ripe for gaming.” Undercover tests by the Government Accountability Office (GAO) found that nearly all fictitious individuals submitted to the Obamacare exchange were able to enroll in subsidized plans without proper identity or income verification.

Barrasso, a physician by training, laments the failures of Obamacare, arguing that Democrats have propped up the system with direct subsidies to insurance companies rather than consumers. He contends that the system is “set up to be taken advantage of,” and calls for reforms that put families—not bureaucrats—in charge.

Omar Responds: Deflection and Denial

As the Trump administration investigates whether taxpayer dollars were sent to terrorists in Somalia, Congresswoman Ilhan Omar has sought to deflect blame. She argues that any linkage between stolen funds and terrorism represents a failure of law enforcement—not her office.

Fox News contributor Mary Katherine Ham points out that Omar has not denied her close connections to those implicated in the fraud. “She has plenty of associates, close friends, allies who were enriching themselves off $250 million defrauded from one program alone, maybe a billion in the state,” Ham said. “She just wants to lay it off on someone else. But ma’am, you’re in charge.”

Ham and others note that Omar, as a representative and lawmaker, should be actively ensuring federal money is properly spent, especially on compassionate services she claims to champion.

The Broader Political and Cultural Debate

The scandal has also sparked a heated debate about assimilation, cultural identity, and political rhetoric. Omar, who is ethnically Somali, has accused critics like Trump advisor Stephen Miller—who is Jewish—of “Nazi” and “white supremacist” rhetoric. Commentators have blasted such ad hominem attacks as “lazy and unintelligent,” distracting from the real issue: a billion dollars in taxpayer money gone.

Critics argue that the Somali community has been unfairly vilified, but also stress the need for leaders like Omar to “police their own” and lead the charge for accountability. Attorney General Ellison, meanwhile, faces renewed scrutiny for allegedly soliciting campaign contributions from those implicated in the fraud and offering to intervene in investigations.

What Comes Next?

With federal investigations ongoing, the fate of Minnesota’s political leaders hangs in the balance. Prosecutor Thompson has refused to rule out future indictments, and whistleblowers continue to come forward. The Biden administration’s handling of pandemic relief fraud is under the microscope, as are the failures of state officials to act on early warnings.

For now, the scandal remains a cautionary tale of unchecked power, political favoritism, and the devastating consequences of corruption. As new details emerge, one thing is clear: the American people have been “ripped off,” and the quest for justice is far from over.\