Politics
Inside Minnesota’s $1B fraud: fake offices, phony firms and a scandal hiding in plain sight
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MINNEAPOLIS, MN – As a massive fraud scheme costing state and federal taxpayers at least $1 billion dollars continues to unfold in Minnesota, Fox News Digital visited several locations that received funding through programs like Feeding Our Future and found several inconsistencies exposing the depth of the scandal.
The now-infamous Griggs-Midway Building housed an “unusual concentration” of fraudulent entities involved in the HSS scheme, according to Acting U.S. Attorney Joseph H. Thompson.
Twenty-two “businesses” connected to the HSS program were registered to this single location. Thompson described these entities as “purely fictitious companies solely created to defraud the system.”
These 22 fraudulent businesses collectively billed Medicaid for a staggering $8 million between January 2024 and May 2025.
OMAR ACCUSED BY GOP OPPONENT OF OPENING UP THE DOOR TO MASSIVE MINNEAPOLIS FRAUD: ‘DEEP, DEEP TIES’
An in-person investigation by Fox News Digital of the building, located in St. Paul, Minnesota, showed huge swaths of the southern side of the building completely abandoned. A black and white banner advertising open spaces in the building was adorned atop the “Griggs-Midway Building” sign.
Several men sat together and engaged in conversation at the building entrance. When approached, the men told Fox News Digital that they did not speak English.
However, the western side of the building housed a number of seemingly legitimate businesses on the first floor, including a hair salon, a financial support and loan service for African immigrants and a property management office.
The Griggs-Midway building has become a focal point of the Minnesota HSS fraud scandal. (Nikolas Lanum/Fox News Digital)
Following extensive FBI searches of the building, the Minnesota Department of Human Services conducted approximately 40 investigations into providers associated with the larger Griggs-Midway building.
Brilliant Minds Services allegedly submitted over $2.3 million of the $8 million in fraudulent claims from the Griggs-Midway location, ranking as one of the state’s highest-billing HSS providers last year.
Four defendants, Moktar Hassan Aden, 30; Mustafa Dayib Ali, 29; Khalid Ahmed Dayib, 26; Abdifitah Mohamud Mohamed, 27, were charged in the fraud case. Mohamed was the owner of one of the other fraudulent businesses implicated, Foundation First Services LLC.
‘HE HAD YEARS TO STOP THIS’: GOP LAWMAKERS BLAST WALZ OVER MASSIVE MINNESOTA FRAUD SCHEME
Another false claim location took Fox News Digital to a second-story walkup above a sushi shop just blocks away from the Mississippi River.
The entryway was locked, and it was unclear whether the fraudster simply utilized the address to keep distance, or if the fraudster was actually located at the unit number listed on the claim.
The second floor showed little sign of life. Though one window displayed a “No Kings, No Fascists” sign facing out onto the snowy city street.
A large uniform reddish-brown brick building known as “Winsor Plaza” was the next destination of Fox News Digital’s trek through a brewing Minnesota snowstorm.
The simple, box-like form of the building was centered by a red canopy protruding from the structure’s primary entrance. A white-water tower with “Roseville” painted in red letters rose in the distance through the fog. Inside, a directory showed dozens of legitimate businesses, including doctors’ offices and wealth management services.
A search through the quiet halls of 1935 W County Road gave way to confusion. Unit 150, the office space listed on the false claim, was nowhere to be found. It appeared that in the building’s current configuration the suite simply did not exist. Not only was the claim fraudulent, so was the address.
A similar situation occurred at 9120 Baltimore St N. The claims report noted that the fraudulent entity was operating out of suite 100. Upon arrival, 9120 was seen affixed to a stone pillar in the center of a business parking lot.
However, there was no conglomerate of office spaces or apartment units, no numbers affixed to different storefronts. Only a singular, operational dental office. Another apparent fraudulent address.
NorthPark Dental in Blaine, Minnesota, appears to be a legitimate, operational business. There is no Unit 100 at this location, suggesting that the alleged fraud entity gave a fake address. (Nikolas Lanum/Fox News Digital)
The trend was broken at the next two locations.
2756 Douglas Dr N is a commercial address in Crystal, Minnesota, housing businesses like Rock Bridge Counseling & Mental Health and All Kind Painting & Cleaning, offering services for teens in crisis and home improvement, respectively.
These two businesses comprise suites A and B of the building but were not the fraudulent entities listed on location claims. A real building, with real businesses, but a fake company that appeared to never exist in that space.
MINNESOTA LAWMAKERS VOW NEW CRACKDOWN AFTER $1B FRAUD MELTDOWN THEY SAY WALZ LET SPIRAL
Another stop, 1541 Como Ave, was found inside a narrow St. Paul, Minnesota alleyway. The address housed a small, rusted garage affixed to the back of a church. The garage appeared vacant, with no mailbox or garbage cans.
A picnic bench just outside the garage door was covered in leaves, snow and other debris.
Several gentlemen inside a nearby local business told Fox News Digital that a man named “John” had used the location for a small pop-up gym and fitness center. He was often seen driving around in a fancy car. There was no indication as to whether this location was the legitimate operation center of the fraudulent claim.
4601 E 54th St, another location tied to the scandal, was visited by Fox News Digital only to find an empty parking lot. The address listed was in the 400s on the street. However, there are no 400s on that street, only 500s.
Another location, 2720 E Lake St, was completely boarded up and covered in graffiti with a homeless individual sleeping out front. The building appeared to have been inoperable for a long period of time.
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“Most of that $500 million hasn’t served a single meal and some of the simple things are if they would have just gone to the facilities, you know, you hear of the thousands of people being served out of an apartment twice a day, all they would have to do is show up and look at it,” Minnesota Republican state Sen. Mark Koran told Fox News Digital about the fraud that was hiding in plain sight in Minneapolis.
“There was an legislative auditor report that showed that 30 property owners where these businesses claim to operate out of, contacted the Department of Education who manage it, who managed that program, and they told them one, the businesses don’t exist in their facilities, so they don’t exist, period, and one of them I think was a city park,” Koran said.
“And so the Department of Education gave that complaint to the nonprofit Feeding Our Future to address those issues and the Department of Education continued to pay millions to those thirty with a blatant, simple process of ‘we’ve been notified they don’t exist’ and they rejected and ignored it.”
Politics
Video: President Fires Noem as Homeland Security Secretary
new video loaded: President Fires Noem as Homeland Security Secretary
transcript
transcript
President Fires Noem as Homeland Security Secretary
President Trump fired Kristi Noem, his embattled homeland security secretary, on Thursday and announced his plans to replace her with Senator Markwayne Mullin of Oklahoma.
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“The fact that you can’t admit to a mistake which looks like under investigation is going to prove that Ms. Good and Mr. Pretti probably should not have been shot in the face and in the back. Law enforcement needs to learn from that. You don’t protect them by not looking after the facts.” “Our greatness calls people to us for a chance to prosper, to live how they choose, to become part of something special. Anyone who searches for freedom can always find a home here. But that freedom is a precious thing, and we defend it vigorously. You crossed the border illegally — we’ll find you. Break our laws — we’ll punish you.” “Did you bid out those service contracts?” “Yes they did. They went out to a competitive bid.” “I’m asking you — sorry to interrupt — but the president approved ahead of time you spending $220 million running TV ads across the country in which you are featured prominently?” “Yes, sir. We went through the legal processes. Did it correctly —” Did the president know you were going to do this?” “Yes.” “I’m more excited about just ready to get started. There’s a lot of work we can do to get the Department of Homeland Security working for the American people.”
By Jackeline Luna
March 5, 2026
Politics
DOJ continues Biden autopen probe despite former president unlikely to face charges
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The Department of Justice (DOJ) is continuing its investigation into former President Joe Biden’s use of an autopen in the final months of his administration — focusing on pardons and commutations — though a senior official said Biden is unlikely to face criminal exposure.
A senior DOJ official told Fox News the autopen investigation is ongoing and not closed, adding investigators are reviewing clemency actions taken in the final months of the Biden administration.
The official also pointed out, however, that the use of an autopen by a sitting president is “established law.”
The issue under review is whether the autopen was used in violation of the law, specifically, whether Biden personally approved each name included on pardon and commutation lists.
A framed portrait shows former President Joe Biden’s signature and an autopen along “The Presidential Walk of Fame” outside the Oval Office of the White House. (Andrew Harnick/Getty Images)
“These types of cases are tough. Executive privilege issues come into play,” the official said.
What is also clear, the official indicated, is that the target of any potential prosecution would not likely be Biden.
“It’s hard to imagine how [Biden] could be criminally liable for pardon power,” the senior DOJ official said.
BIDEN’S AUTOPEN PARDONS DISTURBED DOJ BRASS, DOCS SHOW, RAISING QUESTIONS WHETHER THEY ARE LEGALLY BINDING
The use of the autopen by former President Joe Biden remains under investigation. (AP Photo)
The official noted that one reason the former president would be unlikely to face charges stems from a 2024 Supreme Court ruling that originally involved current President Donald Trump but would also apply to Biden.
“We conclude that under our constitutional structure of separated powers, the nature of Presidential power requires that a former President have some immunity from criminal prosecution for official acts during his tenure in office,” the Supreme Court ruled in Trump v. United States in 2024.
“At least with respect to the President’s exercise of his core constitutional powers, this immunity must be absolute.”
Sources familiar with the matter told Fox News Digital that U.S. Attorney Jeanine Pirro’s team continues to review the Biden White House’s reliance on an autopen, contradicting a recent New York Times report that indicated the investigation had been paused.
DOJ SIGNALS IT’S STILL DIGGING INTO BIDEN AUTOPEN USE DESPITE REPORTS PROBE FIZZLED
President Donald Trump has pushed for consequences for former President Joe Biden’s alleged use of the autopen. (Julia Demaree Nikhinson/AP Photo)
Trump has pushed for consequences over the autopen controversy, alleging on social media that aides acted unlawfully in its use and raising the prospect of perjury charges against Biden.
Biden has rejected those claims, saying in a statement last year he personally directed the decisions in question.
“Let me be clear: I made the decisions during my presidency,” Biden said. “I made the decisions about the pardons, executive orders, legislation and proclamations. Any suggestion that I didn’t is ridiculous and false.”
The House Oversight Committee has homed in on Biden’s clemency actions, including five controversial pardons for family members in the final days of his presidency, citing what it described as a lack of “contemporaneous documentation” confirming that Biden directly ordered the pardons.
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The committee asked the DOJ to investigate “all of former President Biden’s executive actions, particularly clemency actions, to assess whether legal action must be taken to void any action that the former president did not, in fact, take himself.”
Fox News Digital’s Ashley Oliver contributed to this report.
Politics
Anxiety grows among California Democrats as gubernatorial candidates rebuff calls to drop out
SACRAMENTO — Despite a plea from the head of the California Democratic Party for underperforming candidates to drop out of the governor’s race, all but one of the party’s top hopefuls spurned the request.
Party leaders fear the growing possibility that the crowded field will split the Democratic electorate in the state’s June top-two primary election and result in two Republicans advancing to the November ballot, ensuring a Republican governor being elected for the first time since 2006.
His advice largely unheeded, state party Chairman Rusty Hicks on Thursday said the fate of a Democratic victory now rests squarely on the gubernatorial candidates who flouted him.
“The candidates for Governor now have a chance to showcase a viable path to win,” Hicks said in a statement Thursday.
Eight top Democratic candidates filed the official paperwork to appear on the June ballot after Hicks released a letter on Tuesday urging those “who cannot show meaningful progress towards winning” to drop out. Friday is the deadline to file to appear on the primary election ballot. On March 21, the secretary of state’s office will formally announce who will appear on the June ballot.
“It sounded like someone who has his head in the sand,” former Los Angeles Mayor Antonio Villaraigosa said of Hicks’ open letter. “[Most] of us filed within 24 hours of getting that letter. It created some press but not much else. It didn’t impact [most] of the candidates and it certainly didn’t impact my candidacy.”
Democratic strategist Elizabeth Ashford said it was appropriate for Hicks and other Democratic leaders to make a public plea as opposed to keeping such discussions solely behind closed doors.
But the response showed the limited power of the modern-day party bosses.
“It’s definitely not Tammany Hall,” said Ashford, referring to the storied Democratic political machine that had a grip on New York City politics for nearly a century. “The party and Rusty are influential and they are helpful and that is their role. I don’t think anyone would be comfortable with outright public strong-arming of specific candidates.”
Ashford, who worked for former Govs. Jerry Brown and Arnold Schwarzenegger, along with former Vice President Kamala Harris when she served as state attorney general, added that the minimal power of the state GOP is likely a factor in the dynamics of Democrats’ decision to stay in the race. Democratic registered voters outnumber Republicans by almost a 2-to-1 margin in the state, and Democrats control every statewide elected office and hold supermajorities in both chambers of the California Legislature.
“If there were a strong viable opposition that existed, if the Republican Party was actually relevant in California, I think that would sort of force greater unity amongst Democrats,” she said.
Just one of the nine major Democrats did heed the party chair’s message. Ian Calderon, a former Los Angeles-area Assemblyman who consistently polled near the bottom of the field, withdrew from the race and endorsed Rep. Eric Swalwell (D-Dublin) on Thursday.
Candidates cannot withdraw their name from the ballot once they officially file to run for office, leading to some fears that even if other candidates drop out of the race, a crowded primary ballot could still split California’s liberal votes.
“I’m disappointed most of them will be on the ballot,” said Lorena Gonzalez, the head of the California Federation of Labor Unions, which will announce whether it endorses in the governor’s race on March 16. But “I do still think you can have people drop out of the race or become viable. I think that there are candidates who know viability is a real thing they have to show in coming weeks” before ballots start being mailed to voters.
Jodi Hicks, chief executive and president of Planned Parenthood Affiliates of California, said she is “still worried” about the prospect of two Republicans winning the top two spots in the June primary, shutting Democrats out of any chance of winning the governor’s office in November.
“I didn’t have any specifics of who I wanted to do what,” she said. “I’m just very, very concerned and the stakes are really high right now and seem to be getting worse by the day.”
Republican candidate Steve Hilton, a former Fox News host, said he is “confident that I’ll be in the top two” along with a Democratic candidate. “I find it very difficult to believe that the Democratic Party will just surrender California and allow two Republicans to be in the top two.”
Hilton made the comments Thursday after a gubernatorial forum in Sacramento hosted by the California Assn. of Realtors focused on housing and homeownership. Villaraigosa, former Health and Human Services Secretary Xavier Becerra, San Jose Mayor Matt Mahan and former Rep. Katie Porter also attended. Swalwell, who is currently in Washington, joined the panel virtually.
During the panel, candidates were in broad agreement about the need to reduce barriers and costs in order to build more housing in California, where the median single-family home costs more than $820,000. Many also endorsed proposals to disincentivize private investment firms from buying up homes as well as a $25-billion bond proposed by former Sen. Bob Hertzberg to help first-time homebuyers afford a down payment.
“This really isn’t a debate because we’re agreeing so much with each other,” Hilton said at one point during the event.
That political alignment on one of the most pressing issues facing California may explain why voters are having such a difficult time deciding who to support.
A recent poll of the Public Policy Institute of California found that the five candidates topping the crowded field were within 4 percentage points of one another: Porter, Swalwell, Hilton, Democratic hedge fund founder Tom Steyer and Republican Riverside County Sheriff Chad Bianco. Earlier polls had Hilton and Bianco leading the field, though many voters remained undecided.
Some candidates took issue with Hicks’ push to cull the field, noting that most of the lower-polling candidates he asked to drop out are people of color.
“Our political system is rigged, corrupted by the political elites, the wealthy and well connected,” state Supt. of Public Instruction Tony Thurmond, who is Black and Latino, said in a video posted on social media in response to the open letter. “The California Democratic Party is essentially telling every person of color in the race for Governor to drop out.”
Villaraigosa argued that enough voters remain undecided that it was too early for quality candidates to call it quits.
“Most people don’t even know who’s in the race,” said Villaraigosa. “It’s premature to be thinking about getting out of the race. I certainly am not considering it and I feel no pressure.”
Aside from the opinion polls, other indicators on who may emerge from the pack a candidates are slowly emerging.
Though it wasn’t enough to win the party’s endorsement, Swalwell won support from 24% of delegates at the state Democratic convention last month, the most of any party candidate.
While spending is no guarantee of success, Steyer has donated $47.4 million of his own wealth to his campaign. Mahan, who recently entered the race and is supported by Silicon Valley leaders, has quickly raised millions of dollars, as have two independent expenditures committees backing his bid.
Ashford said part of candidates’ decisions to remain in the race could have been driven by their lengthy political careers, as well as Democrats’ crushing November redistricting victory.
“In several cases, these are people who have won statewide office,” she said. “It’s tough to feel like there may not be a sequel to that.”
Nixon reported from Sacramento and Mehta from Los Angeles.
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