Thursday, May 28, 2026

Government Taxpayer Fraud and Corruption, Part 1: Minnesota Fraudster Gets 40 Years In Prison, Social Security Fraud, Student Loan Fraud 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)Let’s start where Nick Shirley’s  investigations of fraud first hit the fan, up in Minnesota:


  • Feeding  Our Future was a fraud infested  charity up in Minnesota that was supposed to feed kids during the covid pandemic.

  • The executive director of the  charity,  Aimee Bock, was recently sentenced to over 40 years in prison for overseeing the stealing of almost $250 million of government  money that was supposed  to feed kids.

  • The Department  of  Justice named Bock  as the  “mastermind” of the fraud operation after  she was convicted.

  • She allegedly was said to have  created dozens of fake  shell companies  to  enroll in her food program that were then  used to launder taxpayer money.

  • According to the U.S. Attorney Lisa D. Kirkpatrick: “The defendants falsely claimed to have served 91 million meals, for which they fraudulently received nearly $250 million in federal funds. That money did not go to feed kids. Instead, it was used to fund their lavish lifestyles. Today’s verdict sends a message to the community that fraud against the government will not be tolerated.”

  • In addition to the prison  sentence, Bock  was ordered  to pay back $243 million.

  • In  addition  to Bock, a whopping 60 people have already pleaded guilty or have been  convicted  for their parts  in the  fraud and 80 people have  already been charged in connection with the  criminal operation.


Horrible lack of humanity,  they were supposed to be  feeding kids and ended up stealing  almost a  quarter billion dollars. And this might just be the  beginning of   the fraud that might still be coming in Minnesota. The DOJ has recently announced that they have issued 15 new  indictments relative  to  a potential scam in Minnesota that may have stolen another $90 million via the Medicaid program.


$340 million in just two instances in one state. Unreal.


2)The Trump administration  via  the Department of Health and Human Services (HHS) plans  to launch an AI effort to review the annual audits of government program across  the country:


  • If problems are found  within the audits review then the Trump administration may withhold billions of dollars in  Federal government funding from any states that fail to stop  the corruption and theft.

  • The AI audits  will cover not only Federal government programs but also universities and  grant  recipients  that  get more than $1 million in Federal dollars.

  • Given  that HHS  pays out $2  TRILLION, the potential  for fraud is  sky high.

  • Gustav Chiarello  of the  HHS Department stated that there could be upwards of $100 billion to  $200 billion in wasteful or fraud spending every year.

  • Since there are 161 million  Federal income tax filers every year, if the fraud is $200 billion that comes  out to a cost  of over $1,200 a year per taxpayer,  $1,200 that could be spent for the  benefit  of their families and themselves, not  an  insignificant  amount.

  • This effort is  all legal since it is allowed under the 1984 Single Audit Act.

  • Chiarello pointed out that Minnesota failed the 2024 audit which found  that  Minnesota  authorities  failed  to meet Federal reporting requirements on where Federal money was being  spent which probably explains why the Feeding our Future and  who  knows what other fraud was going on unattended by government  oversight.


The good news is that the Federal government  is FINALLY getting its act together  to protect taxpayer wealth. The bad news is who knows how  many billions/trillions  of taxpayer dollars have been stolen over the years which numerous Presidential administrations did nothing to stop.


3)Vice President JD Vance was named by Trump as the overseer of the Federal government's attempt  to clean up fraud in government  programs. He recently  traveled to Maine  in support of  that assignment:


  • His quote at a rally supporting the cleaning  out of fraud and corruption:“But here’s the thing, my friends, because you all work hard, because you all pay your taxes, because you do things the right way, it is time to have leadership in Washington that treats you the right way and protects those hard earned tax dollars.” 

  • Keith Soncerling, the Acting Labor Secretary, was with Vance and had this  to  say: “Since the Task Force began, we’ve already uncovered widespread fraud and are aggressively preventing it from ever happening again. So here’s some examples. We found that nearly 29 billion went to the same social security numbers across multiple states.  Oh, hold on, I got better ones. 139 million got sent to dead people.” 

  • The Daily Caller  reported  that the  anti-fraud task force  has  identified  almost $6.3 billion in  government  contracts being sent to possibly sham companies.

  • Almost 400 letters  have ben  sent  to these possibly fraud companies  to investigate if they are legitimate receivers  of taxpayer  dollars.


4)But the Trump  administration  is  not  just going after Medicaid and  Medicare fraudsters:


  • The administration via the Department of Education has  blocked about $600 million  in corrupt  student loan applications  in the past month according to  Daily Caller reporting.

  • This blockage of fraud happened just since April  26th when the Department  of Education  launched a new risk assessment tool on April 26th.

  • The tool identified  300,000 fraudulent student loan  applications  worth about $60 million.

  • The Department  is also  demanding colleges  across the  country  also  screen applications for fraud.


It  appears  that fraud is everywhere. It is like going on an  easter egg hunt where the eggs are not hidden, they just lay about in plain sight.  And it is only now where those eggs  of fraud  are being  picked up, prosecuted, and  prevented.


Okay, our  first fraud discussion: A Federal government  taskforce under the Vice president is already making progress, the first in what is hopefully many  prosecutions of fraud  has  given one Minnesota fraudster  40 years in prison, and fraud is everywhere, from the Department of Education to the Social Security Administration To Medicaid and beyond.


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



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