Minnesota long took pride in its Scandinavian-style social safety net — high taxes, strong public programs, and a belief that no child or vulnerable family should go without support. But that reputation has been shaken after one of the largest fraud scandals in state history, involving more than a billion dollars meant for children’s meals, homelessness support, and autism therapy.
Federal prosecutors say that over the past five years, dozens of people — many within Minnesota’s Somali-American community, though most are U.S. citizens — created fake nonprofits and companies that claimed to provide social services. In reality, investigators say much of the work never happened. Instead, huge amounts of taxpayer money were spent on luxury cars, expensive jewelry, overseas real estate, and vacations in places like Dubai and the Maldives.
The scandal first surfaced in 2022 with a nonprofit called Feeding Our Future, which claimed it was feeding tens of thousands of children during the pandemic. The state reimbursed the organization based on invoices alone, and prosecutors say many of those meal counts and child lists were completely made up. That discovery opened the door to two other schemes: a housing-aid fraud and an autism-therapy fraud. In both cases, investigators say providers exaggerated or fabricated services and paid themselves with state funds.
So far, 59 people have been convicted, and more cases are expected. One of the main figures, Abdiaziz Shafii Farah, was sentenced to 28 years for helping steal $47 million. Another participant, Abdimajid Mohamed Nur, received a 10-year sentence. Aimee Bock, the leader of Feeding Our Future, has been convicted and awaits sentencing. Authorities say the stolen money was used to buy high-end vehicles like Porsches and G-Wagons, multi-million-dollar homes, and investment properties in Minnesota, Kenya, and Turkey.
The scandal has deeply angered Minnesotans, who believed their generous social programs were built on trust and fairness. Many are also worried about political and social fallout, especially since most defendants share Somali ancestry. Somali community leaders stress that the criminal cases involve a tiny minority, but say the headlines are creating stereotypes and overshadowing the contributions of the wider community.
The controversy has fueled political debate. Critics say state officials hesitated to question suspicious activity because they feared public accusations of racism. A nonpartisan audit later found that concerns about appearing discriminatory did influence decisions inside some agencies. In one instance, Feeding Our Future warned regulators that rejecting their applications could spark a “racism scandal,” leading the state to back off.
The fallout has spread far beyond the courtroom. Some Minnesotans are questioning whether the state’s high-trust welfare model can survive such exploitation. Others argue the pandemic overwhelmed agencies and made it easier for criminals to slip through. Somali Americans say they feel unfairly blamed and worry the scandal will damage the community’s progress for years.
Governor Tim Walz has acknowledged major failures in oversight. He has launched a fraud-detection task force, expanded information-sharing between agencies, and approved new tools to identify suspicious billing. But critics say the state acted too slowly and allowed criminals to take advantage of programs meant for hungry children, struggling families, and kids with disabilities.
Federal prosecutors have summed up the frustration many Minnesotans feel: the fraud wasn’t just about money — it directly harmed people who needed help. Every luxury purchase represents a service that a vulnerable child never received.
Minnesota now faces a difficult question: can a system built on trust survive when that trust is so deeply broken?
