Friday, June 12, 2026

Government Taxpayer Fraud and Corruption, Part 6: Obamacare Fraud, Seattle Gives Fraudsters Free Reign, and As Always, More Minnesota Fraud

 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)As always it seems,  a great of the  defrauding of the American  taxpayer via government programs  is  in  Minnesota, as  the latest fraud developments  come to light;


  • JD Vance has asked the Justice Department  to jump into the fraud investigations in Minnesota to see whether  top state officials and politicians  enabled,  ignored, suppressed, or were complicit in the  many frauds already uncovered in the state.

  • Of particular interest is  what were the dynamics, if any, between,  government  officials and the Minnesota  Somalia community, many of whose members are already in jail  or headed to jail for their participation in the Feeding Our Future scheme and other frauds.

  • Many, many whistle blowers have  come forward over the years in the state to accuse high  ranking government  figures of being ignorant of or ignoring the billions of  taxpayer dollars that were being  stolen  in state and Federal government  programs.

  • Vance has  raised the stakes in the  investigations with his referral to  the  Fraud division in  the Department  of Justice.

  • This request follows the  findings  of a 205 page House Oversight Committee investigation  that alleged that the state governor, Tim  Walz, and  his  cronies  retaliated against  whistle blowers  for  unmasking the massive  fraud in the state.

  • According  to Vance:  “I’ve referred these allegations to DOJ’s new Fraud Division for criminal investigation. Minnesota state officials are not above the law, and if they facilitated fraud, lied under oath about what they knew, or harassed and intimidated whistleblowers, they must face justice.” 

  • House Oversight Committee Chairman James Comer, added, “Minnesota Governor Tim Walz and Attorney General Keith Ellison are responsible for one of the most stunning oversight failures this Committee has ever examined.”

  • The  committee report  concluded, based on whistleblower and other  testimony, that Walz  and state attorney general,  Keith Ellison, were aware of the fraud accusations for years but “failed to use their authority to halt payments or remove questionable providers from government programs.” 


Even  if  Walz and  Ellison did not personally profit, either financially or politically, their  incompetence  is amazing,  given  the  years of warnings and the massive extent  of the fraud.  And blaming Trump for the situation is equally pathetic.


2)We have already extensively discussed the reality that Somali fraud gangs  allegedly have  been defrauding the taxpayer in multiple  states including Maine, Minnesota and Ohio. This does not mean  that all Somalis are fraudsters and criminals.  However, regardless  of  where someone comes from,  if there  is a valid  suspicion of fraud, it  should be investigated.


Unless  you are the  mayor of Seattle, a city that is  a prime  candidate in  our discussion of what city will go bankrupt first:


  • Katie  Wilson, the mayor, has  openly stated that she is refusing to  investigate alleged fraud in Seattle's Somalia operated daycare centers despite what Somali criminal gangs are doing  elsewhere.

  • According  to reporting by the Gateway Pundit: “Seattle socialist mayor will NOT investigate fraud at Somali-run daycare centers, calls it an attack on immigrants.” 

  • How can it be  an attack on immigrants if  they are stealing taxpayer money?

  • According to  Wilson: “This whole issue is not really about fraud.  It’s about dividing and conquering. It’s about making an immigrant community a target. There’s no reason to assume based on the identity of a daycare operator that their small business is doing anything wrong” and “it’s problematic to have random people showing up to daycares” and that “the fear in the Somali community is real” and “the fear in immigrant communities are real.”

She  is assuming  that there is no fraud without even considering the possibility that fraud exists, a major disservice to  city taxpayers. A major, major  function  of any government entity  and  the  people that operate  it  is  to protect the lives and property of the  people they serve. Assuming innocence of potential fraudsters is a major failure of  that government function.


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3)In our  recent and continuing series on  government fraud and  the  ripping off of taxpayer wealth, a lot of the discussion  has centered on Medicaid fraud, Covid fraud, day care fraud, and hospice fraud.  But that does not mean  that fraud is not going on in our favorite government failure, Obamacare:


  • A report and  analysis by the Paragon  Health  Institute, asserts that  about 6.2  million  Americans are fraudulently enrolled in Obamacare.

  • If true, then  these 6.2 million fraudsters are costing the American taxpayer about $25 billion a year.

  • Basically, the  report  says that these 6.2  million  people are not eligible under the law to receive  subsidized health  care because their income levels  are too  high.

  • Again, if true, then  one out of every four people getting  Obamacare financial subsidies should not be getting the  money.

  • Paragon  used Federal  government  enrollment and Census data to show that millions of  people are getting subsidies that exceed the income levels of the total population.

  • Specifically:  "Obamacare enrollment over the last few years has been inflated by improper and phantom enrollees, and those enrollees are expensive to the taxpayer. The problem is more severe in states that did not expand Medicaid, because in those states there's incentives to overestimate income and claim a subsidy."

  • But Paragon is not alone in pointing out the potential Obamacare fraud since in  2024, the Centers For Medicare and  Medicaid Services estimated that 4.4 Obamacare enrollments were bogus.

  • Last December, the Government Accountability office warned that  the Obamacare process had persistent risks,  specifically: "For example, we were able to get subsidized insurance for fake enrollees."


Another day, another  corrupted  government process  and program.  Long  time  Illinois Senator Everitt Dirksen once said, “A billion here, a billion there, and pretty soon you're talking real money.” Yes, real money,  real money that the American taxpayer trusted to  the Washington political class to  efficiently provide services  to  Americans. And that trust,  based  on the widespread fraud that is coming to light, has been severely violated.


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