Minnesota
Minnesota officials saw signs of massive fraud even before COVID hit
In July 2019, Minnesota state officials spotted early signs of fraud that would eventually siphon away more than $1 billion in taxpayer money, but they quickly faced pressure from leaders of the charitable group Feeding Our Future to stop asking questions, according to multiple former employees at the Minnesota Department of Education.
The scandal, which has already led to 61 convictions, has widely been viewed as a byproduct of the COVID-19 pandemic. At one point, then-Attorney General Merrick Garland called it “the largest pandemic relief fraud scheme” in the United States.
Acting U.S. Attorney Lisa D. Kirkpatrick said those convicted “took advantage of the Covid-19 pandemic to carry out a massive fraud scheme that stole money meant to feed children.”
But state officials say the schemes aimed at diverting federal dollars meant for people who are poor, food insecure or disabled, actually started far sooner, months after Minnesota’s Democratic Gov. Tim Walz took office in 2019. In its early stages, members of the charitable group Feeding Our Future billed the state for some $3.4 million.
By 2021, however, that number ballooned. Before it was finally halted, Feeding Our Future had falsely claimed to have served 91 million meals, for which the group received nearly $250 million in federal funds, according to federal prosecutors. That money did not go to feed kids, federal officials said. Instead it was used to fund lavish lifestyles.
Investigators say the money came from the U.S. Department of Agriculture, with oversight from state governments. In Minnesota, those funds were administered by the state Department of Education, with meals historically provided to kids through schools and day care centers.
In recent weeks, renewed attention to the scandal has focused on the state’s failure to identify and halt the theft before it spun out of control. Conservative politicians and bloggers have alleged the state’s liberal establishment was cowed into inaction by intimidation from Feeding Our Future, which contracted within the state’s large Somali community — because the food charity sought to paint early scrutiny of the nonprofit as racism.
Well before the pandemic, state officials told CBS News that they began experiencing tension with the woman later convicted of masterminding the fraud, Aimee Bock. They began documenting her “concerning behavior.” One former employee told CBS News that Bock almost immediately began pressuring state workers who might have had follow up questions or concerns before processing reimbursements.
Within weeks of Feeding Our Future’s first submissions to the state, Minnesota workers also recognized that the charity was claiming to serve meals in numbers that were “not consistent” and “not realistic,” one official told CBS News.
Then the pandemic took hold. The officials told CBS News the scheme rapidly accelerated. Safeguards fell away — removed intentionally to insure residents in need did not go hungry.
But as state workers asked more questions — and even stopped payment on some receipts — Feeding Our Future ratcheted up pressure in response. In 2020, the charitable group filed a lawsuit alleging the state had “harmed Feeding Our Future by subjecting it to additional procedural hurdles in violation of federal regulations.”
The state “intentionally and wrongfully refuse[d] to do business with Feeding Our Future and the community it serves by discriminating … because of Feeding Our Future’s race, national origin, color, and religion.”
A judge dismissed the civil case after the FBI executed search warrants on Feeding Our Future and made public its investigation in January 2022.
The entire episode played out in the aftermath of the murder of George Floyd by a Minneapolis police officer, as racial tensions ran high.
Seven months later, federal prosecutors first announced criminal charges against 47 people in the Feeding Our Future scandal. The number charged grew to 78 in total, and 59 have since been convicted, including Bock, who is awaiting sentencing.
Reached by phone on Thursday, Bock’s attorney Kenneth Udoibok said his client plans to appeal her conviction. He denied Bock exerted pressure on state officials so they would not properly scrutinize meal claims.
“That doesn’t meet the smell test,” Udoibok said. “A government agency with all its resources, and its reputation is afraid of Amy? That is just rich. It’s a lie.”
Udoibok said the state Department of Education employees leveling the accusation weren’t acknowledging their own role in the massive fraud.
“No one in the state of Minnesota, no one in the Department of Education has taken any responsibility for this fraud that they allowed to go through,” he said
While Bock, who is White, was described by investigators as the mastermind, most of the other defendants and alleged co-conspirators are Somalis, provoking fresh attacks from the Trump administration against the state’s large Somali community.
In recent days, President Trump has claimed Somali migrants “ripped off” Minnesota and has referred to the state as a “hellhole.” He has called people from Somalia “garbage” who “contribute nothing” and said: “I don’t want them in our country, I’ll be honest with you.” This week, Immigration and Customs Enforcement began enhanced operations in the Minneapolis-St. Paul area, home to a large population of Somalis.
Walz on Thursday said Mr. Trump’s comments are “unprecedented for a United States president,” and he denounced Trump’s barrage of anti-Somali statements as “vile, racist lies and slander towards our fellow Minnesotans.”
Walz said on “Meet the Press” last weekend that the fraud cases are “totally disconnected” from the broader Somali community. “To demonize an entire community on the actions of a few, it’s lazy,” he said.
House Republicans on Wednesday launched an investigation into the governor’s handling of the fraud cases. Walz has long been criticized for being slow to act, but he has said his administration caught the fraud early and reported it first to the USDA, and then to the FBI.
Prosecutors have charged nearly a dozen others in cases involving other alleged COVID-related fraud in Minnesota. The schemes are alleged to have operated similarly to the original one focused on nutrition funds, but these involve housing assistance and behavioral health services.
Prosecutors in all those cases have charged an additional eight people, most of whom are Somali, bringing the total number charged to 87, with 61 convictions. Sources at the U.S. attorneys office tell CBS News the investigations are ongoing in all of the fraud cases, including Feeding Our Future, with the total amount of stolen money reaching more than $1 billion.
Minnesota
Minnesota colleges expand cannabis studies programs to build labor force in budding industry
Minnesota State Community and Technical College, or M State, which has schools across Northwest Minnesota, will also be expanding their offerings. M State was the first two-year college in greater Minnesota to offer cannabis education. So both schools are partnering with the company Green Flower to offer the courses. So joining me now to learn more about this is the CEO of Green Flower, Max Simon. Hi, Max.
MAX SIMON: Hi there.
NINA MOINI: Thank you for being here. Also very happy to have Sean Collins, who’s the director of Workforce Development Solutions at M State. Thanks so much for your time this afternoon, Sean.
SEAN COLLINS: Yeah, great to be here.
NINA MOINI: Max, I wanted to start with you, if I could. Would you tell us a little bit about Green Flower and the types of courses you offer?
MAX SIMON: Yeah, Green Flower is a decade old cannabis education leader. And we develop programs that help people enter the different sectors of the cannabis industry, because there’s all these different places where people can play a role and need dedicated training to be able to enter the industry.
NINA MOINI: Yeah, tell me a little bit about– I see there are five pathways here, because people are probably like, what am I exactly studying? Tell me what those are.
MAX SIMON: Yeah, the cannabis industry is a lot more complex and interesting than most people realize. Yeah, these five sectors. There’s cultivation, which is growing plants in the ground. There’s a product development sector, where you’re actually taking products from the plant material and making them into edibles, and topicals, and medical products.
There’s a retail and sales program, which is all about the customer-facing and sales-facing side of the industry. There’s a medical cannabis program because at least 50% of the people that are coming to cannabis today are coming from medical and health and wellness reasons. And then there’s a compliance program, because it’s a very heavily regulated industry. And every cannabis company on Earth requires a compliance expert to navigate the challenges of running a legal industry.
NINA MOINI: Wow, that’s fascinating. Sean, why was this something that you wanted to offer at M State. Is there a lot of interest?
SEAN COLLINS: Yes, there has been a lot of interest. And M State really wanted to offer this program because it is an emerging industry. But similar to industries like the alcohol industry, there’s a lot of compliance that needs to happen, a lot of legal things that need to be followed.
And so since cannabis is legalized and here to stay, we wanted to be the organization that can actually provide that solid training for the workforce. So that they can go in and be confident in their jobs, and also do this legally and follow all the regulations that are needed.
NINA MOINI: Yeah, I’m hearing so much about regulations from both of you guys and all the nuances of the industry. And I wonder, Max, if that’s why people can’t just take, I guess, regular business classes? Or do you think that’s part of it?
MAX SIMON: Definitely a part of it. There’s a lot of stigma related to cannabis and a lot of misinformation. But when you get down to the science, the business, the compliance, the operations, it’s a very complex industry.
It really is heavily regulated. It’s a difficult plant to grow. It’s a difficult substance to work with in product development. And such a huge variety of different people come to cannabis for so many different reasons. And so this is why this specialized training is so important, because to work in this industry, you really need to understand the industry.
NINA MOINI: And to your point there, does that impact who is teaching the courses?
MAX SIMON: Absolutely. So all of these programs are literally taught by people that are operating businesses and working inside of the industry. We realized that we couldn’t have theoretical teachers or people that were just looking at it from the outside. You needed people that were there doing this work on the inside. So every program is actually facilitated by these instructors who come from the cannabis industry and are operating in it in a daily basis.
NINA MOINI: And I wonder, Max, if from when you said you started 10 years ago with these efforts, what has that evolution been like? What a 10 years.
MAX SIMON: I mean, the amount of acceptance, adoption, legalization, and progress that cannabis has had over the last decade is literally staggering. And to see now that this is something that’s so commonly accepted, that’s so widely used, and that is growing so quickly, it’s a fun thing to be a part of today.
NINA MOINI: Sean, why do you think this appeals to students there in greater Minnesota, too?
SEAN COLLINS: I think a lot of it has to do with the younger generation that has grown up with cannabis being more in the public eye. So the subject has been a lot more open to the public eye. As he mentioned, there is a bit of a stigma with cannabis. But we do think the younger generations don’t have that same stigma.
And so being able to provide this training to these younger generations to get into the field, and especially into a field that is growing and is actually paying good wages, that’s really important to us. And so, yeah, it’s been a great partnership with Green Flower. They provide fantastic training. And we love working with them and providing actual good, solid training that is getting people jobs as soon as they complete these courses.
NINA MOINI: Yeah, and Sean, tell me a little bit, if you would, about this idea of the certification. Because we know that some trends show in higher education enrollment struggles in different areas. But this isn’t as huge of a commitment in time. Tell me about this idea of the industry certification.
SEAN COLLINS: Yeah, so we are seeing a bit of a trend away from four year degrees. That’s why community and technical colleges like M State are actually seeing an uptick in enrollment for some of these more hands-on things, two-year programs.
But then on the other side, outside of the credit side of the school, on the non-credit side, which is my side of the house, we’re seeing a lot of people that are just trying to get into valuable industries quickly. And so industry recognized certifications are very, very important in that.
And so by a student attending these courses and having the certification, they can go to an employer and say, hey, I am already trained and come off– come out of there with a good job offer and the requisite skills needed to do that job. The fact that it’s an accelerated course really, really helps out also with the growth of the industry, because the industry is not waiting for someone to get a two-year degree just to enter the industry.
NINA MOINI: Fascinating. Just before we have to go, I did want to ask you about this, Max. Last month, the President Donald Trump, set in a motion and a process to move marijuana from a Schedule I drug, which includes, like heroin, LSD to Schedule III drug, which, again, puts it in a lower risk category for folks who don’t know. What impact do you think this will have on your company and schools that want to offer this type of education program?
MAX SIMON: Yeah, it has a huge impact because it really signals that this is an industry and a substance that isn’t as scary as we once thought it was. But it also creates a much more friendly regulatory environment for companies to be able to grow.
It creates a lot more access for research. And it really sends a loud signal that this is something that we should look at as a more favorable, and positive, and beneficial substance to society, whereas historically, it’s only been looked at and treated as something that’s bad for you.
NINA MOINI: And Max, do you think there ever would be like a two-year or a four-year degree type of program for people who are interested in that?
MAX SIMON: I do. But I also– these programs are only 16 weeks long. And we find that people that are looking to just get into the industry, and get jobs, and switch their careers, really love this short form credential. And so I think that these shorter certificate programs really work well to serve the industry as it is today.
NINA MOINI: One more question for you, Sean. Do you feel like there are jobs out there for people who go through this 16 weeks? Is it like, oh, boom, I’m going to get a job right away?
SEAN COLLINS: In fact, I actually had a former employee at my previous employer who left our employer to go take one of these courses. And he was hired pretty much immediately after completing the course. He did the retail specialist side. And he was hired by a dispensary here in town pretty much immediately. And he was actually making– he came from an IT position. And he was actually making a wage that was equivalent to that position he left.
NINA MOINI: Wow lots developing, lots growing there. [LAUGHS] Thank you both so much for your time and for coming by Minnesota Now. We hope you’ll come back sometime.
[PHONE RINGS]
Oh, looks like you got to take a call. All right, thanks to both of our guests, Sean Collins, the director of Workforce Development Solutions at M State, and Max Simon, the CEO of the cannabis education program Green Flower.
Minnesota
Reshuffled Minnesota governor’s race after Walz exit will pose challenges for both parties
Minnesota
Over 1,000 arrested in ‘massive’ Minnesota operation, including murderers, rapists, pedophiles
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Federal authorities have arrested more than 1,000 in Minnesota, including alleged murderers, rapists, pedophiles and gang members, after sending a surge of agents to the state in its “massive” response to the rampant fraud still being uncovered.
Assistant Homeland Security Secretary Tricia McLaughlin told Fox News Digital that since the agency “surged law enforcement” to Minnesota last week, it “has already made more than 1,000 arrests of murderers, rapists, pedophiles, and gang members.”
DHS said that among those arrested was a Somali criminal illegal alien named Liban Ali Osman, 43, who the agency said was convicted of robbery in Columbus, Ohio. Osman was sentenced to three years in prison and has had a final order of removal since May 17, 2011.
Another, Vannaleut Keomany, a 59-year-old criminal illegal alien from Laos, arrested in the crackdown, was convicted of two counts of rape, also in Columbus. DHS said Keomany was sentenced to seven years in prison and has had a final order of removal since Dec. 17, 2009.
FRAUD FALLOUT FORCES DEMOCRATIC GOV. TIM WALZ TO ABANDON MINNESOTA RE-ELECTION BID
Homeland Security investigators were part of a large fraud investigation on Monday in Minneapolis following the release of a video on alleged day care fraud. (Department of Homeland Security)
Federal agents also arrested another Laotian, Por Moua, 50, during the operation. Moua has convictions for first-degree great bodily harm, sexual intercourse with a child in California, and false imprisonment.
A third Laotian, Sing Radsmikham, 52, was arrested in the operation and has been convicted of fourth-degree criminal sexual conduct using force or coercion in Roseau County, Minnesota. He has had a final order of removal since 2004.
Tou Vang, a 42-year-old from Laos, was arrested and has been convicted of first-degree criminal sexual conduct with a child under 13. Vang has had a final order of removal since 2006.
Somvang Phrachansiry, a 63-year-old from Laos, was arrested. He has been convicted of third-degree criminal sexual conduct and second-degree assault with a dangerous weapon and has had a final order of removal since 2001.
Javier Bulmaro Turrubiartes, a 49-year-old criminal alien from Mexico, was arrested in Minnesota. Turrubiartes has previously been arrested for soliciting children through electronic communication to engage in sexual conduct and convicted of hiring or agreeing to hire a child under 16 for prostitution.
ICE BLASTS HILTON AFTER EMAILS ALLEGEDLY SHOW HOTEL REFUSING ROOMS TO IMMIGRATION AGENTS
Left to right from top: Ban Du La Sein, Vannaleut Keomany, Sing Radsmikham, Liban Ali Osman, Tou Vang, Por Moua, Javier Bulmaro Turrubiartes, Somvang Phrachansiry, Angel Edwin Quiquintuna Capuz and Joel Cuautle-Ocelotl. (Stephen Maturen/Getty Images; DHS)
Another illegal from Mexico, Joel Cuautle-Ocelotl, 51, was nabbed in the roundup. He has been convicted of third-degree assault with intent to cause physical injury in New York and driving while impaired in Minnesota.
Ban Du La Sein, a 47-year-old from Burma who has been convicted of third-degree criminal sexual conduct using force or coercion in Nobles County, Minnesota, was also arrested.
Angel Edwin Quiquintuna Capuz, a 26-year-old from Ecuador, was arrested by federal agents. Capuz has previously been convicted of robbery in Columbus and been arrested for driving while intoxicated, assaulting a police officer, obstructing the legal process and disarming a peace officer.
DHS surged roughly 2,000 federal agents and officers from U.S. Immigration and Customs Enforcement’s deportation branch and Homeland Security Investigations, according to CBS News. The outlet reported the operation will be a 30-day surge in the Twin Cities area. It also said that U.S. Customs and Border Protection Commander Gregory Bovino will help oversee the operation.
McLaughlin said that “while for the safety of our officers we do not get into law enforcement footprint,” she confirmed that “DHS has surged law enforcement” to the Twin Cities area.
KLOBUCHAR WEIGHING RUN FOR MINNESOTA GOVERNOR AS WALZ ENDS RE-ELECTION BID AMID FRAUD SCANDAL
Agents with the Department of Homeland Security in a Minneapolis store. The agency said it had launched an operation to identify, arrest and remove criminals who are suspected of fraud. (Department of Homeland Security)
Minnesota has come under intense scrutiny in recent weeks after authorities revealed multimillion-dollar fraud operations in the state, resulting in dozens of arrests and indictments.
Last week, Homeland Security announced it was launching a “massive operation” in Minnesota to “identify, arrest, and remove criminals who are defrauding the American people.”
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The announcement came after the release of a video by an independent journalist who questioned daycare center operators in the area.
In an X post, the agency vowed to “root out this rampant fraud plaguing Minnesota.”
Fox News Digital’s Luis Casiano contributed to this report.
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