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MN fraudsters blew taxpayer cash on luxuries out of reach for most Americans, feds say

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MN fraudsters blew taxpayer cash on luxuries out of reach for most Americans, feds say

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President Donald Trump and congressional allies are probing Minnesota’s sprawling “Feeding Our Future” fraud scheme and pressing federal agencies to recover millions in stolen taxpayer dollars, including funds that were used by convicted individuals in the scheme to finance purchases of luxury vehicles and homes that are out of reach for most Americans.

Republicans say the renewed investigations are necessary because, despite dozens of convictions, federal officials are still working to recover only a fraction of the stolen money — a process that has uncovered not only the high-end vehicles and homes but also designer goods, and large amounts of cash tied to the scheme. 

Meanwhile, city officials in Minneapolis are bracing for an influx of Immigration and Customs Enforcement (ICE) agents after the agency announced plans for a new operation in the state.

At issue is a $250 million fraud scheme that exploited a children’s nutrition program funded by the U.S. Department of Agriculture and overseen by the state of Minnesota during the COVID-19 pandemic, with the stated goal of providing food to school-aged children. 

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The scheme exploited the U.S. Department of Agriculture’s decision to waive many of its standard requirements for the Federal Child Nutrition Program during the pandemic, including relaxing its requirement for non-school-based distributors to participate in the program.

WHAT TO KNOW ABOUT MINNESOTA’S ‘FEEDING OUR FUTURE’ FRAUD AT THE CENTER OF TRUMP’S LATEST CRACKDOWN

FBI Director Kash Patel described the scheme in July as “one of the worst” in Minnesota history. (Getty Images)

Conspirators charged in the scheme falsely claimed to have served millions of meals to children during the pandemic, but instead used the money for personal gain, according to FBI and federal court documents reviewed by Fox News Digital.

They are also accused of fabricating invoices, submitting fake records, and falsely claiming to have handed out thousands of meals to children across hundreds of food distribution “sites” across the state — when many, in fact, had provided none at all. 

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At least 77 individuals in Minnesota have been indicted as part of the fraud scheme, as Fox News Digital previously reported, and it is believed to be the largest pandemic-era scheme in U.S. history.

According to FBI and court documents reviewed by Fox News Digital, many of the convicted fraudsters exploited the taxpayer fund to live lavishly — purchasing real estate, pricey vehicles and houses, and seeking to funnel additional funding into more fraudulent schemes to further exploit the government. 

One defendant, Abdiaziz Farah, was sentenced to 28 years in federal prison earlier this  year for his role in the Feeding Our Future scheme. 

According to FBI exhibits and court documents reviewed by Fox News Digital, Farah used his role as a co-owner of Empire Cuisine and Market to exploit the COVID-era nutrition program for millions of dollars in personal gain, which he used to purchase commercial property and real estate, including two lakefront lots, “with the aim of building himself a multi-million-dollar home.” 

FBI documents submitted to the court paint a picture of the goods that were seized — among them, six Rolex watches, cars, thousands of dollars in luxury clothing, designer purses,  and more. 

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Other funds were funneled abroad, a strategy that appears to have been by multiple fraudsters convicted in the case. 

“Farah further sent the taxpayer money he stole overseas, purchasing real estate in Kenya and a high-rise apartment building in Nairobi,” Justice Department officials said. “Farah laundered the fraud proceeds through China.  This overseas money is beyond the reach of American law enforcement—neither these funds nor Farah’s international real estate holdings have been, or can be, seized or forfeited.”

The federal judge overseeing the case described his fraud as “breathtakingly elaborate,” and said at the time of his conviction that he acted out of “pure unmitigated greed.”

Farah, she noted, had come to the U.S. as a refugee as a child and had received many opportunities from public agencies and nonprofits, including housing, a grant for full college tuition, and a former job in the public sector. “Given that background, it is ironic at best that, as the government aimed no child went hungry during the pandemic, you saw the opportunity to fraudulently make money,” she said after his conviction. 

Court documents, photos, and testimony provided at the trials have provided a window into the luxurious lifestyles many of the fraudsters had been leading as a result of the scheme.

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Federal authorities seized $64,000 in cash, gold jewelry purchased in Dubai, and four vehicles — including a brand-new Tesla and a Porsche — from one defendant’s home. 

Five individuals were separately convicted last year of attempting to bribe a juror with $120,000 cash in exchange for returning a “not guilty” verdict for one of the defendants. 

PATEL TOUTS FBI’S DOZENS OF CONVICTIONS IN $250 MILLION MINNESOTA COVID SCAM

Kash Patel appears before the Senate Judiciary Committee for his confirmation hearing as FBI director. (Ben Curtis/AP)

Others convicted are accused of having funneled money abroad into shell corporations, while at least some others appear to have spent the money to pay down their own credit card bills, or otherwise fund their “lavish lifestyles,” according to information provided by the Justice Department.

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In the case of Abdimajid Mohamed Nur, a defendant who was ordered to pay $48 million in restitution for his crimes, many of the stolen funds were sent to a shell company.

Nur is believed to have spent the bulk of the $900,000 in fraud proceeds not sent to the shell company on himself, to fund the purchase of new vehicles, fund a honeymoon trip to the Maldives, and in purchasing jewelry.

Treasury Secretary Scott Bessent said in an interview on CBS News’s “Face the Nation” Sunday that “a lot of money has been transferred from the individuals who committed this fraud.”

Much of the fraudsters’ proceed have “gone overseas,” he told host Margaret Brennan, “and we are tracking that both to the Middle East and to Somalia to see what the uses of that have been” as part of the Trump administration’s broader investigation into the funding that was sent abroad.

But the efforts to trace, let alone recover, many of the stolen funds have proved to be a bit slow-going. 

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To date, federal officials have recovered an estimated $60 million in funding that was stolen as part of the “Feeding Our Futures” scheme, according to estimates provided by the U.S. Attorney’s Office in the state — less than half of the $250 million in stolen funds.

The slow recovery effort is not for lack of trying. Last month, a federal judge in the state ordered one defendant to pay $48 million in restitution funds, in addition to a 10-year prison sentence he received as part of his role in the sprawling fraud effort.

Other individuals convicted have also been ordered to refund the government millions of dollars to recoup the stolen taxpayer funds.

Still, the process can be complex and difficult. That’s because recovering the stolen funds often involves tracing them to how they were spent — including U.S. properties and vehicles, and then seizing those items for forfeiture — which can contribute to the delay.

In some cases, individuals who were convicted of the crimes actually have family members still living in the homes they are accused of purchasing with the stolen funds.

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FBI Director Kash Patel described the scheme in July as “one of the worst” in Minnesota history. 

“These individuals misappropriated hundreds of millions in federal funds intended to nourish vulnerable children during a time of crisis, redirecting those resources into luxury homes, high-end vehicles and extravagant lifestyles while families faced hardship,” he said. 

TRUMP, STATES BACK IN COURT OVER SNAP AS BENEFITS REMAIN IN LEGAL LIMBO

Republican Speaker of the House Lisa Demuth speaks during a press conference in the governor’s reception room at the Minnesota Capitol in St. Paul, Minn., May 15, 2025. (Jerry Holt/The Minnesota Star Tribune via Getty Images)

 

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Charging documents show that roughly 300 “food sites” in the state served little or no food, with the so-called food vendors and organizations fabricated to launder money intended to reimburse the cost of feeding children.

Senior FBI officials told Fox News that the investigation and resulting trials and indictments continue to impact the state and have already touched off legislative reform in Minnesota.

They added that the investigation into the fraud remains ongoing, and that additional charges were expected. 

Stealing from the federal government equates to stealing from the American people — there is no simpler truth,” FBI’s special agent in charge, Alvin Winston, told Fox News Digital in a statement at the time.

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South Dakota

Trading property tax for sales tax: Legislature moves forward with parts of homeowner relief package

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Trading property tax for sales tax: Legislature moves forward with parts of homeowner relief package


PIERRE — Two pieces of a property tax reduction package prepared by South Dakota’s legislative leadership and the executive branch are moving forward, but one bill failed during votes on Monday as lawmakers began the final week of the annual legislative session.

The House of Representatives voted

42-27

in support of

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Senate Bill 245

, which would pull future revenue from a scheduled sales tax increase from 4.2% to 4.5% next year into a relief fund for homeowner property taxes, and use nearly $56 million in one-time money to seed the fund before the sales tax increase.

The Senate supported

House Bill 1323

, which would reduce the number of petition signatures needed to force an election on a local government’s decision to levy property taxes beyond limits set by the state. The Senate passed the bill 19-15.

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Both bills have to return to the opposite chamber for consideration of amendments.

The Senate rejected

House Bill 1253

, which would cap annual assessment growth for owner-occupied homes and commercial properties at 5% annually and reset assessments back to market value every five years. The bill failed with a 9-24 vote.

The bills are part of a broader,

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five-bill legislative package

targeted at property tax relief.

Another bill

in the package, which would allow counties to implement a half-percent sales tax with proceeds going to homeowner property tax credits, is awaiting the governor’s signature after he proposed it and it received both chambers’ approval.

The legislative budget committee is scheduled to consider a fifth piece of legislation in the package on Tuesday.

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The bill

would reduce maximum property tax levies for school districts.

Sales tax bill overcomes concerns about future budget needs

SB 245 would capture revenue from the impending sales tax increase to deposit into a “homeowner property tax reduction fund” meant to reduce property taxes levied by school districts. The Legislature and then-Gov. Kristi Noem reduced the state sales tax rate three years ago but scheduled the reduction to sunset in 2027.

House Speaker Jon Hansen, R-Dell Rapids, told lawmakers on Monday that the bill would be an “investment in the people,” because it’ll give South Dakota homeowners more money to spend as they choose. Hansen, the bill’s sponsor and a candidate for governor, said that would lead to more spending and, therefore, more sales tax revenue. The state relies on sales taxes, while counties and schools rely on property taxes, and cities receive revenue from property taxes and sales taxes.

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Some opponents said the legislation would favor wealthier, property-owning South Dakotans rather than lower-income renters.

Rep. Mike Weisgram, R-Fort Pierre, speaks on the House floor at the Capitol in Pierre on March 9, 2026.

(Photo by Makenzie Huber/South Dakota Searchlight)

Rep. Mike Weisgram, R-Fort Pierre, worried that automatically diverting future state revenue to reduce homeowner property taxes would come at the cost of other priorities, such as annual funding increases for state employees, Medicaid providers and public schools — which are known as the “big three” budget priorities. Lawmakers often

aim

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to increase funding for the groups by 3% or inflation, whichever is less. An inflationary increase this legislative session would be 2.5%, according to the state Department of Education.

“We are just clawing to get 1.4% for the big three,” Weisgram said. “I don’t think any of us are proud of that.”

Hansen said the decision “is not an either-or” situation.

“We can help the property taxpayers in the state who desperately, desperately need it,” Hansen said, “and then I trust fully that this state is going to continue to grow and that we are going to be able to meet the needs of our core obligations of this state.”

The bill was introduced as an amendment to placeholder legislation last week, and it will head to the Senate for approval. The Senate narrowly rejected a

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similar proposal

earlier this legislative session.

Senate approves lower signature threshold to force election on excess taxes

The version of House Bill 1323 that passed the Senate would set the number of petition signatures needed to force an election on an excess tax levy (often called an “opt-out”) for a local government at 2,500 or 5% of registered voters within its jurisdiction, whichever is less. The current threshold to refer decisions by a local government is 5% of registered voters in the district, without a 2,500 signature cap.

The bill’s sponsor, Sen. Taffy Howard, R-Rapid City, said it will still be difficult to refer decisions by a local government to voters.

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“You’re talking dozens and dozens of volunteers, weeks of organized effort,” Howard said. “There’s not a lot of people that have been through that and can even organize that kind of effort. So it’s not a trivial bar.”

Because the bill was amended since it last appeared in the House, it’ll now go to the House for approval.

HB 1253 intended to provide South Dakota homeowners and commercial property owners predictable increases in their property assessments, which factor into property taxes they pay, over five year periods.

But opponents said the change would shift the property tax burden onto farmers and ranchers and surprise homeowners every five years when assessments would be re-based on market value, which could lead to double-digit increases in assessments.

This story was originally published on

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SouthDakotaSearchlight.com.

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Wisconsin

Wisconsin Lawmakers Propose Ranked Choice Voting for All Elections

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Wisconsin Lawmakers Propose Ranked Choice Voting for All Elections


BELOIT, Wis. — State Senator Mark Spreitzer (D-Beloit) and Representative Clinton Anderson (D-Beloit) introduced LRB-5709 on March 5, legislation that would implement ranked choice voting for state, federal, and local elections in Wisconsin.

The Wisconsin legislation would also eliminate the need for February primaries in nonpartisan elections.

Today, voters in Wisconsin almost never elect independent candidates, because the state’s elections are decided by first-past-the-post plurality voting (FPPV). In this system, a voter’s expression of preference is restricted to a single candidate. Each voter has just one choice, and if there are more than two candidates in the race, winning by plurality rather than majority is quite possible. 

Consequently, no matter how attractive an independent candidate may seem in the spring, summer, and early fall of an election year, he or she will be tarnished as a “spoiler” on Election Day and will almost certainly lose. 

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This unfortunate situation reduces the supply of independent candidates willing to compete and perpetually forces Americans into one of two warring factions.

In contrast, ranked-choice voting (RCV) allows voters to express their true preference for each candidate by ranking them in order of preference. 

If no candidate wins an outright majority, the candidate with the lowest number of first-place votes is eliminated, and the second-preference votes of his or her supporters are redistributed to the remaining candidates. 

This “instant runoff” process continues until a majority winner is determined. Not only does RCV give voters “more voice” in elections, but it also has the potential to stop our political system from tearing us apart into two camps.

Senator Spreitzer called the bill an improvement over a system that forces strategic voting. 

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“Under ranked choice voting, voters can vote for the candidate they like the most instead of having to strategically vote against the candidate they like the least,” he said.

“It is a system that encourages positive campaigns, ensures that winners have the support of a majority of voters, and allows more candidates to run without being seen as a waste of a vote or a spoiler.”

Representative Anderson pointed to existing models as evidence that the system works. 

“Ranked choice voting is not a new idea. It’s already working in states like Maine and Alaska, and in cities like New York City,” he said.

“Our current system rewards candidates for tearing each other down instead of building broad support. Ranked choice voting changes that. It encourages campaigns focused on issues and coalition-building, ensures nominees win with a true majority, and creates space for more voices beyond the two-party system.”

For the best analysis of the pernicious effects of a lack of competition in our political system, please read The Politics Industry by Wisconsinite Katherine M. Gehl and her co-author, Harvard Business School professor Michael E. Porter.



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Midwest

What’s next for Kristi Noem? 2026 Senate chatter grows after DHS exit

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What’s next for Kristi Noem? 2026 Senate chatter grows after DHS exit

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President Donald Trump cut short Kristi Noem’s tenure at the Department of Homeland Security after weeks of internal turmoil. Now headed to a new envoy post, the onetime conservative star faces a pressing question: Can she stage a political comeback?

Noem was fired as the nation’s immigration chief after a turbulent stretch marked by internal clashes and two contentious congressional hearings where even some Republicans pressed her over leadership missteps. Trump announced on Truth Social that Sen. Markwayne Mullin, R-Okla., will replace her effective March 31, while Noem shifts to a newly created envoy role the president says he’ll detail this weekend.

An administration source told Fox News “it was time” to move on from Noem, citing internal feuding, staff mismanagement and controversies — including a $200 million ad campaign and fallout in Minnesota — that “overshadowed” Trump’s immigration agenda.

“Kristi’s drama sadly overshadowed and distracted from the Administration’s extremely popular immigration agenda, which will continue full force,” the source said. 

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KRISTI NOEM OUSTED FROM HOMELAND SECURITY POST AMID RECENT TURMOIL

DHS Sec. Kristi Noem meets with service members at a U.S. compound in Ecuador. (Pool/Getty Images)

Trump said Noem will be named “Special Envoy for The Shield of the Americas,” a newly created role he described as part of a broader Western Hemisphere security initiative. The White House has not yet detailed the scope of the position.

The reassignment comes as speculation grows in South Dakota over whether Noem could mount a primary challenge against Sen. Mike Rounds in 2026 — a move that would test whether her standing with Trump and GOP voters has truly eroded. 

Rounds, who is seeking a third term, secured Trump’s “complete and total endorsement” last year and is backed by Senate Republican leadership — a formidable barrier to any challenger. “He will never let you down,” Trump wrote in his endorsement, calling Rounds an “America First Patriot.”

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Fox News Digital reached out to Rounds’ office for comment.

Noem would enter any race with statewide name recognition and a deep political network, having served eight years in Congress before winning two terms as governor.

But some Republican operatives question whether her abrupt exit from DHS weakened her standing within Trump’s inner circle at a critical political moment. One GOP strategist involved in Senate races, who acknowledged that Noem was once a MAGA rock star, described a potential Senate bid at this time as a “suicide mission.”

The clock is already ticking. South Dakota’s filing deadline is March 31 at 5 p.m. CT, and candidates must gather roughly 2,200 petition signatures in just over three weeks to qualify for a June 2 primary. 

NOEM SLAMS DEMS BLOCKING DHS FUNDING BILL CITING TSA, FEMA, COAST GUARD: ‘I HOPE THEY COME TO THEIR SENSES’

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The speculation has drawn national attention. The Atlantic reported that pollsters in South Dakota were surveying a potential Rounds-Noem matchup, with one Republican source telling the magazine that the senator would “handily win” if challenged.

Rapid City’s ABC affiliate reported on the rumors of Noem’s ambitions in February, saying Republicans in her home state are watching to see if she would challenge Rounds.

Still, Noem has a fair share of powerful allies back home. Gov. Larry Rhoden, Noem’s successor in Pierre, commented Thursday that “Kristi is a dear friend and the toughest person I know.”

“When she shut down the border in record time, others were shocked, but I wasn’t. I knew what she was capable of.”

“She’ll deliver in her next role just as capably. I thank her for everything she’s done to keep South Dakota — and all America — strong, safe, and free,” Rhoden said.

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As governor, Rhoden worked with Noem’s DHS to make South Dakota one of the first states to enter a 287(g) agreement allowing state-level cooperation with ICE. Under the arrangement, the South Dakota Highway Patrol has been authorized to assist with immigration enforcement, and National Guard personnel have supported administrative functions — a record that could bolster her standing with conservative primary voters as speculation about her next move intensifies.

Fox News’ Peter Doocy contributed to this report.

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