Showing posts with label walz. Show all posts
Showing posts with label walz. Show all posts

Tuesday, September 15, 2026

Government Tax Fraud and Corruption, Part 17 - Fraud In Brooklyn, Fraud In Minnesota, Fraud In Education Programs and A Glimmer of Hope In Preventing Future Fraud

 We are continuing our discussion time 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 today’s corruption  train in  Brooklyn:


  • A Brooklyn adult  daycare owner recently admitted she had defrauded the Medicaid program over a seven year period of $64 million.

  • Zakia  Khan was recently  sentenced to 76 months in prison and to pay back over $61 million.

  • The defrauding went on from 2017 to 2024 and no one in the government noticed.

  • She pleaded guilty to conspiracy to commit health care fraud and conspiracy to defraud the United States.

  • She submitted claims to Medicaid for services that were never done.


Think about it: $64 million in billing over seven  years comes out to over $176,000 a week on average being falsely billed. And for seven years nobody noticed this  ridiculous amount of billing for services that, it turns  out, were never provided. Government incompetence at its best.


2)A House of Representatives panel  has asked the Vice  President's anti-fraud task force  to investigate the fraud situation  that has flourished in  Minnesota:


  • Specifically, they want the  task force  to investigate whether whistleblowers  on the fraud were retaliated  against by the administration of Governor Tim Walz.

  • The  committee recently published a report, “The Cost Of Doing Nothing: How Tim Walz and  Keith Ellison Fueled Minnesota’s Fraud Explosion."

  • The report contained whistleblower testimony and  government documents showing that Minnesota government officials continued paying taxpayer dollars into fraud  schemes despite being told about the  fraud activities.

  • The report  also alleges  that Walz and Ellison knew  of the defrauding all  the way back in  2019 and did nothing  to stop it.

  • Nine  whistleblowers were interviewed for the House 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.”

  • Also, the report asserted that Walz and others "prioritized managing political and media  fallout  over addressing known fraud vulnerabilities.”

  • The report estimated Minnesota  fraudsters stole  $300 million in child nutrition funds and as much as $9 billion in Medicaid fraud schemes.

  • Also: “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 Elliosn testified that they somehow  knew nothing about the fraud that was  going on under their noses despite multiple whistleblowers telling them.

  • Instead,  the report claims that Walz and his cohorts retaliated against anyone who raised concerns about the massive fraud going on using  intimidation, diminishing job  duties. and threats of surveillance


Not sure what is  worse: regular criminals exploiting government incompetence or  government  officials that refuse to  stop the  fraud  and go after those that are properly and honestly reporting  it. Walz and Ellison should know better …. unless they were financially or  politically benefiting  from the fraud.


3)But as we have often said in this  series, Medicaid, Covid and Medicare are not the only government  programs losing taxpayer wealth via fraud:


  • A recent report from the  Inspector General of the Department of Education found  that in just the past five years there have been at least 130 fraud schemes that ripped off education funds intended to educate our kids.

  • Just these identified fraud cases stole almost $71 million of taxpayer dollars.

  • The investigations  resulted in 98 criminal and civil cases, 74 suspensions, and 13 "administrative actions.”

  • According  to the report: “Individuals who commit K–12 fraud frequently operate within the school system itself.  These perpetrators have included State Superintendents of Education, charter school leaders, district superintendents and other high-ranking school officials, and school employees at all levels, as well as school vendors.”

  • A lot of the stolen funds were supposed to  go to kids that needed the most  education  help: special education students, vocation students, and school districts  serving low  income families.

  • Some of the  fraud schemes included inflated student enrollment  numbers, ghost students, fake invoices, bribery and  kickback schemes on contracts, and criminal conflicts of interest.


Unbelievable that the people we trust to educate and care for our kids are some of the very people  ripping  off the educational  government  programs and related taxpayer wealth. Especially distressing, is a  lot of this fraud denied  financial resources to the kids that needed it the  most. Disgusting.


4)This is  our 17th post dedicated to the massive fraud occurring in government programs. The amount of stolen taxpayer wealth and  goodwill is mindboggling. But at least the Trump administration, especially Vice president  J.D. Vance's anti-fraud effort, is producing some good results:


  • Vance recently announced  that about 870,000 people have  been  identified as  potential fraudsters and  will be  forever  blocked from  getting any Federal government  program money in the  future.

  • Specifically: "We are going to suspend 870,000 people permanently. People who defrauded the government over the last couple of years, last couple of decades. We're going to make it impossible for them to get loans from the Federal government. If you screwed the American taxpayer, the federal government is now going to say you're cut off, no more. You shouldn't be applying anymore. And if you do apply, you're no longer able to get those benefits."

  • As an  example  of his  group’s effort,  the recent “Heartland Fraud Surge” that ran from June through September,  and targeted the Covid era  and program fraud,  resulted in  criminal charges  against 160 people..

  • These  alleged fraudsters have  now been identified and the U.S. Treasury has  been tasked  with  recovering upwards of $22 billion.

  • An  example  of the task force’s efforts resulted  in Jamie Gray in Missouri being  charged with  allegedly  money laundering  almost $56 million  of taxpayer money.


A good start, hopefully the momentum and focus on preventing and recovering taxpayer wealth  will continue unabated until the government  bureaucracy figures a way to safeguard taxpayer wealth in  the first place.


That will do it for today: Medicaid fraud in Brooklyn, all kinds of fraud in Minnesota, education fraud everywhere and finally some  serious attention  to cleaning  up the mess.


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



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Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:


Monday, March 16, 2026

Never Ending Government Corruption ... And More - Part 2

 For years we have written and  discussed the massive fraud and wasting of taxpayer wealth that the American political class has allowed to happen. From the halls of Washington DC to local  mayor offices, the fraud has probably cost the American taxpayer trillions of dollars over time. Most recently, due mostly to the great journalism of Nick Shirley, we have seen how massive that fraud has been in Minnesota and other states.


1)Let’s start today’s fraud discussion in New York City with reporting by Western Journalism:


  • The New York Post reported that a $400 million taxpayer funded effort to renovate city schools did not pan out as promised.

  • The Post called the buildings “ghost”  schools even though the official  “plan” was to  fix up 27 schools for  mostly younger students.

  • The plan was supposed to be  executed from 2020 though 2025.

  • Eventually, parents were  told by the former mayor’s staff, Eric Adams,  that there were no plans to reopen various schools that were funded for renovations.

  • When pressed for answers,  city administrators offer a variety of excuses why the schools had not been reopened or the  renovations on others had not been completed.


All of  which leads to the conclusion: $400 million disappeared without the  promised benefits, making it a good bet there was massive fraud involved.


2)Let’s go back to  Minnesota and the Somali fraud tradition for the latest disgusting bit of defrauding taxpayers:


  • Probably the  most disgusting form of government fraud is when money that was set aside for the neediest in our society are denied access to those funds and help because someone else stole the money.

  • A  Somali immigrant living in  Minnesota allegedly ran a fraud scheme that entourage Somali families to sign up their kids for autism services at an  organization called Star Autism even though most of them did  not suffer from autism.

  • He paid the parents a kickback if they enrolled their non-autism kids in his business.

  • The Somali coordinated the fraud with a local medical practitioner to provide fake autism diagnoses.

  • Obviously, autism treatment was minimal since most of the enrolled kids did not have the disease.

  • Fortunately, the Somali immigrant, Abdinajib Yussuf, was caught in the act and pleaded guilty to defrauding Medicaid of $6 million.

  • Oh, Yussuf was not an  older seasoned  criminal, he is a 22 year old immigrant that stole $6 million.

  • And fortunately the investigators got  lucky since while investigating this scam they discovered another scam, the Smart Therapy Center, that defrauded taxpayers of $14 million.

  • To add insult to  injury, Yussuf wired $200,000 of stolen taxpayer funds to Kenya.


Unbelievable the magnitude of fraud that happened in the state of Minnesota and its inept governor, Tim Walz either ignored it, had no clue what was going on or benefited from the fraud. In any case, he should be ashamed at a minimum or jailed at the most for  his incompetence.


3)Let’s take the fraud up a few notches, given what the State Financial  Officers Foundation recently announced in a letter to President Trump, when they said that fraud scandals across  the country have “resulted in tens of billions of dollars being stolen from American taxpayers,” and that such corruption “shreds the fabric of a nation.”


So financial experts in state governments across the country are saying that the millions stolen in  Minnesota are just a small  fraction of the billions that have been stolen across the country:


  • The financial officers’s analysis claims that fraud and waste totals $28 billion a year

  • For example, the Chief Financial  Officer in Florida, Blaise Ingoglia, has already tracked down almost $2 billion in excessive and  wasteful spending.

  • Auditor Allison Ball in Kentucky found that over $836 million was made in corrupt and  improper Medicaid payments.

  • North Carolina auditor, Dave Boliek, uncovered over $41 billion in lapsed salaries for government employees that had been vacant for years.

  • Utah auditor, Tina Cannon, found over a half a billion dollars in fraud and waste across various state government organizations.


Finally, some honest people in government are finally identifying and  hopefully shutting down the massive wasting of taxpayer wealth. Let’s  hope that those that stole that wealth  finally see the  inside of a prison cell.


4)Back to Minnesota:  Judicial Watch sued the state government of Minnesota to get records on how taxpayer funds were spent, wasted or stolen, on state government programs associated with the Minnesota department of Children, Youth,  and Families. Their lawsuit resulted in Judicial Watch receiving 458 pages of government records.


What they found was quite disturbing: inept, incompetent, and wasteful disrespect for taxpayer wealth. I  will  not go through the entire set of findings they uncovered, that material is available on their website, but highlights, or lowlights, of the disgusting disrespect of taxpayer dollars include the following random acts of abuse and incompetence:


  • The Minnesota Child Care Center was disqualified from taxpayer money in 2022 because the center “intentionally gave materially false information on billing forms and/or provided false attendance records.”

  • In August 2022, Nuna Child Care Center (which shared the same address as Minnesota Child Care Center) was  denied taxpayer funding from the Child Care Assistance Program after investigators found “materially false information on billing forms and/or provided false attendance records.”

  • In both cases, videos proved that no children were arriving at these locations even though the administrators of these locations said that kids had arrived at the time the video surveillance was taken.

  • These two centers are  just the tip  of the iceberg in  poorly run or criminally run care centers in the state.

  • These and the others were cited for hundreds of violations including: Failure to comply with background study requirements, failure to comply with requirements related to infant care including bottle labeling, items in a crib with an infant younger than one year of age, and crib safety inspections, failure to keep hazardous items away from children, failure to maintain adequate staff to child ratios, failure to comply with staff training requirements, including orientation, CPR, first aid, annual in-service, and child development and learning, failure to maintain children’s files, failure to maintain personnel records, and failure to comply with handwashing requirements for children.


Amazing that so  much  taxpayer wealth was spent on so badly managed  or criminally managed  enterprises in the state. Makes you wonder why so many  day care centers were allowed to operate at  all and for so long, given the failures mentioned above.


Keep in mind that the above fraud and incompetence was uncovered by Judicial Watch in a single Minnesota state government entity. How much  more fraud and wasting of taxpayer wealth existed/still exists in other Minnesota state government organizations?


That will  do it for now: criminal fraud and government  incompetence from  New York to Minnesota to Florida To North Carolina To Utah and beyond.  Disgusting and we are likely just seeing the tip of the iceberg.


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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


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



**********************


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at: