• Former Justice Department special counsel testified about Trump DOJ dismantling fraud prosecution infrastructure
• Ballou detailed pay-to-play cases where inaugural donations led to dropped charges
• Hearing intended to spotlight Minnesota Somali fraud became platform for corruption allegations

WASHINGTON, D.C. (TDR) — Former Justice Department special counsel Brendan Ballou turned a Republican-led hearing Wednesday into an indictment of Trump administration corruption, arguing the government is systematically dismantling its ability to prosecute white-collar crime while enabling fraud by wealthy donors.

Testifying before the House Oversight Committee as Democrats’ sole witness, Ballou acknowledged serious fraud in Minnesota social services programs but pivoted to accuse the Trump administration of engaging in equally massive government grift that dwarfs the Minnesota cases.

Acknowledges Minnesota Crisis

Ballou, a native Minnesotan and former federal prosecutor, began by expressing distress over Minnesota fraud schemes that have resulted in dozens of convictions and hundreds of millions in stolen taxpayer funds.

“Like all Minnesotans, like all Americans who have heard this story, I am deeply distressed by the fraud on the state’s social service programs. Most notably, in 2022, the Department of Justice indicted 47 people for stealing an estimated $246 million in funds meant to feed children during the COVID-19 pandemic.”

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Federal prosecutors have described the Minnesota schemes as the largest pandemic fraud in the United States. As of 2025, 78 people have been indicted in connection with the child nutrition program scheme, with 56 pleading guilty. Some 92 people have faced federal charges total, with 62 convicted across various programs.

“More recently, the department has charged over a dozen people for stealing $14 million from a program meant for children with autism and millions more from a program meant to help disabled Minnesotans maintain stable housing.”

Ballou called the thefts heartbreaking because money intended for the neediest Americans—the hungry, disabled and destitute—was stolen. He expressed concern the crimes would fuel skepticism of Minnesota’s social safety net and provide ammunition to demonize Somali and East African Minnesotans who overwhelmingly make the state more vibrant and prosperous.

Systematic Dismantling of Fraud Prosecution

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The former prosecutor then pivoted sharply, arguing the Trump administration is deliberately destroying the government’s capacity to investigate and prosecute fraud while the Minnesota cases receive intense scrutiny.

“I also fear the selective interest in fraud in America, because at the same time that these crimes are rightly being investigated by state and federal authorities, the larger infrastructure for prosecuting fraud and white-collar crime is being dismantled.”

Ballou detailed a series of actions by the Trump Justice Department that he characterized as crippling anti-corruption enforcement:

In February 2025, DOJ paused enforcement of the Foreign Corrupt Practices Act, which prohibits foreign bribery, and criminal violations of the Foreign Agents Registration Act, which bars acting as a secret agent for foreign powers.

Between February and April 2025, the department disbanded its Kleptocapture Task Force, which enforced sanctions against Russian oligarchs, and the National Cryptocurrency Enforcement Team.

“Last year the department forced out most of the lawyers of the Public Integrity Section, which prosecutes crimes by government officials, announced plans to dismantle the Tax Division, which prosecutes tax evasion, and shuttered the FBI task force that investigated congressional misconduct.”

Pay-to-Play Allegations

Ballou then detailed specific cases he characterized as pay-to-play schemes where Trump inaugural donations appeared to result in favorable treatment from the Justice Department.

The former prosecutor cited the case of Andrew Wiederhorn, CEO of restaurant chain Fat Brands, who was indicted in 2024 for allegedly stealing $47 million from his own company.

“In 2024, the Justice Department indicted Andrew Wiederhorn, CEO of a casual fast-food chain, for allegedly stealing $47 million from his own company. After his business donated $100,000 to the Trump inaugural committee, his case was dropped, and the line-level prosecutor on his case was fired.”

According to news reports, Assistant U.S. Attorney Adam Schleifer was fired in March 2025 by the White House after right-wing influencer Laura Loomer attacked him on social media. The case was dropped in July 2025.

Ballou also highlighted the Boeing case, where the aerospace giant faced prosecution for deceiving the government about software that caused two plane crashes killing 346 people.

“In 2021, the department sued Boeing for deceiving the government about the software that caused two plane crashes, killing 346 people. After donating $1 million to the inaugural committee, Boeing negotiated a favorable deferred prosecution agreement that the judge overseeing the case said, quote, ‘fails to secure the necessary accountability to ensure the safety of the flying public.’ But he felt compelled by precedent to accept it nevertheless.”

Trump’s Justice Department allowed Boeing to escape a guilty plea agreement in May 2025, despite victims’ families objecting to the lenient treatment.

Pattern Across Industries

Ballou extended his allegations beyond individual cases, claiming a systematic pattern of favorable treatment for Trump inaugural donors.

“Banks that contributed to the inaugural committee had litigations against them for violating consumer financial protection laws dropped, and so too did cryptocurrency companies that were investigated and sued by the Securities and Exchange Commission and who contributed to the inaugural committee.”

The former prosecutor emphasized that cryptocurrency companies which did not donate to the committee or affiliated entities remain defendants, suggesting donations determine prosecution decisions.

“Crucially, those crypto companies that did not donate to the committee or other affiliated entities remain defendants of the government.”

Scale and Selective Enforcement

Ballou argued the scale of frauds involving inaugural donors far exceeds the Minnesota cases receiving congressional scrutiny.

“The scale of these frauds involves millions stolen and hundreds killed, and yet they have received a fraction of the attention of the fraud that happened in Minnesota.”

The former special counsel warned the Trump administration is creating a roadmap for how wealthy fraudsters can buy their way out of justice through campaign and inaugural donations.

“This concerns me because we are both dismantling our infrastructure for fighting fraud and providing a roadmap for how those fraudsters who are prosecuted can buy their way out of justice.”

Defending Somali Community

Ballou also pushed back on characterizations of the Somali community during an exchange with Rep. Brandon Gill (R-TX), who questioned whether large-scale Somali immigration makes Minnesota stronger or weaker.

The former prosecutor noted that 82 Somali Minnesotans have been indicted for fraud out of a population of approximately 108,000, representing a 0.07% rate. He compared this to one-third of all Americans having a criminal record, arguing the statistics don’t support broad generalizations.

Warning About Two-Tier Justice

Ballou concluded his testimony with a stark warning about creating a two-tier justice system where the powerful operate above the law.

“While we need to pursue the fraud we’re seeing in Minnesota’s social safety programs for all the reasons I said—because it is the weakest among us who are being harmed—we cannot selectively show an interest in fraud. If we do, we put some people, the very powerful and the very rich, beyond the reach of the law.”

Chairman James Comer (R-KY) had opened the hearing declaring that Minnesota social services “are being ripped off” and calling the breadth of fraud “breathtaking.” Three Republican Minnesota state representatives—Kristin Robbins, Walter Hudson and Marion Rarick—testified alongside Ballou.

Republicans have used the Minnesota fraud scandal to pressure Gov. Tim Walz, who announced this week he would end his bid for a third term. Comer has invited Walz and Minnesota Attorney General Keith Ellison to testify before the committee next month.

Will Ballou’s testimony redirect congressional attention toward Trump administration corruption, or will Republicans maintain focus on Minnesota fraud as a political weapon against Democrats?

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