‘Tip of the iceberg’: Lawmaker says systematic failures fueled Minnesota fraud

“We didn’t have any idea of the breadth and the depth of the fraud here,” Robbins said.

Robbins, R-Maple Grove, is chair of the House Fraud Prevention and State Agency Oversight Committee in the Minnesota legislature.

She explained that sustained pressure from whistleblowers, federal investigators, and journalists is only just beginning to expose the problem throughout the state.

“We can investigate and shine a spotlight and gather information, but the law enforcement piece comes through either the [state] Attorney General’s office or the U.S. Attorney’s Office . . . we have to let them build their case," she said.

This comes as criticism of Gov. Tim Walz and Attorney General Keith Ellison intensifies, with some Republican lawmakers even raising the possibility of impeachment for their alleged role in the fraud.

Currently, impeachment hearings are scheduled for Wednesday.

Robbins described Minnesota’s fraud problem not as a single scandal, but as a breakdown spanning multiple government programs – from child nutrition to housing assistance – enabled by weak internal controls and years of inaction.

“Minnesotans thought we had responsible governance,” she said. “It is absolutely clear they cannot do the most basic internal controls that everyday business owners do all the time.”

According to Robbins, agencies failed to verify whether services were provided or even whether recipients existed before issuing payments. These are lapses she called a “complete dereliction of duty.”

The fraud committee has already pushed policy changes, including shutting down the housing stabilization program and restricting new providers in high-risk areas. But Robbins said prosecutions are still in early stages.

“We’re just at the tip of the iceberg in terms of prosecution,” she said.

The firestorm first broke about the Minneapolis fraud cases following the release of reports in late November which alleged that millions of taxpayer dollars had been fraudulently stolen from the Minnesota welfare system and then sent to the Somali-based terror group Al-Shabaab.

Independent and federal investigators now estimate the potential value of fraud schemes could range between $9 billion and $20 billion.

One case highlighted by Robbins she said illustrates both the scale of alleged fraud and the state’s failure to catch it.

A man previously charged in the Feeding Our Future scandal – identified by Robbins as Gandi Yusuf Mohamed – allegedly used the same shell company tied to that case to purchase property and launch two assisted living businesses after being charged.

“The brazenness of that is stunning to me,” Robbins said. “After he’d already been charged, he took that same shell company . . . and used it to start two assisted living businesses.”

State agencies did not flag the activity, she said. Instead, it was discovered only after being identified by the legislative committee.

“The fact that they don’t have a red flag on everyone who’s already been charged … is that complete dereliction of duty? I think it is,” Robbins said.

While fraud exists nationwide, Robbins argued Minnesota stands apart in both scale and pattern.

“You can see these webs of interconnected Medicaid programs tied to these fraudsters,” she said, adding that “they were building a system in multiple program areas.”

Democrats have pushed back on that characterization. During a U.S. House Judiciary Subcommittee on Crime and Federal Government Surveillance hearing in January, U.S. Rep. Jamie Raskin, D-Maryland, argued that fraud is everywhere.

“Fraud is endemic in government,” he said, as previously reported by The Center Square. “All over the world, there are fraudsters attacking our public institutions, trying to undermine them and rip them off.”

He argued that the federal fraud investigations in Minnesota were just a “pretext” for the Trump administration.

Robbins disagreed with this characterization, arguing Minnesota’s fraud problem stands apart from other states

“I do think Minnesota is unique,” she said, adding that federal involvement is not meant to target the state. “I don't think it's vindictive. They are trying to help us stop this theft of our taxpayer dollars, so that we can clean up these programs and make sure that they're serving the right people who they're intended for.”

As an example of the unique challenges in Minnesota, Robbins noted the state was “certainly the first, certainly the largest” in the Child Nutrition Program scandal. She also pointed to data showing hundreds of millions of dollars in cash leaving the Minneapolis-St. Paul airport annually, a trend previously reported by The Center Square.

“That has tripled since this issue first became public,” she said. The totals for MSP far exceed those at larger airports such as JFK and LAX, coming in at $350 million in 2025.

Despite all this, Robbins said she is hopeful Minnesota is moving in the right direction, especially as federal agencies are now helping following years of stalled action at the state level. She urged the public to be patient.

“I totally understand people's frustration and how fed up they are, but we have to follow the process and the law,” Robbins said.

She explained agencies including the Centers for Medicare and Medicaid Services, the Department of Justice and the Treasury Department have stepped in to audit programs, track suspicious financial flows and expand investigations.

“It’s been a whole-of-government response,” Robbins said. “They are really helping shut down programs [and] hold DHS accountable.”

That intervention, she said, has begun to “turn the tide” by forcing reforms and increasing scrutiny. But, despite federal involvement and competing reform plans from Republicans and Democrats, Robbins said the full scope at the state level remains unclear.

“The real answer is, I don’t know,” she said when asked how deep potential wrongdoing might go.

Robbins said an ongoing lack of responsiveness from state agencies has only deepened those concerns.

“We have put out dozens of data requests that we have not gotten answers to,” she said. “I definitely think it’s beyond just mistakes . . . there is willful neglect and malfeasance.”