The Department of Homeland Security on Tuesday highlighted Day 2 of a "massive operation" in Minnesota, as federal agents intensified efforts to crack down on widespread Somali-initiated fraud targeting state and federal programs.
DHS posted video online showing agents conducting searches and enforcement actions aimed at individuals suspected of defrauding taxpayers.
The surge follows new allegations involving daycare centers in the Minneapolis area, many operated by Somali residents, that are accused of abusing public assistance programs.
"Our investigative agents are conducting a massive operation to identify, arrest, and remove criminals who are defrauding the American people," DHS said in a post on X. "We will root out this rampant fraud plaguing Minnesota."
The announcement comes amid heightened scrutiny of Minnesota, which has been under investigation for years over large-scale fraud involving Medicaid, pandemic relief funds, and child nutrition programs.
Homeland Security Secretary Kristi Noem confirmed Monday that Homeland Security Investigations agents are actively operating in Minneapolis.
"HSI @ICEGov are on the ground in Minneapolis right now conducting a massive investigation on childcare and other rampant fraud," Noem wrote on X.
FBI Director Kash Patel also announced increased operations, saying federal authorities are focused on "dismantling large-scale fraud schemes exploiting federal programs."
The latest push follows reporting by independent journalist Nick Shirley, who alleged that Somali day care centers in Minneapolis committed as much as $100 million in fraud.
Minnesota's most notorious fraud case remains the "Feeding Our Future" scandal, which prosecutors called the largest COVID-19-related fraud scheme in the country.
The case involved roughly $300 million in pandemic relief funds intended to provide food for children. Since 2022, 78 people have been charged, and 57 have been convicted or pleaded guilty.
Federal prosecutor Joe Thompson has estimated that total losses from fraud schemes in Minnesota could exceed $1 billion.
Earlier this month, a federal prosecutor alleged that half or more of the roughly $18 billion in federal funds sent to support 14 Minnesota programs since 2018 may have been misappropriated.
Minnesota Gov. Tim Walz, a Democrat and the 2024 vice presidential nominee, said fraud will not be tolerated and pledged cooperation with federal authorities. Walz is seeking a third term in 2026, and the issue is expected to play a major role in the race.
House Oversight Committee Chairman James Comer, R-Ky., said he plans to subpoena top Minnesota officials, including Walz, to testify under oath as Congress investigates how the fraud went undetected for years.
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