• FBI opened criminal investigation into Feeding Our Future during pandemic after suspicious reimbursement claims and whistleblower reports
• Director Kash Patel confirms 78 indictments and 57 convictions in food-aid fraud, with investigations ongoing
• Federal prosecutors describe Minnesota’s situation as industrial-scale fraud extending beyond food programs into housing, autism services and other Medicaid programs

MINNEAPOLIS, MN (TDR) — The FBI has been investigating large-scale fraud in Minnesota for several years, with FBI Director Kash Patel publicly confirming Sunday that what authorities have uncovered so far represents just “the tip of a very large iceberg.”

In a statement posted on X, Patel said the Bureau had already surged personnel and investigative resources to Minnesota before recent viral social media reports intensified public attention on the state’s fraud crisis.

The Feeding Our Future Investigation

The largest known case centers on Feeding Our Future, a Minnesota nonprofit that allegedly stole approximately $250 million from federal child nutrition programs during the COVID-19 pandemic. Federal prosecutors say the organization and dozens of affiliated vendors billed for millions of meals that were never served to needy children.

“The FBI dismantled a $250 million fraud scheme that stole federal food aid meant for vulnerable children during COVID. The investigation exposed sham vendors, shell companies, and large-scale money laundering tied to the Feeding Our Future network.”

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The case has resulted in 78 indictments and 57 convictions to date, according to Patel. Aimee Bock, the organization’s founder, was convicted in 2025 of wire fraud and several other charges. Most defendants in the scheme are of Somali descent, though Bock herself is White.

Federal authorities say Feeding Our Future recruited hundreds of local groups and businesses to run food distribution sites, then submitted reimbursement claims to the Minnesota Department of Education, which paid out claims using federal dollars. Many claims were falsified with phony invoices and attendance rosters filled with fake children’s names.

How the FBI Uncovered the Scheme

FBI officials say they opened a criminal investigation during the pandemic after suspicious reimbursement claims and whistleblower reports flagged irregularities in Minnesota’s use of federal nutrition funds. The investigation, conducted jointly with IRS Criminal Investigation and the U.S. Postal Inspection Service, uncovered extensive money laundering operations.

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At its peak, Feeding Our Future listed 299 meal sites that purported to have served 90 million meals in less than two years—more than 120,000 meals per day. However, FBI surveillance of one site claiming to serve 6,000 meals daily found it actually averaged around 40 visitors.

Minnesota state auditors later faulted the Minnesota Department of Education for missing warning signs and failing to address complaints, saying the agency “created opportunities for fraud.” The audit also noted that Feeding Our Future had accused the state of racial discrimination when officials began scrutinizing the group more closely, which had a chilling effect on oversight.

Beyond Food Aid: Industrial-Scale Medicaid Fraud

Federal authorities now describe Minnesota’s fraud problem as extending far beyond the Feeding Our Future case. First Assistant U.S. Attorney Joe Thompson said Thursday that 14 Medicaid programs identified as high-risk for fraud have cost the state $18 billion since 2018.

“The magnitude cannot be overstated. What we see in Minnesota is not a handful of bad actors committing crimes. It’s staggering, industrial-scale fraud.”

When asked how much of that $18 billion could be fraudulent, Thompson suggested half or more—potentially exceeding $9 billion. “When I say significant, I’m talking in the order of half or more. But we’ll see,” he told reporters.

Housing and Autism Program Fraud

Federal prosecutors unveiled new charges Thursday in fraud schemes targeting Minnesota’s Housing Stabilization Services program and autism therapy services. Five defendants were charged with pocketing $750,000 instead of helping Medicaid recipients find stable housing, with some using proceeds to travel to London, Istanbul and Dubai.

Two defendants from Philadelphia were accused of “fraud tourism”—traveling to Minnesota specifically because they heard the state’s programs presented “easy money,” Thompson said. “Minnesota has become a magnet for fraud, so much so that we have developed a fraud tourism industry—people coming to our state purely to exploit and defraud its programs.”

In the autism services fraud, prosecutors allege defendants submitted millions in fraudulent Medicaid reimbursement claims for services never provided. One defendant allegedly recruited parents within Minnesota’s Somali community to sign up for the program, helped get their children qualified for autism services, and in some cases paid kickbacks to parents.

The state’s Housing Stabilization Services program was shut down in October 2025 after officials found large-scale fraud. Thompson said some providers “simply obtained apartments or condos and then just put them in there and started billing,” sometimes hundreds of dollars per day, without actually providing services.

Juror Bribery and Subverting Justice

The fraud schemes extended into attempts to obstruct justice. Patel noted that defendants Abdimajid Mohamed Nur and others were charged with attempting to bribe a juror with $120,000 in cash during the Feeding Our Future trial.

“These criminals didn’t just engage in historic fraud, but tried to subvert justice as well,” Patel said. Those responsible pleaded guilty and were sentenced, including a 10-year prison term and nearly $48 million in restitution in related cases.

Whistleblower Allegations and Political Fallout

The fraud crisis has created significant political controversy for Minnesota Gov. Tim Walz, who served as the Democratic vice presidential nominee in 2024. House Oversight Committee Chairman James Comer launched an investigation into the fraud and allegations that Walz’s administration failed to act.

Nearly 480 Minnesota Department of Human Services employees posted on social media that Walz “systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports.” The employees claimed they warned leadership early about the fraud but were reassigned to different projects and “told to keep quiet.”

State Rep. Kristin Robbins said whistleblowers within the department are “terrified” and feel they’ve been retaliated against. “This fraud has been perpetuated on your watch, and the whistleblowers who reach out to us within the department are terrified,” Robbins told state officials.

Walz has defended his administration’s response, saying officials caught the Feeding Our Future scheme early but couldn’t take further action due to a judge’s order and an FBI request not to interfere with the federal investigation. The governor launched a fraud prevention program in December 2025 led by a former FBI agent.

However, Walz has disputed federal prosecutors’ $9 billion fraud estimate. “I haven’t seen any evidence or information to suggest there is $9 billion worth of Medicaid fraud that’s happened in the state of Minnesota,” said Rob Clark, Walz’s newly appointed program integrity director.

Immigration and Deportation Proceedings

Patel confirmed that “many are also being referred to immigration officials for possible further denaturalization and deportation proceedings where eligible.” President Donald Trump has repeatedly called Minnesota a “hub of fraudulent money laundering activity” and has targeted the state’s Somali community in his criticism.

The fraud cases have sparked debate within Minnesota’s Somali American community. A Somali American investigator suggested that accusations of racism made against state agencies led to hesitancy in taking action against Feeding Our Future, and that some fraudsters used such accusations to avoid accountability.

Recovery Efforts and Ongoing Investigations

Although more than $250 million is alleged to have been stolen in the Feeding Our Future case alone, only around $75 million had been recovered as of early 2025. Much of the money was spent on luxury meals, hotels, or transferred to overseas investments that the United States cannot seize.

Patel emphasized that the FBI’s investigation remains active and expansive. “The FBI believes this is just the tip of a very large iceberg. We will continue to follow the money and protect children, and this investigation very much remains ongoing.”

Thompson echoed that sentiment, telling reporters: “Every day, we look under a rock and find a new $50 million fraud scheme.”

The U.S. Attorney’s Office continues to file new charges as investigators uncover additional schemes. Federal officials say the scale of fraud in Minnesota outpaces that of other states and puts legitimate services at risk for people who genuinely need them.

Will Minnesota’s fraud crisis lead to systemic reforms in how states administer federal assistance programs, or will similar schemes emerge in other states?

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