Expert Identifies Critical Element Behind Major Minnesota Fraud Operation

Minnesota’s social services system is facing one of the largest fraud scandals in U.S. history, as federal prosecutors uncover what they describe as “schemes stacked upon schemes” by Somali-run non-profits that allegedly diverted hundreds of millions of taxpayer dollars from child-nutrition and Medicaid housing programs.

The sprawling investigation has led to charges against more than 70 defendants, with prosecutors securing dozens of convictions as new waves of indictments continue. The majority of those charged are members of Minnesota’s Somali community, which numbers around 80,000 people.

According to Simon Hankinson, a senior research fellow at the Heritage Foundation’s Border Security and Immigration Center, the scandal stems from a complex interplay of declining immigrant assimilation and fear of being perceived as racist.

“Assimilation is a two-sided coin,” Hankinson explained in an interview with Fox News Digital. “The pressure comes from inside, from you wanting to assimilate so you can make it in the new society, but it also comes from outside, where the society says, ‘Hey, we expect you to do this.'”

He noted that America’s expectations for immigrant integration have diminished. “We don’t really expect anything of our immigrants,” Hankinson said, adding that many American-born citizens “really don’t like this country and what it stands for” and therefore don’t encourage others to adapt to it either.

The fraud schemes were particularly egregious in Minnesota’s Medicaid autism program, where companies allegedly recruited families, secured fraudulent diagnoses, and billed for therapy services that never occurred. This systematic exploitation drained millions from state programs designed to help vulnerable populations.

Hankinson emphasized that the fraud cannot be blamed on the entire Somali community, stressing that those involved represent a minority. However, he suggested that cultural differences played a role in the community’s vulnerability to such schemes.

“When you come from a culture that provides you with nothing from the center, everything is family, everything is clan, everything is local, then it’s almost impossible for you to understand how a federal system would work,” he explained. This cultural dynamic, combined with strong loyalty to family and clan members, made it less likely for community members to report suspicious activities.

Minnesota’s generous welfare programs and what Hankinson described as a “high trust state” environment created perfect conditions for fraud to flourish. “In Minnesota, these programs were low-hanging fruit. They were so easy to fleece, it’s almost farcical,” he said. “So, the carrot is there to commit fraud, and there’s no stick.”

The scandal has triggered state and federal investigations, congressional scrutiny, and calls for accountability. Questions remain about why warning signs were missed and how the fraud was allowed to reach such a massive scale.

Hankinson suggested that fear of being accused of racial bias may have contributed to oversight failures. “Nobody likes to be called a racist. It’s about one of the worst things you could be called,” he noted. “But I do think liberal Americans, in particular white liberal Americans, are more afraid of that label than anything else.”

This dynamic has complicated the response on both state and national levels. Following the Trump administration’s announcement of a crackdown on illegal immigrant Somalis in Minnesota, Democratic Governor Tim Walz accused it of “demonizing an entire group of people just by their race and their ethnicity.”

Hankinson criticized Walz’s response, saying, “I can’t take Tim Walz seriously, honestly, because he was the governor who was in charge while all this was happening. Where was he? He was asleep at the switch.”

The fraud scandal has placed Minnesota’s Somali community under intense scrutiny as investigations continue. Hankinson expressed hope that many Somalis would join efforts to address the fraud issues, helping to “give their community the reputation that it deserves.”

The case highlights broader challenges in America’s social services system, including inadequate oversight mechanisms, cultural integration issues, and the complex dynamics surrounding immigration, community, and public resources.