(NewsNation) — The Justice Department said five more people have been charged as part of its investigation into fraud allegations in Minnesota.
Last month, reports surfaced that the state has lost billions to welfare fraud since 2019, including a $250 million case in which former nonprofit Feeding Our Future is accused of embezzling funds that found their way to an al-Qaida-linked terror group in Somalia.
Two of those charged were individuals from Philadelphia who did not appear to have any connection to the area’s Somali-American community, but were told it was a good way to make money.
A source told NewsNation the al-Shabaab organization received a cut of some of the money sent to the alleged fraudsters’ home country of Somalia. More than 80 people have been arrested so far.
Speaking to reporters, U.S. Attorney Joseph H. Thompson said there was no evidence that money was given directly to al-Shabaab, although it was possible some money made its way to the group, which often collects taxes from people in areas it controls.
Thompson characterized the fraud as unique because it was not the typical fraud of overbilling, where providers charge for a more expensive service than the one actually provided, but the creation of entire organizations designed to defraud social service programs.
He also emphasized the human cost, noting that many individuals who applied to the organizations genuinely needed assistance but did not receive it from the fraudulent organizations.
Under an X account claiming to represent 480 Minnesota Department of Human Services workers, they say they alerted Democratic Gov. Tim Walz to fraudulent billing schemes but faced monitoring, threats and repression rather than support.
“Tim Walz is 100% responsible for massive fraud in Minnesota,” the account said. “We let Tim Walz know of fraud early on, hoping for a partnership in stopping fraud, but no, we got the opposite response.”