{"id":2516825,"date":"2025-12-03T05:47:01","date_gmt":"2025-12-03T10:47:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/walz-appointees-failed-to-stop-rampant-minnesota-fraud\/"},"modified":"2025-12-03T05:49:01","modified_gmt":"2025-12-03T10:49:01","slug":"walz-appointees-failed-to-stop-rampant-minnesota-fraud","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/walz-appointees-failed-to-stop-rampant-minnesota-fraud\/","title":{"rendered":"Walz appointees failed to stop rampant Minnesota fraud"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwalz-appointees-failed-to-stop-rampant-minnesota-fraud%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2516825&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article reports on widespread fraud within Minnesota&#8217;s social services programs under Governor Tim Walz&#8217;s administration. Federal prosecutors have charged dozens, mainly from the Somali community, with stealing hundreds of millions of dollars by exploiting state and federal assistance programs, particularly those for autistic children and housing aid. The Minnesota Department of Human Services (DHS), led by appointees of Governor Walz, faced criticism for failing to stop this abuse despite internal warnings. Former DHS Commissioner Jodi harpstead, previously head of Lutheran Social Service of minnesota, resigned amid the scandal. Her successor, Shireen Gandhi, acknowledged challenges in detecting fraud, although records suggest DHS ignored credible fraud reports. A social media account claiming to represent DHS employees alleges leadership ignored fraud to avoid harming the state&#8217;s image and retaliated against whistleblowers. The DHS denies retaliation claims and emphasizes ongoing efforts to combat fraud. The controversy highlights significant oversight failures and raises questions about accountability within Walz&#8217;s administration.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">These are the Walz appointees who failed to stop rampant Minnesota fraud<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2044778\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>As controversy mounts regarding fraud within Minnesota&rsquo;s social services, individuals elevated to leadership positions under Gov. Tim Walz (D) are <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dr-fauci-faces-renewed-criticism-over-past-remarks-about-new-york-serving-as-a-model-for-fighting-pandemic\/\" title=\"Dr. Fauci faces renewed criticism over past remarks about New York serving as a model for fighting pandemic\">facing renewed scrutiny<\/a>.<\/p>\n<p>Federal prosecutors have <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.nytimes.com\/2025\/11\/29\/us\/fraud-minnesota-somali.html\">charged <\/a>dozens of individuals, primarily from Minnesota&rsquo;s Somali community, with <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/3903431\/bessent-treasury-investigation-minnesota-fraud\/\">stealing hundreds of millions of dollars<\/a> from state and federal taxpayers by abusing a host of government assistance programs. Programs administered by the state&rsquo;s Department of Human Services &mdash; specifically those intended to help people caring for autistic children or facing housing insecurity &mdash; were among the most abused.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/investigations\/3903642\/aspca-sends-scraps-shelters-despite-millions-collected-consumer-watchdog\/\">ASPCA sends scraps to local shelters despite millions collected in donations, says consumer watchdog<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/investigations\/3901608\/chicago-teachers-union-funneled-millions-to-liberals\/\">Chicago teachers union funneled millions to liberals while keeping members in the dark about finances<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/immigration\/3903122\/suspected-national-guard-shooter-reveal-deeper-problems-asylum-seeker-vetting\/\">Suspected&nbsp;National Guard shooter&nbsp;reveals deeper problems with asylum seeker vetting<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>Housing assistance fraud was so rampant that the Walz administration has begun shuttering the program associated with it in recent months. On the autism front, prosecutors say that members of the state&rsquo;s Somali community ran clinics that recruited children, falsely categorized them as autistic so they could reap state assistance funding, then paid kick-backs to parents.<\/p>\n<p>&ldquo;As staff, we firsthand witnessed and observed fraud happening, yet we were shut down, reassigned, and told to keep quiet,&rdquo; a <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/x.com\/Minnesota_DHS\/status\/1994993895428461006\">social media account<\/a> claiming to represent Minnesota state employees concerned with fraud wrote on November 29. &ldquo;Leadership did not want to appear to discriminate against certain communities and [was] unwilling to take action, such as stopping fraud, that would have an adverse impact on their image. To date, no single agency leader has been held responsible for their role in fraud, whether it&rsquo;s Shireen Gandhi, Jess Geil, Jodi Harpstead, Natasha Merz, Eric Grumdahl, or others.&rdquo;<\/p>\n<p>Walz <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.twincities.com\/2019\/08\/12\/mn-walz-appoints-dhs-commissioner-harpstead-lutheran-social-service\/\">appointed <\/a>Harpstead to head the Minnesota DHS in 2019. Prior to the appointment,&nbsp;Harpstead led Lutheran Social Service of Minnesota, an organization that receives public funding to <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/bridging.org\/blog\/lutheran-social-service-of-minnesota-refugee-services-offers-welcoming-presence-and-vital-resettlement-resources-to-new-minnesotans\/\">resettle Somalians<\/a> in the state. Using her organization&rsquo;s nine-figure annual budget and thousands of staff, Harpstead <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.sctimes.com\/story\/news\/local\/immigration\/2016\/01\/05\/lss-minnesota-ceo-refugee-resettlement-not-new\/78315780\/\">deposited <\/a>Somalians in both large cities and smaller towns, helped them get jobs, and assisted them in acquiring housing.<\/p>\n<p>In addition to its resettlement work, Lutheran Social Service of Minnesota under Harpstead also <a href=\"https:\/\/amzn.to\/3YuVZYV\" >provided community education resources intended<\/a> to make Minnesotans more welcoming of Somalis. This included distributing a pamphlet titled &ldquo;My Neighbor is a Muslim&rdquo; to Lutheran churches across the state, encouraging native Minnesotans to attend Ramadan meals, and pushing community members to volunteer to assist Somalians.<\/p>\n<p>&ldquo;Listen, read, think, discuss &mdash; and don&rsquo;t leap to fear and hatred,&rdquo; she said. &ldquo;There&rsquo;s so much information on social media and so many opinions, that for all of us to really think and read and learn and discuss is going to be important.&rdquo;<\/p>\n<p>Harpstead <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/minnesotareformer.com\/briefs\/minnesotas-department-of-human-services-commissioner-resigns\/\">resigned <\/a>in January amid scrutiny for failing to address fraud within her agency&rsquo;s programs. In addition to problems with autism and housing assistance, Harpstead&rsquo;s tenure saw the agency fall victim to fraudulent Medicaid, addiction, and transportation <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.mnsenaterepublicans.com\/gruenhagen-dhs-commissioner-resigns-amid-fraud-scandals\/\">schemes<\/a>.<\/p>\n<figure class=\"wp-block-image size-large\"><figcaption class=\"wp-element-caption\">Gov. Tim Walz (D-MN) waits for a press conference to start outside Annunciation Church after a shooting in Minneapolis on Wednesday, Aug. 27, 2025. (Alex Kormann\/Star Tribune via AP)<\/figcaption><\/figure>\n<p>Walz <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/mn.gov\/governor\/newsroom\/press-releases\/?id=1055-667752\">selected <\/a>Gandhi, who was previously the Minnesota DHS&rsquo;s deputy commissioner overseeing budgeting and financial operations, to replace Harpstead.<\/p>\n<p>Gandhi, in a September interview, claimed that her team did not understand the complexity of the fraud being carried out in her agency&rsquo;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/illinois-city-approves-first-government-reparations-program-in-us\/\" title=\"Illinois City Approves First Government Reparations ... In US\">housing assistance program<\/a>.<\/p>\n<p>&ldquo;The claims coming into us looked legitimate on the face,&rdquo; she said, &ldquo;and you need to use data in new ways to uncover what may be fraudulent and then investigate that.&rdquo;&nbsp;<\/p>\n<p>Records obtained by KARE 11, a local media outlet, however, show that the agency actively <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.kare11.com\/article\/news\/investigations\/kare-11-investigates-flying-blind-state-agency-missed-or-ignored-repeated-housing-fraud-warnings\/89-795f7dc0-8848-4560-aefa-e91d8f8c033d\">ignored reports of fraud<\/a> from concerned citizens. In one case, Minnesota DHS authorities received a tip that a business collecting housing assistance funding from the state was going around offering cash to homeless people, allegedly so that it could falsely claim them as clients in order to receive more state funding. No action was taken to address this report.<\/p>\n<p>&ldquo;They had credible allegations of fraud and bribery,&rdquo; Republican State Rep. Kristin Robbins said. &ldquo;It&rsquo;s a complete dereliction of duty.&rdquo;<\/p>\n<p>Minnesota Staff Fraud Reporting Commentary, the social media account claiming to represent hundreds of state employees, has <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/x.com\/Minnesota_DHS\/status\/1990655186017165358?s=20\">argued<\/a> that Gandhi is not fit to head the Minnesota DHS, alleging that she has created an environment of &ldquo;distrust and demoralization.&rdquo; The account further alleges that Gandhi was responsible for oversight during much of the time when fraud was occurring in the DHS&rsquo;s programs.<\/p>\n<p>&ldquo;We cannot confirm whether the account on X (formerly Twitter) that you reference is run by any Minnesota Department of Human Services employees,&rdquo; the Minnesota DHS told the <em>Washington Examiner<\/em>. &ldquo;Individuals may choose to share their personal opinions through social media or other platforms. Any perception that employees are being discouraged from raising issues, or that efforts are being made to identify those who speak up, is false and runs counter to our values and expectations. The Minnesota Department of Human Services has strong policies and procedures in place to protect employees who report concerns or potential misconduct, consistent with state and federal whistleblower protections. Retaliation of any kind is strictly prohibited.&rdquo;<\/p>\n<p>Some employees have <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.fox9.com\/news\/minnesota-dhs-whistleblower-i-got-threatening-warning-about-speaking-up\">claimed <\/a>to the press that they have faced internal pressure when attempting to raise concerns about fraud.<\/p>\n<p>A spokesperson for the agency followed up by citing its prepayment reviews, clearing of inactive providers, investigations, and cooperation with law enforcement as evidence of its commitment to fighting fraud.<\/p>\n<p>The <em>Washington Examiner <\/em>reached out to the individual running the account purporting to represent Minnesota state employees in an attempt to confirm its legitimacy.<\/p>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/3351774\/politically-connected-somali-nonprofit-taxpayer-dollars-mishandling-millions\/\"><strong>POLITICALLY CONNECTED SOMALI NONPROFIT GROUP PULLED IN TAXPAYER DOLLARS AFTER MISHANDLING MILLIONS<\/strong><\/a><\/p>\n<p>Geil, one of the individuals singled out by the social media account, is in charge of ensuring compliance within the agency. Merz and Grumdahl, meanwhile, have since left the agency and were responsible for heading disability and behavioral health services, respectively. Both were promoted during Walz&rsquo;s time in office.<\/p>\n<p>&ldquo;We let Tim Walz know of fraud early on, hoping for a partnership in stopping fraud, but no, we got the opposite response,&rdquo; the account alleged in a November 29 post. &ldquo;Tim Walz systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports. Instead of partnership, we got the full weight of retaliation by Tim Walz, certain DFL members, and an indifferent mainstream media.&rdquo;<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Walz appointees failed to stop widespread Minnesota fraud<\/p>\n","protected":false},"author":894,"featured_media":2516826,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/10\/Tim-Walz-3.webp?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[14476,6909,5698,4633,27318],"class_list":["post-2516825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-appointees","tag-fraud","tag-minnesota","tag-scandal","tag-walz"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/10\/Tim-Walz-3.webp?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2516825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/894"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2516825"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2516825\/revisions"}],"predecessor-version":[{"id":2516829,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2516825\/revisions\/2516829"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2516826"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2516825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2516825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2516825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}