A massive fraud scandal has erupted in Minnesota, where up to $9 billion in taxpayer dollars intended for vulnerable residents has vanished into a web of deceit under the watch of Governor Tim Walz’s administration. Out-of-state opportunists, dubbed “fraud tourists,” have flocked to the state to exploit lax oversight in programs like Housing Stabilization Services (HSS), designed to aid the disabled, seniors, and those battling addiction. This industrial-scale theft not only robs hardworking Americans but also exposes the dangerous vulnerabilities in welfare systems that Democrats have refused to secure, allowing criminals to treat Minnesota like an easy mark.
Two Philadelphia men, Anthony Waddell Jefferson and Lester Brown, recently pleaded guilty to wire fraud after jetting to Minneapolis to siphon off $3.5 million from the HSS program. Posing as “The Housing Guys,” they recruited Medicaid beneficiaries from homeless shelters and Section 8 housing, fabricated businesses, invented employees, and even enlisted ChatGPT to generate phony documents when insurers grew suspicious. This marks Minnesota’s first known use of AI in healthcare fraud, a tech-savvy twist that underscores how modern crooks are outpacing outdated government safeguards, all while Walz’s team looked the other way.
Attorney General Pam Bondi has rightly condemned this outrage, declaring that such schemes shatter public trust and vowing relentless prosecutions under President Trump’s leadership. Federal agencies, including the FBI, IRS, and DOJ, are now surging resources into Minnesota, with FBI Director Kash Patel emphasizing zero tolerance for predators targeting the vulnerable. Bondi’s actions signal a welcome shift from the Biden-era leniency that let fraud fester, proving that strong conservative stewardship at the top is finally holding thieves accountable nationwide.
Senator Josh Hawley grilled Minnesota officials in explosive Senate hearings, spotlighting whistleblower reports of $100 million in cash stuffed into suitcases and flown out of Minneapolis-St. Paul Airport amid the scandal. This isn’t isolated; the SBA just froze over 111,000 California borrowers tied to $9 billion in pandemic loan fraud, revealing a pattern of blue-state mismanagement. Hawley’s fiery demand for justice—”you ought to be in jail”—captures the fury of taxpayers fed up with elites protecting their own while billions bleed away.
Congressman Riley Moore warnsthat this Minnesota mess is merely the tip, with suspicions that stolen funds have flowed overseas via hawala networks, potentially fueling terrorism and crime syndicates. Prior probes hinted at links to groups like al-Shabaab, demanding urgent federal scrutiny to claw back every dime and deport fraudsters where warranted. President Trump’s administration must lead the charge to dismantle these networks, restoring integrity to aid programs and ensuring American taxpayers’ money stays in America for Americans who truly need it.

