Minneapolis, Minnesota — FBI Director Kash Patel said federal investigators have only begun to uncover the scale of alleged fraud tied to public assistance programs in Minnesota, calling recent prosecutions “just the tip of a very large iceberg.” His remarks come as scrutiny intensifies over schemes that prosecutors say siphoned hundreds of millions of dollars from programs intended to serve vulnerable populations.
In a statement posted Sunday, Patel said the FBI had already surged investigative resources into Minnesota before the issue gained traction on social media. The most prominent case involves the nonprofit Feeding Our Future, which federal prosecutors say exploited a COVID-era child nutrition program in a scheme worth roughly $250 million. Investigators allege sham vendors, shell companies, and money laundering operations were used to bill the government for services never provided. More than 90 people have been indicted across related cases, with charges including wire fraud, conspiracy, and bribery.
Assistant U.S. Attorney Joe Thompson has warned publicly that uncovered losses may ultimately reach into the billions, pointing to broader vulnerabilities across Medicaid, housing, and childcare assistance programs. Patel said some defendants are also being referred to immigration authorities for potential denaturalization or deportation proceedings.
The cases have sparked political fallout. President Donald Trump and other Republicans have tied the fraud to immigration policy, prompting criticism from Democrats who argue the rhetoric unfairly targets Minnesota’s Somali community. Gov. Tim Walz’s administration has responded by suspending licenses, creating a state integrity unit, and cooperating with federal investigations, while acknowledging earlier oversight gaps.
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