Midwest

Noem puts Newsom on notice, vows California probe after Minnesota fraud bust

Published

5 months ago

January 8, 2026

Noem puts Newsom on notice, vows California probe after Minnesota fraud bust

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Homeland Security Secretary Kristi Noem warned California Gov. Gavin Newsom that federal investigators are headed west after uncovering what she described as massive fraud in Minnesota public programs.

“We’re going to come to you, Governor Newsom, and we’re going to arrest every single individual that has ties to this kind of stealing of taxpayer dollars, and we will hold them accountable,” Noem said on “Jesse Watters Primetime” on Tuesday.

“We’ll bring them to justice.”

MINNESOTA FRAUD CASES, EXPLAINED: HOW HUNDREDS OF MILLIONS ALLEGEDLY SLIPPED THROUGH STATE PROGRAMS

Secretary Kristi Noem said she intends to investigate fraud in California under Democratic Gov. Gavin Newsom. (Nelvin C. Cepeda/The San Diego Union-Tribune; Arnold Jerocki/Getty Images)

Noem’s warning came one day after President Donald Trump called California “more corrupt than any place,” including Minnesota. Newsom responded Monday, saying he welcomes “partnering” with the president on the issue.

“If he has some unique insight and information, I look forward to partnering with him. Can’t stand fraud, can’t stand waste and abuse,” he told MS NOW.

Recent Homeland Security operations in Minnesota revealed widespread fraud tied to public assistance programs and saw “hundreds and hundreds” of arrests.

Noem said she thinks the scandal is “just the tip of the iceberg.”

“It is leading us to networks all over the country and overseas, and we’re gonna follow every single one of them.”

The fraud, which Noem called “unprecedented,” involved criminals allegedly siphoning money meant for Medicaid and developmental services to fund “luxury homes and vacations.”

She accused Minnesota Gov. Tim Walz of ignoring warnings from state employees who raised concerns about fraudulent businesses and nonprofits collecting government funds, and said Democrats attempted to cover it up.

NEW YORK REPUBLICANS CALL FOR INDEPENDENT FRAUD INVESTIGATION FOLLOWING MINNESOTA REVELATIONS

Secretary Kristi Noem claims Democratic Minnesota Gov. Tim Walz ignored state employees raising red flags about fraud. (Christopher Mark Juhn/Anadolu via Getty Images)

The largest case, known as the “Feeding Our Future” scandal, centers on a Somali-linked nonprofit accused of exploiting federal child nutrition programs. More than 70 defendants have been charged to date.

Additional cases involve alleged fraud in Minnesota’s Housing Stabilization Services program, an early autism services program, and the Integrated Community Supports program, which provides assistance and training to people with disabilities living independently in the community.

The investigations are being led by the FBI, IRS Criminal Investigation, Homeland Security Investigations, the Department of Health and Human Services Office of Inspector General, and the U.S. Postal Inspection Service, according to the Justice Department.

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Noem said the Minnesota operations also led to arrests for violent crimes, including murder and sexual assault.

“We arrested a murderer, someone who was extorting money in other countries and also sexual assault perpetrators, individuals who were attacking children,” Noem said.

Fox News Digital’s Charles Creitz contributed to this report.

Max Bacall is an Associate Editor for the Flash/Media/Culture team at Fox News Digital.

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Detroit, MI

Another bribery scandal hits Detroit. It involves the People Mover

Published

2 hours ago

June 3, 2026

Press Room

Another bribery scandal hits Detroit. It involves the People Mover

A former Detroit People Mover official is accused of accepting $300,000 in bribes.
The official allegedly approved phony invoices for IT work that was never performed.
The businessman who submitted the invoices owned a home restoration company with no IT experience.

More than a decade ago, a juror in a Detroit public corruption trial that ended with three men getting convicted in a $97 million bribery scheme exclaimed: “Hopefully this is the end of this nightmare … this is a whole new beginning.”

It didn’t quite go that way as the following years saw two city councilmen indictments, a dozen school principal bribery convictions, a towing scandal, as well as a toxic dirt and demolition fiasco.

And now there’s this.

In a new criminal filing in U.S. District Court, a former city official in charge of the Detroit People Mover shuttle is charged with taking $300,000 in bribes from a businessmen who reportedly billed the city for work that was never performed — all with the help of his connected associate.

According to a criminal complaint unsealed Tuesday, June 2 in U.S. District Court, the alleged scheme involves 55-year-old Michael Anderson, a former director with the Detroit Transportation Corporation, who allegedly helped Detroit businessman Terrence Parker bill the city for nearly $305,000 in information technology work that was never performed.

Moreover, court records show, Parker’s company has no experience with IT work, but rather performs restoration work on homes damaged by storms and natural disasters. Still, the FBI says, Parker managed to submit 22 phony invoices to the DTC for IT work, including fixing computer monitors — and got paid for all of it. That’s because Anderson was approving his phony invoices from the inside, the government says, and getting money in exchange for his help.

Anderson and Parker both are charged with conspiracy and federal program theft/bribery and face up to 10 years in prison, if convicted. They were released on bond following their initial appearances in U.S. District Court. Their court-appointed lawyer could not be reached for comment.

According to the complaint, Anderson, who was hired by the city in 2022, was in charge of overseeing People Mover operations until he was fired in April for conduct unrelated to the pending criminal case. Parker owns a business called Total Care Restoration (TCR), which performs restoration work on homes damaged by fire, water, windstorms, or other elements.

According to the government, Parker was billing the DTC for information technology services, even though his company has no experience in that field, nor has it ever submitted a bid proposal to the city for such work, or signed any contract with the DTC.

Still, the government alleges, between 2023-25, the DTC paid nearly $305,000 to TCR for 23 invoices it had submitted, 22 of those invoices charged for IT services.

“Anderson approved the invoices and Parker deposited the checks into TCR’s bank account. TCR did not submit any invoices or receive any payments before Anderson was hired as Procurement Director. Likewise, TCR did not submit any invoices or receive any payments after Anderson was fired as Procurement Director,” the complaint states.

According to the government, Anderson did actually procure and manage IT contracts with a number of companies while he worked for the DTC. But TCR was billing the city for work that those companies had been contracted to do.

“At least six TCR invoices listed work that was actually contracted to (another company),” an FBI agent wrote in his affidavit attached to the criminal complaint.

Also noteworthy, the FBI agent writes: “Most of TCR’s invoices contained a charge for debris removal. In my experience, debris removal is a common line item for restoration projects but not for IT work.”

According to the complaint, the FBI figured out that Parker was funneling money to Anderson by reviewing their bank records, and noticing that their deposits and withdrawals coincided. For example, on Aug. 16, 2024, Parker deposited a DTC check for $23,934 and withdrew $18,000 cash. That same day and over the next several days, Anderson made cash deposits into his account for $1,500, $1,300, $1,000, $700 and $1,850.

“There is probable cause to believe that Parker paid Anderson a portion of the money from the TCR invoices,” the FBI agent writes.

Contact Tresa Baldas: tbaldas@freepress.com

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Milwaukee, WI

MPS staffer who got plea deal in slapping case had earlier incident

Published

3 hours ago

June 3, 2026

Press Room

MPS staffer who got plea deal in slapping case had earlier incident

A former Milwaukee Public Schools paraprofessional received a deferred plea agreement for slapping a special education student.
Personnel records show the paraprofessional, Demitrios Visvardis, was accused of slapping another vulnerable student a year earlier.
Milwaukee Public Schools did not report the first incident to the police, according to department records.

When family members of a special education student voiced displeasure with a deferred plea agreement for former MPS paraprofessional Demitrios Visvardis in February, they were told it was fair given his lack of prior offenses.

Visvardis was charged with battery four months earlier in connection with an incident involving Shrone Dunn, 18, of Riverside High School.

“This ain’t nothing but a slap on the wrist,” Tyrone Dunn, Shrone’s father, said during the plea hearing. “We’re looking for justice.”

Milwaukee County Judge David Borowski assured Dunn of District Attorney Erin Karshen’s ability to fully prosecute based on what was known.

But records obtained by the Journal Sentinel through an open records request raise questions about Visvardis’s history, and how much was known before the plea deal was reached.

Visvardis has no prior criminal record, but documents in his personnel file at Milwaukee Public Schools reference a 2024 accusation that he struck a special education student.

In a December 2025 letter filed after a disciplinary hearing, MPS hearing officer Natalie Fluker said the November 2025 incident involving Shrone Dunn was “the second time in a year that [Visvardis has] been accused of slapping a vulnerable student.”

The letter references findings made by hearing officer Gary Johnson during disciplinary proceedings related to the 2024 incident.

Earlier incident also involved slapping

According to the December letter, another Riverside High School staff member expressed concern to Principal Jeff Lasky after witnessing Visvardis slap an intellectually disabled student on October 10, 2024. As with the incident involving Dunn, review of security footage confirmed the allegations.

Visvardis physically kept the student on a vent near an exit on the first floor of the school building despite the student’s multiple attempts to get up, according to the letter. Describing the footage, Johnson wrote, “The student appears to scream and you turn and slap him on the face. You then exit the hallway.”

Visvardis apologized for the incident, stating it was the worst thing he’d ever done.

Milwaukee Public Schools failed to report prior incident

According to the MPS employee handbook, the district generally follows a progressive discipline model that depends on the behavior and frequency of occurrences.

Johnson found the first incident to be “especially egregious, considering the unnecessary and excessive force” used on Student A and recommended a departure from the progressive discipline model. The departure meant Visvardis would be issued a three-day unpaid suspension and required enrollment in a course in nonviolent crisis intervention.

The school district did not directly respond to questions from the Journal Sentinel about whether the police were notified of the incident in 2024. It also declined to say whether Student A’s parents were informed or what steps were taken to protect the student following the incident.

“The safety of our students is our highest priority,” Stephen Davis, a media relations manager at Milwaukee Public Schools, told the Journal Sentinel in an emailed statement. “We cannot discuss the details of any personnel matter, and the current administration would not be able to speak about how a prior case was addressed in 2024.”

But according to Milwaukee Police Department records, no report associated with Visvardis exists since January 2021 beyond the report on his arrest on November 13, 2025. That’s the day after Riverside cameras captured footage of Visvardis slapping Dunn “with an open hand to the left side of face,” according to police records.

Review hearing scheduled for this week

Visvardis is due back in court on Thursday, June 4.

According to the deferred prosecution agreement obtained by the Journal Sentinel, he will be eligible to seek employment in a “school, group home or any other place of employment where he would interact with other vulnerable people” this month, given successful completion of an anger management treatment program.

Meanwhile, the Dunn Family has filed a lawsuit against the City of Milwaukee, Milwaukee Board of School Directors, and Visvardis.

April Quevedo covers Metcalfe Park for the Journal Sentinel’s Neighborhood Dispatch. Contact: aquevedo@usatodayco.com.

Neighborhood Dispatch reporting is supported by Northwestern Mutual Foundation, Journal Foundation, Bader Philanthropies, Greater Milwaukee Foundation, and reader contributions to the Journal Sentinel Community-Funded Journalism Project. Journal Sentinel editors maintain full editorial control over all content. To support this work, visit jsonline.com/support. Checks can be addressed to Local Media Foundation (memo: “JS Community Journalism”) and mailed to P.O. Box 85015, Chicago, IL 60689.

The JS Community-Funded Journalism Project is administered by Local Media Foundation, tax ID #36-4427750, a Section 501(c)(3) charitable trust affiliated with Local Media Association, and EnMotive, a subsidiary of USA TODAY Co.

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