Monday, June 22, 2026

Government Fraud and Corruption, Part 10: Student Financial Aid Fraud In Minnesota, Rigged Contract Bidding Fraud in New York, and More

 We are going to  spend a lot of discussion time in the coming posts to review the massive amount of criminal fraud that has infected government programs for many, many years.  The outstanding investigations recently done,  and still being  done, by independent journalist,  Nick Shirley, has started a cascading identification of the numerous fraud instances at all  levels of government  across the country.

It is unbelievable how many billions of dollars have been wasted and are currently being wasted and siphoned off by all types of criminal activities. And while it is amazing how much taxpayer wealth has been wasted and lost, possibly even more amazing is the reality that through the decades the political class and the government entities they overlook were unable or unwilling to stop the fraud.

1)It seems there is no end to  the corruption and fraud of government programs in the state of Minnesota, much of it ignored and/or encouraged by the governor:


  • A House of Representatives committee has asked  the JD Vance anti-fraud effort to investigate the  accusations  that the Minnesota governor,  Tim Walz, allegedly retaliated against state government whistleblowers.

  • These whistleblowers were trying to tell those in charge of the  massive fraud in the state’s government programs.

  • The  committee  report  was  entitled:  “The Cost of Doing Nothing: How Tim Walz and Keith Ellison Fueled Minnesota’s Fraud Explosion.”

  • The report accused Walz and his  attorney general, Ketih Ellison, of having known  of the massive fraud  as early as 2019 but they did nothing to  stop the  ripping  off of taxpayer dollars.

  • According  to the report: Whistleblowers within DHS [state Department of Human Services] have alleged that Governor Walz not only knew about this fraud, but that he retaliated against whistleblowers, ‘spen[ding] millions on surveilling staff and hiring private investigator (sic) or law firms to silence staff,. Then Temporary [DHS] Commissioner Shireen Gandhi confirmed in her testimony that DHS used outside entities to investigate DHS staff.”

  • The report maintains that the refusal to investigate and address the fraud resulted in about $300 million being stolen out of a Federal child nutrition  program and  $9 billion in stolen  Medicaid funds.

  • At least 65 Minnesota folks have already been  convicted in the state’s fraud cases.

  • More from the report:  “The state’s consistent failure to act decisively in the face of known fraud allowed brazen criminal schemes to flourish and diverted resources away from the vulnerable populations these programs were intended to serve.” 

  • Walz and  Ellison  have denied knowing about any fraudulent activities despite the  many whistleblowers who have come  forward over the years.

  • And  some of the more  serious  accusations: “Instead of trying to stop widespread fraud, Governor Walz’s administration retaliated against employees who tried to raise concerns, going to great lengths to keep them quiet, including intimidation through regular check-ins with high-level agency officials, diminishing job duties, and threats of surveillance,” 


What a disgusting mess. People stealing taxpayer funds that were intended  to help Americans in need and those in  charge of the program at the  highest level of state government  in  Minnesota allowed it  to happen.  Billions of dollars lost, either because of complicity or incompetence.


2)Fraud is not only done at the street criminal  level, sometimes government officials get into  the fraud act also:


  • The  NewYork governor, Kathy Hochul,  has  allegedly been involved in a rigged government  bidding process.

  • The process was for a huge  Medicaid homecare program.

  • The allegation is that Hochul steered the contract for the program to a preferred  company.

  • The "preferred" company is supposedly Public Partnerships  LLC (PPL) which is a payroll service company.

  • They were hired by the state government of New York  to  manage payments to 250,000  home care  recipients under the Consumer Directed Personal Assistance Program.

  • This program pays out taxpayer dollars  to friends and family members  who are  supposedly taking care of  very ill  or  disabled friends and family members.

  • A Federal report  accuses two high ranking  members of Hochul’s administration of  serious misconduct in the contracting process.

  • The report also asserts that Hochul was “actively involved” in the awarding  of the contract and that  there was “pressure from the Governor’s Office” in the  awarding  process.

  • Once the contract was  given massive troubles started  with scheduling and quality.

  • According to the Justice Department: New York’s backroom deal with PPL has cost taxpayers millions of dollars and cast countless Medicaid patients to the curb.” 


Whether it  is in Minnesota or California and now New York, it seems that the abuse of the Medicaid  program is one  of  the great scandals  in the  history of the  country.


3)As always, we seem  to end up in Minnesota:


  • In a new twist to Minnesota fraud, accusations have come to light of corruption relative to colleges in the state.

  • It is possible that  7,700 “ghost” students received $12.5 million in financial  aid and then vanished with the money.

  • The scheme worked  as follows: criminals steal an identity, enroll in a community college, apply for Federal  government  student  financial aid, and then disappear and never  attend classes, “ghost” students..

  • In  one example, at a Minnesota college, a course was opened to  registration. 

  • Within  two minutes, all 50 seats in the course were  filled.

  • However, it turned out that 48 of those registering for the class were bogus,  using the registration to get money.

  • Across 33 Minnesota state colleges, investigators found more than 7,700  suspected ghost  students.

  • Not only did these  ghost students get free money,  by registering for classes they shut out legitimate students from  the courses they wanted.


Walz has to be the most out of touch with  reality politicians in  recent memory. Medicaid fraud, feeding kids program fraud, ghost student fraud, Covid fraud, the list keeps  getting  longer and longer. The  country really dodged a fraud and incompetence  bullet when Walz did not become Vice President. 


Enough for  today: a new type of fraud in Minnesota,  high level fraud in New York, and the House reports on  massive whistle blower suppression  in Minnesota.


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https://www.change.org/p/deseat-congress-reset-freedom



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