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New York Republicans call for independent fraud investigation following Minnesota revelations

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New York Republicans call for independent fraud investigation following Minnesota revelations

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Republican state senators in New York on Friday wrote a letter to Gov. Kathy Hochul urging her to launch an independent investigation into possible fraud involving government programs in response to similar allegations in Minnesota.

“We write to you concerning disturbing reports of widespread fraud involving taxpayer dollars in the state of Minnesota, including schemes that reportedly involved sham daycare centers and other illegitimate entities,” the letter, signed by 12 Republican state senators, said.

The letter added that the “revelations” in Minnesota “raise serious concerns about the vulnerability of publicly funded programs to abuse.”

TRUMP TARGETS MINNESOTA FRAUD ALLEGATIONS, SAYS ‘WE’RE GOING TO GET TO THE BOTTOM OF IT’

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Republican state senators in New York on Friday wrote a letter to Gov. Kathy Hochul urging her to launch an independent investigation into possible fraud involving government programs following similar allegations in Minnesota. (Adam Gray/Getty Images)

The senators urged Hochul to “immediately retain an independent private professional services firm to conduct a comprehensive audit of comparable programs in New York State.”

MINNESOTA FRAUD COMMITTEE CHAIR CLAIMS WALZ ‘TURNED A BLIND EYE’ TO FRAUD WARNINGS FOR YEARS

The letter said that the audit was necessary “to ensure that public funds are being distributed solely to legitimate organizations and eligible individuals and to identify and address any instances of fraud, waste or abuse.”

“Given that New York administers comparable programs involving billions of taxpayer dollars it is imperative that proactive measures be taken to ensure similar abuses are not occurring here,” the letter said.

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The Small Business Administration announced the suspension of nearly 7,000 Minnesota borrowers after identifying hundreds of millions of dollars in suspected pandemic loan fraud this week.  (Bill Clark/CQ-Roll Call, Inc via Getty Images)

The senators noted $68 million in Medicaid fraud that the U.S. Department of Justice said it uncovered at a Brooklyn operator of social adult daycare centers in July. 

“At a time when resources are strained, it is essential that available funds are protected and directed exclusively to those who truly need assistance,” they added.  

The senator said that with reports that Hochul’s office plans to advance a proposal for universal pre-kindergarten in the next legislative session, “ensuring these programs are efficient, transparent and free from fraud should be a shared priority for all New Yorkers.” 

The Small Business Administration announced Thursday that it had suspended 6,900 Minnesota borrowers after uncovering what it says is widespread suspected fraud in the state.

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SBA Administrator Kelly Loeffler sent a letter Tuesday to Minnesota Gov. Tim Walz on Dec. 23, telling him that her agency will “halt” more than $5.5 million in annual support to resource partners in the state “until further notice.” 

“I am notifying you that effective immediately and until further notice, the SBA is halting the disbursement of federal funds to SBA resource partners operating in the state of Minnesota, totaling over $5.5 million in annual support,” Loeffler wrote.

The SBA said that at least $2.5 million in PPP and EIDL funds issued during the pandemic era were connected to a Somali fraud scheme based in Minneapolis.

Loeffler told Walz that $430 million in PPP funds tied to roughly 13,000 loans were flagged as potentially fraudulent but were still funded anyway, including some that were forgiven during the Biden administration.

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“The volume and concentration of potential fraud is staggering, matched in its egregiousness only by your response to those who attempted to stop it,” she wrote.

Hochul’s office told Fox News Digital in response to the letter: “This is a rich political stunt coming from the lawmaker who spent months fighting the Governor’s efforts to route out waste, fraud and abuse in the state’s Medicaid program,” referencing GOP State Sen. Robert Ortt. “Instead of suggesting we spend taxpayer dollars to do the jobs of the State Comptroller and State Inspector General, the Minority Leader should focus on supporting the many longstanding initiatives that the Governor has advanced to stop fraud and protect taxpayers.”

 

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New York

Mystery Grows Around Representative Thomas Kean Jr.’s Absence

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Mystery Grows Around Representative Thomas Kean Jr.’s Absence

Where is Representative Thomas Kean Jr.?

Lately, curious political watchers have noted where Mr. Kean is not. He seems to be absent on Capitol Hill, where he represents the people of New Jersey’s Seventh District but hasn’t cast a vote in more than two months. Mr. Kean, a Republican, has not been seen on the campaign trail as he runs for re-election in a competitive midterm race.

He has not appeared in pixel form, either: No candid photos have emerged of the incumbent to allay the worries of donors and constituents. Two weeks ago his office released a written statement, attributed to Mr. Kean, explaining that he was dealing with a “medical issue” and would be back “very soon.”

Since then? No reported sightings.

Mr. Kean’s social media accounts have remained active in his prolonged absence. The posts are often written in the first person, but paired with older photos.

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“What we are being assured is that his team is carrying the torch,” Tina Shah, who is vying for the chance to unseat Mr. Kean, said on Tuesday at a debate with three other Democrats. “But we elected Tom Kean Jr., not his team.”

Members of Mr. Kean’s team were seated conspicuously in the third row, watching as the Democrats took turns weighing in on their boss’s mysterious absence. Afterward, his chief of staff, Dan Scharfenberger, reiterated a now familiar explanation.

“He’s dealing with a personal health condition, and he’ll be back soon,” Mr. Scharfenberger said in an interview.

When pressed on the nature of the health condition and why Mr. Kean had not been seen in New Jersey or in Washington, Mr. Scharfenberger said, “There’s no cameras where Tom is.”

He declined to elaborate.

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National Democratic officials see Mr. Kean’s district — a largely affluent and suburban region that stretches like a girdle across North Jersey from its eastern shoreline to its western border with Pennsylvania — as one of the party’s best pickup opportunities in November. And Democrats had been aggressively targeting his seat well before Mr. Kean began missing votes.

“He’s going to be totally fine, and he’ll be back to a full schedule soon,” Harrison Neely, Mr. Kean’s spokesman, said on Tuesday.

Soon may not be imminent. The Morris County Chamber of Commerce has amended the program for a May 28 breakfast meeting focused on Washington policies, saying that Mr. Kean will no longer be speaking at the event.

“As you no doubt have heard, Congressman Kean will be unable to appear due to his ongoing health concerns,” a notice posted on the chamber’s website states. “We wish him well.”

Mr. Neely had no immediate response on whether the congressman had canceled other similar events.

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Democrats vying for the Seventh District seat have seemed cautious about attacking Mr. Kean, perhaps aware of the political risk of going after a man whose condition is not known. But at Tuesday’s debate, a few of them offered some measured criticism about the Republican’s lack of transparency.

“Look, at the end of the day you’re a public servant,” said Brian Varela, who owns child care centers and is campaigning to abolish the Immigration and Customs Enforcement agency. “And while I don’t think you need to be putting your own personal medical history out there, you at the very least have a responsibility to be communicating with your constituents and with your district.”

Michael Roth, who helped to lead the Small Business Administration during the Biden administration, said most workers would be required to be more transparent with their employers if they needed to take two months off.

“If you were missing work, you would tell your boss,” he said. “And Tom Kean Jr.’s boss is the people.”

Rebecca Bennett, a former Navy helicopter pilot who has worked as a strategist for health care companies, avoided discussing Mr. Kean’s absence and instead said the election was about the job Mr. Kean had been doing before he disappeared from public view.

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Mr. Kean is the only Republican on the June 2 primary ballot. If he had exited the race at least 62 days before the primary, a three-person team of campaign advisers would have filled the vacancy. Republican leaders from the district’s six counties would select a nominee if he were to drop out after the primary. His aides maintain that the congressman has no plans to bow out.

Leonard Lance, a moderate Republican who lost re-election in the Seventh District in 2018 after five terms in Congress, said the loss of any of the state’s three G.O.P. House members would be a blow to New Jersey’s historically centrist core. But he said he believed Mr. Kean was still the best candidate “by far” to fend off what is likely to be a fierce Democratic challenge.

“I take at face value the statement of his office that he will be back at 100 percent,” Mr. Lance said.

There were no reported sightings of Mr. Kean on Wednesday, the day after the debate. However, the congressman’s X account did post an update on his activities.

“I’m pleased to join the Congressional Crypto Caucus,” the post said. “The United States must lead on digital assets — driving innovation, delivering regulatory clarity and protecting consumers. I look forward to working with this bipartisan group of colleagues to advance that agenda.”

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Kirsten Noyes contributed research.

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Boston, MA

Weekend Happenings: Panda Fest and more

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Pittsburg, PA

A Bethel Park homeowner paid a contractor nearly $3,000 to repair his porch. He says no one showed up.

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A Bethel Park homeowner paid a contractor nearly ,000 to repair his porch. He says no one showed up.


A Bethel Park homeowner says he’s out thousands of dollars after hiring a contractor to replace his front porch. 

Jeffrey Markoff says he hired Quaker State Construction and Supply for an $8,500 porch replacement project and paid a $2,833 deposit to secure a spot on the company’s schedule. According to paperwork reviewed by KDKA Investigates, the contract listed an approximate start date in the spring with an estimated completion time of two weeks.

Months later, Markoff says no construction crew ever arrived. He then tried to contact the owner, Gabe Clouse.

“I call the company number, and there’s no answer. The number had been disconnected, called the designer, and he gave me the cell number for the owner,” said Markoff.

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When asked if he ever heard back, Markoff responded: “Never heard back and called that number twice.”

Markoff says losing the money has been frustrating.

“It’s money out of your pocket you feel somebody stole from you,” said Markoff.

KDKA Investigates took Markoff’s concerns to attorney Mike Fiffik of the Fiffik Law Group, a LegalShield provider firm, to find out what consumers can do in situations like this.

“In this situation, he has a couple of different options available to him,” said Fiffik. “If he paid the deposit with his credit card, the federal Fair Credit Reporting Act will permit him to submit a dispute.”

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That process is known as a chargeback and is generally most effective when initiated within 60 days of receiving the statement. However, Markoff paid by check, meaning that the option was unavailable to him.

Instead, Fiffik recommends several other steps consumers can take:

  • Contact local police and report the incident as a theft
  • File a complaint with the local magistrate if the amount lost is under $12,000
  • File a complaint with the Pennsylvania Office of Attorney General

When asked where homeowners should file if the contractor lives elsewhere, Fiffik said, “I would file with the magistrate where the homeowner lives.”

KDKA Investigates also attempted to contact Clouse multiple times, but our messages were not returned.

KDKA Investigates learned Clouse recently took over Quaker State and Supply as the new owner. The previous owner told KDKA he sold the business to Clouse in 2024, when the company still held an A-plus rating with the Better Business Bureau. The business is now listed as closed.

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