Politics
Inside Minnesota’s $1B fraud: fake offices, phony firms and a scandal hiding in plain sight
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MINNEAPOLIS, MN – 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.
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)
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.
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.
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.
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.
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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.
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.
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“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.
“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
Elections officials urge early mail-in voting, warn about ‘misinformation’
SACRAMENTO — State elections officials warned voters Tuesday to send their mail-in ballots in early after changes at the U.S. Postal Service that have led to slower mail service throughout California.
Atty. Gen. Rob Bonta and Secretary of State Shirley Weber said vote-by-mail ballots should be put in the mail at least a week before the June 2 election.
The officials also cast skepticism about social media posts that urge Democrats to vote “late” and to rally around one candidate in order to ensure a Republican doesn’t win. The posts are similar in wording and have spread on Facebook in the last week.
Bonta said the posts, which were brought up by The Times at a news conference in Sacramento, could be “misinformation” or “disinformation” and “potentially unlawful.”
“Get your ballot in the mail at least a week early,” he said. “You want to make sure your vote is counted. And the misinformation that you’re referencing is the misinformation we’re trying to combat.”
Voters using the postal service to mail their ballot within a week of the election should go inside the post office and ask that their ballot be postmarked, or can drop off their ballot at a secure voter box, officials said.
The new guidance comes after sweeping changes made by the Postal Service last year that has reduced the number of trips to pick up mail at post offices in mostly rural areas in the country, including California.
A Times analysis of last year’s November special election found that there was a significantly higher number of mail-in ballots that arrived too late to be counted compared with the 2024 election.
Rural counties saw some of the biggest increase in rejected ballots because they came in too late, The Times found.
The changes to the Postal Service are nationwide, but are particularly relevant in California because the vast majority of people vote in the state using mail-in ballots.
Voters who mail a ballot on election day, or even two days before, may not see their vote counted because it will arrive too late, Bonta told reporters.
“You want your vote to be counted, I want your vote to be counted,” Bonta said. “If you vote earlier, you maximize that possibility that it will.”
Vote-by-mail ballots are considered late if they are not postmarked on or ahead of election day or if the postmarked ballots do not arrive within seven days of the election.
Weber’s office also said it would look into a recent trend of social posts that urge California Democrats to “vote late” in the June 2 election.
The posts, which have appeared on Facebook and Instagram, are similar in wording, and tell Democrats to hold off from voting early to ensure that two Republican don’t make the two top spots, and to rally around one Democrat.
California’s primary election system allows the two candidates who received the most votes to advance to the November election, regardless of party.
With many Democrats crowding the ballot this year, some Democratic leaders have expressed concern fear that two Republicans — businessman Steve Hilton and Riverside County Sheriff Chad Bianco — will take the top two spots because Democratic voters will be splintered among the party’s top seven candidates.
The validity of the social media posts are under scrutiny.
One post on Facebook last week, for instance, purports to be written by historian Heather Cox Richardson. The post warned voters not to vote until after all the debates in California have concluded and the front-runner is clear.
Richardson told The Times that she’s not connected to the post. “I didn’t write it and we can’t figure out who did,” she said in an email. “I haven’t — and won’t — take any position in a primary.”
The last statewide election in California was closely watched after the U.S. Department of Justice said would monitor polling sites in some California counties after a request by California Republican Party officials.
However, the election proceeded without any incident.
Gov. Gavin Newsom on Monday sent a letter to elections officials in the state’s 58 counties that highlighted recent legislation mandating that California ballots be counted within 13 days, instead of 30 days. Newsom thanked the elections staff for their work and urged a speedy vote count.
“We must acknowledge that the longer the voting count takes,” Newsom wrote, “the more mis- and disinformation spreads.”
Politics
Trump Administration Investigating Smith College Over Transgender Admissions
The Education Department has opened a civil rights investigation into whether Smith College, the women’s school in Northampton, Mass., violated anti-discrimination laws by allowing transgender students to enroll.
The inquiry broadens the Trump administration’s bid to limit rights for the nation’s transgender students by targeting school admissions for the first time. Until now, the administration had mostly targeted policies that allowed for transgender women to participate in women’s sports and use women’s bathrooms.
By investigating Smith, the administration is raising the question of whether allowing transgender women to enroll at a women’s college — and providing access to “women-only” spaces such as bathrooms, dormitories and locker rooms — violates civil rights protections for women.
Kimberly Richey, the assistant secretary for civil rights at the Education Department, said in a statement that “an all-women’s college loses all meaning if it is admitting biological males.”
“Allowing biological males into spaces designed for women raises serious concerns about privacy, fairness and compliance under federal law,” Ms. Richey said. “The Trump administration will continue to uphold the law and fight to restore common sense.”
The college issued a statement acknowledging the investigation and stating that it remained “fully committed to its institutional values, including compliance with civil rights laws.”
About 4.7 percent of college students identify as transgender, according to the Society for Evidence-Based Gender Medicine, a group of doctors and scientists that has called for more government regulation of pediatric gender medicine.
The federal investigation was in response to a civil-rights complaint filed by Defending Education, a nonprofit group founded in 2021 that has become one of the leading voices in the growing parents’ rights movement. Several of the group’s complaints have sparked federal civil rights investigations during the past year, and its research is often cited during congressional hearings by conservative lawmakers.
Formerly known as Parents Defending Education, the Arlington, Va.-based group posted on its website a letter from the Education Department’s Office for Civil Rights on Monday announcing the investigation into Smith.
Smith, one of the nation’s largest women’s schools with about 2,500 students, has been admitting transgender students since 2015, along with several other top women’s colleges. The issue became a lightning rod at women’s colleges after a transgender applicant was denied acceptance to Smith in 2013 because her gender identity did not match her financial aid forms.
Since then, most women’s colleges updated their admissions policies to welcome transgender applicants. One notable exception has been Sweet Briar College in central Virginia, which does not admit transgender students and helps students in transition transfer to another college.
The Trump administration resolved 30 percent fewer civil rights complaints in the nation’s schools in 2025 compared with the Biden administration in 2024, the sharpest year-over-year decline in at least three decades. But the new administration has opened more than 40 civil rights investigations into schools and other educational institutions that provide protections for transgender students.
The Education Department has taken the unusual step of backing out of civil rights agreements that previous administrations negotiated to protect transgender students. The government has also sued state education departments and high school athletic associations in California and Minnesota over policies that permit transgender athletes to participate in school sports.
Politics
Elizabeth Warren’s Bezos Met Gala jab backfires as critics mercilessly drag ‘un-American’ lawmaker
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Sen. Elizabeth Warren, D-Mass., drew intense criticism on Monday after she claimed on X that Amazon founder Jeff Bezos should pay more in taxes in response to him sponsoring the Met Gala, with conservatives questioning the senator’s record and accusing her of misrepresenting facts.
“The answer to everything, up to and apparently including bankrupting an airline at the cost of something like 15,000 jobs and the entire concept of budget airfare, is ‘Jeff Bezos has a lot of money though,’” venture capitalist and media founder Mike Solana wrote in response to Warren’s post.
Solana was referring to the recent demise of Spirit Airlines. Conservative commentators claim Spirit could have been saved if Warren hadn’t pushed to block JetBlue’s acquisition of the budget carrier on anti-trust grounds in 2024.
“If Jeff Bezos can drop $10 million to sponsor the Met Gala, he can afford to pay his fair share in taxes,” Warren said on Monday, sparking the glut of pushback from social media users.
WASHINGTON POST ARGUES THERE’S ‘LITTLE TO GAIN BY RAISING TAXES ON THE RICH,’ RATES ALREADY HIGH ENOUGH
Sen. Elizabeth Warren, D-Mass., questions Treasury Secretary Janet Yellen during a Senate Finance Committee hearing on Capitol Hill in Washington on March 16, 2023. (Jacquelyn Martin/AP)
Following news that Bezos had cut an eight-figure check to fund the Met Gala, liberals in the entertainment industry such as Mark Ruffalo and Taraji P. Henson joined Warren in criticizing Amazon and Bezos for their allegedly unethical business practices. Protesters appeared outside the gala on Monday holding signs criticizing Bezos. One demonstrator was detained for trying to break into the event.
Warren’s message backfired online, as commenters pointed to the demise of Spirit Airlines and took issue with her tax policies across the years.
“Jeff Bezos employs over 1.5 million people at Amazon,” X user Gina Milan wrote. “You’re responsible for 17,000 workers losing their jobs and for blocking the merger that ultimately killed Spirit Airlines.”
Spirit put downward pressure on prices at other airlines and its folding could lead to an increase in overall travel prices, industry analysts told USA Today. Estimated job losses stemming from Spirit’s shuttering include approximately 15,000 direct employees and an additional 2,000 indirect employees.
“This myth just won’t die,” Reason Magazine reporter Billy Binion posted, responding to Warren’s assertion that Bezos isn’t paying enough in taxes. “In 2024 alone, it’s estimated Jeff Bezos paid almost $3 billion in taxes. Painting rich people as tax avoiders plays great on social media, but it’s not reality. The U.S. has the most progressive tax system in the developed world.”
Forbes estimates that Bezos paid $2.7 billion in taxes in 2024 after he sold $13.6 billion worth of Amazon stock. He reduced his tax burden that year by donating $2.5 billion in Amazon shares to charity over the three prior years. Bezos paid nearly $1 billion in taxes between 2014 and 2018, according to a ProPublica analysis of tax documents.
To minimize tax burdens, billionaires like Bezos often take out loans secured against their massive stock holdings to acquire spending money, according to securities filings reviewed by ProPublica. Since the IRS doesn’t consider loans income, this setup gives the wealthy access to cash without having to pay income taxes.
FROM ‘JUMP ON A BUS’ TO TAX CRACKDOWNS: BLUE STATES CHASE WEALTHY RESIDENTS FLEEING TO RED HAVENS
Billionaire Jeff Bezos attends the DealBook Summit. Critics on social media have accused Bezos of allowing the Washington Post to suffer amid hundreds of staff layoffs. (Eugene Gologursky/Getty Images for The New York Times)
Some on social media pushed Warren for specifics on how she plans to make Bezos pay his “fair share.”
“What’s his fair share?” Sen. Mike Lee, R-Utah, asked Warren. “What tax rate?”
Warren has proposed a wealth tax, charging households with net worths above $1 billion an annual tax worth 6% of their total wealth. Under Warren’s proposal, households with net worths between $50 million and $1 billion would be subject to a similar 2% tax.
Sen. Elizabeth Warren speaks to a staff member before the Senate Banking Committee hearing on oversight of credit reporting agencies on Capitol Hill in Washington, D.C., on April 27, 2023. (Drew Angerer/Getty Images)
CALIFORNIA’S HATRED FOR CAPITALISM IS KILLING THE GOOSE THAT LAID ITS GOLDEN EGG
Much of the growth in wealth experienced by Bezos and other billionaires comes through the unrealized gains of their assets, which Warren’s tax would target.
Writer Mike Coté pointed out that Bezos is “so rich that he can simply leave the jurisdiction or get citizenship elsewhere” if Warren’s tax plans were signed into law.
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“Liz Warren does not want progressive taxation,” he continued. “She wants confiscatory taxation. It’s fundamentally un-American. And it doesn’t work.”
Warren’s office did not respond to a request for comment sent by Fox News Digital Tuesday morning.
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