The ‘largest fraud in US history’ is allegedly going unchecked under authorities’ noses

The FBI has stepped up a major probe into a fraud scheme thought to be worth hundreds of millions of dollars in Minnesota.

Independent journalist Nick Shirley had this week accused state authorities of allowing the “largest fraud in US history” to go unchecked in an extraordinary documentary on social media.

Mr Shirley had helped blow the lid on the scheme, which stole federal food aid meant for vulnerable children during the pandemic.

He visited sites like a learning centre which he accused of pocketing millions in taxpayer cash.

Bureau Director Kash Patel, in a lengthy statement on Sunday, said agents were helping to dismantle the multi-million-dollar con – with many of those already indicted for fraud being members of Minnesota’s sizeable Somali population.

He said the facts already out there were “just the tip of a very large iceberg” and threatened convicted Somali scammers with deportation.

“To date, the FBI dismantled a $250 million fraud scheme that stole federal food aid meant for vulnerable children during COVID,” Mr Patel wrote.

“The investigation exposed sham vendors, shell companies, and large-scale money laundering tied to the Feeding Our Future network,” he added.

FBI boss Kash Patel said his Bureau has stepped up a major probe into a fraud scheme

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The case resulted in 78 indictments and 57 convictions.

“Defendants included Abdiwahab Ahmed Mohamud, Ahmed Ali, Hussein Farah, Abdullahe Nur Jesow, Asha Farhan Hassan, Ousman Camara, and Abdirashid Bixi Dool, each charged for roles ranging from wire fraud to money laundering and conspiracy,” he said.

A separate bribery scandal emerged during the proceedings.

“Abdimajid Mohamed Nur and others were charged for attempting to bribe a juror with $120,000 in cash. Those responsible pleaded guilty and were sentenced, including a 10-year prison term and nearly $48 million in restitution in related cases,” Mr Patel said.

Independent journalist Nick Shirley had this week accused state authorities of allowing the ‘largest fraud in US history’ to go unchecked

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“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,” he added.

“Furthermore, many are also being referred to immigrations officials for possible further denaturalization and deportation proceedings where eligible.”

Minnesota’s Government was allegedly defrauded out of at least $1billion in public funds for programmes meant to feed children, help the homeless and provide autism therapy.

So-called providers allegedly handed authorities fake invoices for services which were never provided, federal prosecutors say.

Vice President JD Vance and world’s richest man Elon Musk have also voiced major concerns about the state.

“What’s happening in Minnesota is a microcosm of the immigration fraud in our system,” Mr Vance said.

“Politicians like it because they get power. Welfare cheats like it because they get rich. But it’s a zero sum game, and they’re stealing both money and political power from Minnesotans.”

Mr Musk added that once more Americans find out about the alleged fraud, they “will be horrified at what your tax money is doing”.