Minn. Fraud Comm. Chair to Newsmax: Luxury Buys Are Tied to Alleged Somali Fraud

State Rep. Kristin Robbins, R-Minn., chair of the Minnesota House Fraud Prevention and State Agency Oversight Policy Committee, told Newsmax on Friday that Minnesota is facing what she called an "unconscionable" wave of taxpayer-funded fraud.

She alleged that stolen public dollars have financed luxury goods and overseas real estate purchases, from a resort in Kenya to property in Turkey.

Robbins, who represents House District 37A, alleged on "Finnerty" that fraud tied to Medicaid and other programs has surged far beyond what state officials can police on their own.

"It's unconscionable," Robbins said. "The estimate now is that there's probably $9 billion in fraud related to Medicaid, and that doesn't include the childcare fraud that you were referencing.

"So we are still at the tip of the iceberg on this."

When asked about images featuring luxury vehicles and jewelry, Robbins said the alleged spending extended beyond high-end purchases.

"And not only is it luxury cars and homes and jewelry, but they bought a resort in Kenya, an apartment building in Nairobi. Land in Turkey. Like this is completely out of control," she said. "They are stealing taxpayer dollars and hurting our vulnerable citizens."

Federal court records in the separate Minneapolis Feeding Our Future child nutrition fraud case showed at least one defendant agreed to forfeit overseas assets, including "an apartment unit in Nairobi, Kenya, and the Karibu Palms Resort on the Indian Ocean in Kenya," according to a Justice Department release describing the guilty plea.

State Sen. Michael Holmstrom Jr., representing Minnesota Senate District 29, appeared with Robbins and accused state leaders of being responsible for the broader fraud picture.

"Tim Walz and Keith Ellison are absolutely liable for this fraud through at least maladministration and nonfeasance," Holmstrom said, referring to Minnesota's governor and attorney general.

"Absolutely. This is going to end in handcuffs."

In recent days, Treasury Secretary Scott Bessent has described heightened federal scrutiny and expanded reporting on certain overseas transfers from Minnesota.

Reuters reported that Financial Crimes Enforcement Network — a bureau within the Treasury — issued a geographic order increasing scrutiny in Hennepin and Ramsey counties that requires additional information on funds transferred outside the United States.

That included reporting on transactions above $3,000, and Bessent said legitimate remittances should not be chilled if people can prove the funds did not come from social service payments.

Robbins said informal transfer systems are a central investigative challenge.

"There was a network called the hawala network, which is an informal structure because they don't use banks," Robbins said, adding that once money left the country, "it was really difficult to track."

Robbins said she had attended a roundtable with Bessent and said Treasury was bringing "many new tools" to help trace foreign transactions and "quantify how much of it went to al-Shabaab or other groups like that."

"So we're very grateful for the federal help and for helping us get to the bottom of this, because as a legislature, we honestly don't have the tools to trace those foreign transactions."

GET TODAY NEWSMAX+:

NEWSMAX is the fastest-growing cable news channel in America with more than 30 million people watching!

Reuters Institute reports NEWSMAX is one of the top news brands in the U.S.

You need to watch NEWSMAX today.

Get it with great shows from Rob Schmitt, Greta Van Susteren, Greg Kelly, Carl Higbie, Rob Finnerty – and many more!

Find the NEWSMAX channel on your cable system – Go Here Now

BEST OFFER:

Sign up for NEWSMAX+ and get NEWSMAX, our streaming channel NEWSMAX2 and our military channel World at War.

Find hundreds of shows, movies and specials.

Even get Jon Voight’s special series and President Trump’s comedy programs and much more!

Watch NEWSMAX+ on your smartphone or home TV app.

Watch NEWSMAX anytime, anywhere!