The Federal Bureau of Investigation (FBI) has announced a significant escalation of its operations in the US state of Minnesota, aiming to dismantle what it describes as extensive fraud networks exploiting federal aid programmes.
‘Tip of the Iceberg’: A $250m Food Aid Fraud Uncovered
In a statement made on social media on Sunday, FBI Director Kash Patel confirmed the agency is deploying additional personnel and investigative resources to the region. This move follows the successful prosecution of a major fraud case, where $250 million in federal food aid intended for vulnerable children during the Covid-19 pandemic was stolen.
That specific investigation resulted in 78 indictments and 57 convictions. However, Patel warned this substantial sum is believed to be "just the tip of a very large iceberg". He indicated that some individuals involved in the alleged schemes are being referred to immigration officials for potential denaturalisation and deportation proceedings.
Political Firestorm: Allegations and Scapegoating
The FBI director's comments intersect with a highly charged political narrative. Federal prosecutors have previously estimated that as much as $9 billion may have been stolen in schemes they link to Minnesota's Somali population—a figure nearly equivalent to Somalia's entire GDP.
The Trump administration has repeatedly portrayed the state's Somali immigrant community as a locus for widespread fraud. Last month, former President Donald Trump ended legal protections for Somalis in Minnesota, accusing the state under its Democratic Governor, Tim Walz, of being "a hub of fraudulent money laundering activity". Trump has made inflammatory remarks about Somali Americans, telling them to "go back to where they came from".
This focus has drawn fierce criticism from Minnesota's Democratic Representative, Ilhan Omar, who is of Somali heritage. Omar has labelled Trump's "obsession" with her and the Somali community as "creepy and unhealthy". She has vowed not to be intimidated or scapegoated, stating her constituents have been harassed by Immigration and Customs Enforcement (ICE) agents.
In a recent interview, Omar called Trump's immigration policies "cruel" and "severely inhumane", geared towards a "white supremacist view of what America should be".
Online Allegations and Ongoing Investigations
Director Patel also referenced recent social media reports in Minnesota, which appear to align with an online investigation by journalist Nick Shirley. Shirley's report, a 42-minute video posted on 26 December and viewed over 84 million times, alleges a Minneapolis daycare centre received $4 million in aid despite having no enrolled children.
Patel stated the FBI had already increased its presence in the state before this viral video and the subsequent online discussion escalated. Meanwhile, Representative Omar faces separate scrutiny regarding her family's finances. Reports indicate her and her husband's net worth surged dramatically, and their venture capital firm, Rose Lake Capital, recently purged details of key officers from its website. Omar has not been accused of any wrongdoing related to the fraud investigations.
When questioned about her support for pandemic-era aid legislation linked to some fraud systems, Omar defended the policies, stating they "did help feed kids" and were not the cause of the criminal activity. As the FBI's probe widens, the situation continues to fuel a potent mix of law enforcement action, community anxiety, and intense political conflict.
