Connect with us

Politics

Inside Minnesota’s $1B fraud: fake offices, phony firms and a scandal hiding in plain sight

Published

on

Inside Minnesota’s B fraud: fake offices, phony firms and a scandal hiding in plain sight

NEWYou can now listen to Fox News articles!

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.

Advertisement

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)

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

“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. 

Advertisement

“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

In 1960, fears over papal influence. In 2026, a president attacks a pope

Published

on

In 1960, fears over papal influence. In 2026, a president attacks a pope

It was hard to miss President Trump’s very public spat with Pope Leo XIV this week.

The split was the first time in modern memory that an American president has so openly badmouthed a sitting pontiff, or, for that matter, distributed an image depicting himself as Jesus Christ. Critics cried “blasphemy!” even as supporters continued to stand behind the man whose presidency, some argue, was God sent.

Students of American history will recall an earlier incident that pitted papal and presidential authority against each other. The concern: that a president would align himself too closely to the church, or even take orders from the pope.

That anxiety seeped into the 1960 presidential campaign of John F. Kennedy, whose eventual victory would make him the first Catholic president.

Back then, Kennedy was constantly fending off accusations from Protestant ecclesiastic types who were wary that his nomination meant the pontiff, John XXIII, was already packing his bags for a move into the White House.

Advertisement

President John F. Kennedy meets with Pope Paul VI at the Vatican in July 1963, one month after Paul succeeded John XXIII as pontiff.

(Bettmann Archive / Getty Images)

The issue was so pronounced that 150 clergymen and laypeople formed Citizens for Religious Freedom, which in a pamphlet warned, “It is inconceivable to us that a Roman Catholic President would not be under extreme pressure by the hierarchy of his church to accede to its policies and demands.”

One particularly loud voice among the ministers was the Rev. Norman Vincent Peale, a popular and influential pastor and author. Peale was especially disturbed by Kennedy’s prospects.

Advertisement

“Our American culture is at stake,” he said at a meeting of the ministers. “I don’t say it won’t survive, but it won’t be what it was.”

The group asked Kennedy to “drop by Houston” to make clear his views on faith and government. He agreed, making a televised speech at the Rice Hotel, where he famously spelled out his firm opinions on the separation of church and state.

“I am not the Catholic candidate for president,” Kennedy told the group. “I am the Democratic Party’s nominee for president who happens to be Catholic.”

Time magazine reflected on the address some years later, concluding that the speech had gone so well for Kennedy “that many felt the dramatic moment was an important part of his victory.”

Since then, modern presidents have occasionally found themselves at odds with the Vatican. Typically Republican presidents would hear from the pope about foreign wars, while Democratic presidents were derided over abortion policies.

Advertisement

But such disagreements tended to be handled with the decorous language of diplomacy.

A man in a dark suit presents a medal on a ribbon to a man in white skullcap and religious robes, seated in an armchair

President George W. Bush presents Pope John Paul II with the Presidential Medal of Freedom in Rome on June 4 , 2004. The pope reminded Bush of the Vatican’s opposition to the war in Iraq. Bush praised him as a “devoted servant of God.”

(Eric Vandeville/Gamma-Rapho via Getty Images)

Then came Trump, who is now being accused of openly mocking the Catholic faith and the 1st Amendment. He called Leo weak on crime and foreign policy, among other things. A self-described nondenominational Christian who says his favorite book is the Bible, Trump’s hasn’t shied from bashing the pontiff, nor has he hesitated to blur the line separating church and state.

Where Kennedy argued for an absolute separation, Trump has advanced a model of religious resurgence, promising “pews will be fuller, younger and more faithful than they have been in years.” Through initiatives including the “America Prays” program launched last year, the White House has sought to bring “bring back God” by inviting millions of Americans to prayer sessions. The webpage for the program focuses features only Christian Scripture.

Advertisement

“From the earliest days of the republic, faith in God has been the ultimate source of the nation’s strength,” Trump said at a National Prayer Breakfast in February.

A man in a dark suit, hands clasped on a desk, is surrounded by other people standing near windows with gold curtains

President Trump, then-Vice President Mike Pence and faith leaders say a prayer during the signing of a proclamation in the Oval Office on Sept. 1, 2017. .

(Alex Wong / Getty Images)

In the United States, the Catholic Church historically has “loved the 1st Amendment” and its guarantee of religious liberty and, as a result, largely kept some distance from government, according to Tom Reese, a Jesuit priest and religious commentator. After its failures attempting to influence monarchs and politicians in Europe, the Catholic Church “didn’t want the government interfering with them and knew that it wasn’t their right to interfere with the government,” Reese said.

Kennedy loved the 1st Amendment too. He put it above his own religious beliefs, and said as much on his way to the White House.

Advertisement

“I would not look with favor upon a president working to subvert the 1st Amendment’s guarantees of religious liberty,” he said. “Nor would our system of checks and balances permit him to do so.”

A man with glasses, in red vestments, holds out his hands in prayer in a room with ornate blue and yellow mosaic walls

Pope Leo XIV meets with members of the community in Algiers at the Basilica of Our Lady of Africa on April 13, 2026.

(Vatican Pool via Getty Images)

Advertisement
Continue Reading

Politics

Dem fundraising giant in the hot seat as GOP lawmakers demand answers over dodged subpoena

Published

on

Dem fundraising giant in the hot seat as GOP lawmakers demand answers over dodged subpoena

NEWYou can now listen to Fox News articles!

House Republicans are demanding ActBlue, a top Democratic campaign fundraising apparatus, turn over international communications, probing whether the organization knowingly misled lawmakers and dodged subpoenas to hide weaknesses in its screening process to weed out illegal, overseas donations.

House Administration Committee Chairman Bryan Steil, R-Wis., House Judiciary Committee Chairman Jim Jordan, R-Ohio, and House Oversight Committee Chairman James Comer, R-Ky., collectively laid out their demands in a letter published on Tuesday.

“For more than a year, the Committees have conducted oversight regarding ActBlue’s ‘fundamentally unserious approach to fraud prevention,’” the letter reads.

“Recent reporting … strongly suggests that ActBlue deliberately obstructed the Committees’ investigation, including through misleading statements and noncompliance with our subpoenas.”

Advertisement

BREAKING THE FOURTH WALL: LEFT-WING GROUPS DEFIANT AS GOP SHEDS LIGHT ON GROUPS TIED TO CHINA

Rep. Jim Jordan leaves a House Republican Conference meeting at the U.S. Capitol in Washington, D.C., on Dec. 10, 2024. (Tom Williams/CQ-Roll Call, Inc)

The letter is addressed to Regina Wallace-Jones, the CEO and president of ActBlue, and is the most recent entry in investigations that began in 2023 when Republicans originally raised concerns about foreign donations possibly influencing American elections.

It also follows New York Times reporting on a memo from Covington & Burling, a law firm, warning that gaps in its screening armor could present “a substantial risk for ActBlue.”

The memo, on its own, does not implicate wrongdoing or indicate that ActBlue accepted international donations. Even so, the reporting caught the eye of Republicans in Congress.

Advertisement

Steil, Jordan and Comer are collectively asking ActBlue to produce two internal documents to examine the internal understanding ActBlue may have had about its own weaknesses.

The first is a resignation letter from General Counsel Aaron Ting — a document Republicans contend centers on liabilities created by ActBlue’s donation security.

Republicans believe the second, a message from ActBlue’s former legal counsel Zain Ahmad, relates to an ignored whistleblower complaint about those practices.

HOUSE HEARING RAISES RED FLAGS OVER FORMER TECH MOGUL’S ‘CCP NETWORK’ ALLEGEDLY FUNDING OF FAR-LEFT GROUPS

House Oversight Committee Chairman Rep. James Comer (R-KY) speaks to the media on his Committee’s investigation into former President Joe Biden’s cognitive state, in the Rayburn House Office Building on July 24, 2025 in Washington, DC. (Kevin Dietsch/Getty Images)

Advertisement

Republicans have already requested those documents before, but haven’t received them.

“There is considerable reason to believe that ActBlue may have deliberately withheld this responsive material to impede our investigation,” the letter states.

For its own part, ActBlue has claimed it makes every effort to ensure its fundraising complies with legal requirements.

In ActBlue’s own letter published in Nov. 2023, Wallace-Jones, the CEO, affirmed that the organization maintained the highest standards for scrutiny of its fundraising.

“Our approach is multilayered, with checks and confirmations occurring throughout the donation process to verify donors and donor information,” Wallace-Jones wrote.

Advertisement

“These measures, which include compliance measures, technological tools, and manual reviews, help to ensure the identity of donors, root out potential foreign contributions, and protect donors from financial fraud.”

OVERSIGHT DEMANDS DOJ ANSWERS ON FOREIGN FUNDING OF AGITATOR GROUPS AS IRAN, ANTI-ICE PROTESTS CONTINUE

Regina Wallace-Jones of Palo Alto soaks up the first evening of the DNC Convention at the United Center in Chicago, IL on Monday, August 19, 2024. (Photo by Yalonda M. James/San Francisco Chronicle via Getty Images)

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Republican lawmakers have given ActBlue two weeks to produce the requested documentation, setting a deadline for April 28, 2026.

Advertisement

“Absent these steps, the Committees are prepared to use available mechanisms to enforce our subpoenas,” the letter reads.

Continue Reading

Politics

Swalwell scandal sparks fears of deeper rot on Capitol Hill

Published

on

Swalwell scandal sparks fears of deeper rot on Capitol Hill

Eric Swalwell’s downfall has raised the possibility of a broader reckoning on Capitol Hill as congressional staffers, reporters and opposition researchers race to verify long-standing rumors of a sordid underground culture among the city’s most powerful.

Former lawmakers across the political spectrum have warned for years of a hushed congressional bacchanal marked by inappropriate revelry and sexual misconduct. But a sense of growing momentum gripped Congress on Tuesday, as Democrats grappled with Swalwell’s resignation and Republicans called for other lawmakers to face scrutiny.

The 72-hour collapse of Swalwell’s political career has shifted attention not only to his closest associates in Congress, but also to a larger set of sitting lawmakers from both parties suspected of lurid sexual activity. Several members have claimed that Swalwell’s alleged behavior was an open secret amid a cacophony of rumors on social media of other potential offenders.

“I think that many people knew about this for a while,” Rep. Anna Paulina Luna, a Florida Republican, said in an interview with The Times.

Luna, who planned to lead the charge to expel Swalwell before he resigned, alleged that young staffers would talk among one another about Swalwell’s conduct. Lawmakers should have done more to approach him about the rumors, she said.

Advertisement

Multiple current and former female staffers who spoke with The Times described a broader culture of warning one another about lawmakers with reputations for inappropriate conduct.

But the warnings, passed privately among junior aides, have focused on “sleazy” activity and boundary-crossing behavior, said one former legislative aide, who asked to remain anonymous. Whispers about sleazy behavior generally do not meet the coverage threshold for traditional newsrooms, which are bound by strict ethical standards.

Another former aide said that quiet guidance shared among female staffers focused on behavior that is legal, but nevertheless viewed as unprofessional and unbecoming of members of Congress — a line that has prevented many from speaking out publicly.

Now, a race is on for leverage between two political parties facing comparable strategic risks — each with members facing growing questions over their alleged conduct — and for scoops among news outlets, seeking to break the story first.

The Monday resignations of Swalwell and Texas Republican Rep. Tony Gonzales, who faced his own sex scandal, was also forcing lawmakers to address the issue publicly. Sen. Ruben Gallego (D-Ariz.) — one of Swalwell’s closest friends in Congress — answered questions from reporters at length Tuesday, telling them he should have confronted Swalwell when he heard rumors about his behavior.

Advertisement

“You let your guard down. I let him into my circle. … I deeply regret it,” Gallego said.

He denied knowing about Swalwell’s alleged misconduct when asked about the behavior.

“Look, we socialized. We went out. But I never saw him engage in any of the predatory behavior, harassment, sexual assault,” Gallego said.

Notably quiet was President Trump, who has faced sexual assault accusations of his own and frequently parried with Swalwell throughout his presidency. Although Trump posted an article reporting Swalwell’s resignation on social media, he has not commented on the matter in his own words.

The unraveling scandal comes at a time when lawmakers have come together across party lines to push for transparency in the case of Jeffrey Epstein, the late sex offender and alleged sex trafficker whose network of powerful associates included Democrats and Republicans alike.

Advertisement

The White House did not immediately respond to a request for comment.

Meanwhile, details of the Swalwell scandal continued to unfold Tuesday, as a Beverly Hills woman accused him of drugging and raping her in 2018. The Times could not immediately reach his attorney; he previously denied allegations of rape and sexual misconduct made by multiple women in published accounts last week.

Sex scandals are not a new phenomenon on Capitol Hill, which has seen over a dozen members embroiled in controversy over the last decade, including Katie Hill of California, Cory Mills and Matt Gaetz of Florida, and Blake Farenthold of Texas, among others.

But several prominent former members — including former House Speaker Kevin McCarthy — have warned of a more widespread cultural problem.

“Every member in Congress knows not to let any young staffer get around Swalwell or Matt Gaetz. It’s not a secret there,” McCarthy said Sunday on ABC’s “This Week.”

Advertisement

Luna had pressed lawmakers to address alleged sexual misconduct on Capitol Hill. In February, she called on the “predatory freaks” in Congress to leave office as she complained about the process to get ethical complaints handled.

“It pisses me off because while some of us are actually working and busting our asses, these clowns are sexually harassing their own staff, doing illegal crap, insider trading etc,” Luna wrote at the time.

Luna said Monday that she was encouraged to see bipartisan support for expelling Swalwell and Gonzales.

A longtime staffer who spoke on condition of anonymity said Tuesday that allegations against Swalwell have sparked conversations about how to do more to help staffers report sexual misconduct, such as reforming procedural rules that would allow staffers to report any of their concerns directly to ethics panels, and about the need for ethics investigations to move more quickly.

“Congress has a short-term memory, that is the difficulty here,” the staffer said. “After these guys leave their seats, there needs to be a concerted and consistent effort for reforms to be established and be made permanent.”

Advertisement
Continue Reading

Trending