Over the past two months, Minnesota’s widening fraud scandals have drawn national attention. Investigators and watchdogs have uncovered what appear to be major abuses of taxpayer dollars tied to fraudulent day care and health care operations, and Democrat officials who oversaw the programs look, at minimum, asleep at the switch.
Minnesota isn’t alone.
Arizona’s reputation rests on independence and straight dealing. Katie Hobbs and Kris Mayes have replaced that image with stonewalling, favoritism, and excuses.
In Arizona, Gov. Katie Hobbs (D) and Attorney General Kris Mayes (D) have spent the past three years building a record that looks less like competent governance and more like protection for a corrupt status quo. Again and again, their offices have resisted transparency, shielded allies, and resisted oversight — while Republicans in the legislature have tried to drag basic accountability back into view.
Whether in Minnesota, Arizona, or any other jurisdiction across the country, taxpayers deserve better than a government that treats disclosure as optional and oversight as an attack.
Arizona governors often raise private money to cover inaugural expenses and then transfer leftover funds to the state. Hobbs broke that norm. Her office resisted disclosing donor information and withheld more than $1 million that should have gone back to taxpayers, triggering a direct clash with the legislature.
Lawmakers responded by writing the old precedent into law: Future administrations must fully report inauguration fundraising and spending. The bill passed with overwhelming bipartisan support — proof that this wasn’t a partisan gripe. Even Democrats understood that Hobbs had created a mess for herself.
The most serious cloud over Hobbs’ administration is an alleged pay-to-play scandal involving the Department of Child Safety.
The Arizona Republic reported that Sunshine Residential Homes, a for-profit group home operator with state contracts, received a significant rate increase approved under Hobbs’ administration after donating to Hobbs’ inaugural fund. The same request had been denied under the outgoing Republican administration.
The reporting also noted that Hobbs’ DCS did not approve comparable increases for other group homes. At the same time, the DCS ended contracts with 16 group homes — making Sunshine’s preferred treatment look even more suspect.
Mayes announced an investigation, then tried to push Maricopa County Attorney Rachel Mitchell and the Arizona auditor general off the case — even though legislators had asked those offices to investigate. Arizona Treasurer Kimberly Yee publicly rejected Mayes’ attempt and urged the county and auditor investigations to continue.
Since then, Mayes’ office has offered little public clarity. Nearly two years without meaningful updates invites the obvious question: Was the “investigation” a press release designed to run out the clock?
Hobbs then vetoed a bill last session meant to close loopholes and prevent future executives from gaming the system.
The Supplemental Nutrition Assistance Program doles out nearly $100 billion a year. It also attracts fraud. The Government Accountability Office flagged $320 million in stolen benefits between October 2022 and December 2024. The U.S. Department of Agriculture in 2023 estimated that around 12% of SNAP benefits were fraudulent.
That should make anti-fraud measures easy to support.
Instead, Mayes sued the Trump administration over efforts to gather more information from states about SNAP beneficiaries. Hobbs refused to comply with data requests. Whatever one thinks about SNAP’s scope, no serious public servant should block reasonable efforts to root out fraud and protect taxpayers.
When elected officials fight transparency in a program that moves billions of dollars, they aren’t defending the vulnerable. They are protecting a system that invites abuse.
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Kris Mayes has other problems.
U.S. Rep. Abraham Hamadeh (R-Ariz.) has asked the Department of Justice to investigate allegations of a pay-to-play bribery scheme involving Mayes and outside political groups, claiming she traded official actions for political benefits.
And late last year, a top official in Mayes’ State Government Division was arrested on charges related to controlling and trafficking stolen property. The city of Peoria had reportedly warned Mayes’ office nearly two years earlier about serious allegations involving that official, yet she remained in a position of authority until her arrest.
Arizona’s reputation rests on independence and straight dealing. Hobbs and Mayes have replaced that image with stonewalling, favoritism, and excuses.
Voters should take note. If Arizonans want honest government, they will have to demand it — at the ballot box and through aggressive oversight — before the culture of corruption becomes permanent.
Somali pirates. Dead people “billing” taxpayers. Foreign terror networks thriving on Medicaid scams. Hackers stealing identities to collect benefits.
That lineup sounds like an over-the-top Hollywood heist movie. Americans now read versions of it on the front page.
Americans should treat this caper as a wake-up call. Elected leaders should treat it as an emergency.
Federal prosecutors charged 78 Somali immigrants with allegedly stealing more than $1 billion from taxpayers. National outlets noticed, including the see-no-immigrant-evil New York Times. Prosecutors also say suspected Medicaid fraud in Minnesota may top $9 billion, with new allegations and evidence surfacing by the day.
Hollywood can’t compete with numbers like that. In “Die Hard,” the crooks chased $640 million. Danny Ocean’s crew in “Ocean’s 11” made off with a mere $160 million. Minnesota’s real-life scammers allegedly went after far more, and they exploited programs meant to help the vulnerable.
Americans should treat this caper as a wake-up call. Elected leaders should treat it as an emergency: Prosecute the thieves, close the loopholes, and change the incentives that let fraudsters treat public benefits like an ATM.
For perspective, the fraud under investigation approaches the size of Somalia’s entire government budget and equals roughly 12% of Somalia’s economy, based on recent estimates. Minnesota’s Somali population equals about 0.5% of Somalia’s population and about 2.5% of the Twin Cities metro. Yet prosecutors say a small number of people allegedly moved sums that rival major industries back home.
Worse, investigators say some stolen money went overseas. In the Feeding Our Future case and related investigations, federal prosecutors have alleged that some proceeds flowed to al-Shabaab, a terrorist group the United States has targeted for years. If those allegations hold, taxpayers didn’t just fund fraud. They helped bankroll an enemy.
Minnesota’s scandal also exposes a national contradiction. Washington wages war abroad, welcomes refugees at home, and writes checks through the same federal programs that criminals can exploit — while the national debt nears $39 trillion.
Minnesota’s political class added its own layer of absurdity. Rep. Ilhan Omar (D) built a profitable career calling America racist. Minneapolis Mayor Jacob Frey (D) delivered his re-election victory speech in Somali just days before the scope of these cases made headlines. Symbolic gestures came easy. Basic oversight did not.
Gov. Tim Walz (D) still owes voters answers. Did incompetence drive this disaster, or did indifference do the work? Homeland Security Secretary Kristi Noem argues both played a role. Reports now suggest state employees blew the whistle years ago about lax controls and sloppy management. Voters heard little of it when elections still hung in the balance.
RELATED: Trump has the chance to end the welfare free-for-all Minnesota exposed
Walz reportedly knew about major fraud risks as early as 2020. His administration later resumed funding after recipients sued, accusing the state of racism. The Walz administration also handed an “outstanding refugee award” in 2021 to a woman now charged in connection with fraud — facts that undercut today’s alibis.
Federal investigators deserve credit. The Departments of Justice and Treasury have pursued these cases aggressively. House Oversight Chairman James Comer (R-Ky.) has opened another congressional probe. Prosecutions matter, but prevention matters more.
A new law President Trump signed this summer aims to make fraud more difficult to pull off. It requires states to recheck eligibility for able-bodied adults on Medicaid every six months instead of annually. For the first time, it also forces states to absorb more of the cost when they let fraud run rampant.
Those reforms should move quickly from paper to practice. States, red and blue, should implement them immediately. Fraudsters thrive on delay, confusion, and political excuses.
Taxpayer fraud deserves full prosecution. Political leaders who enable it deserve accountability too — whether they turned a blind eye, ignored whistleblowers, or refused to enforce the law. Every state in the Union should move now, or Minnesota’s scandal will spread.
The U.S. African Development Foundation, a foreign aid agency that poured millions of taxpayer dollars into African initiatives over the past four decades, desperately fought the Trump administration's efforts to dismantle the agency and audit its finances.
It's now painfully obvious why there was so much resistance to transparency at the U.S. Agency for International Development-adjacent outfit.
Months after government watchdog Judicial Watch sued the USADF for records regarding its expenditures and in the wake of allegations that agency officials were abusing their positions and misusing funds, the USADF's director of financial management, Mathieu Zahui, is now admitting wrongdoing.
'The USADF Director of Financial Management's fraudulent acts betrayed the trust of the American people.'
Zahui, an official who denied DOGE access to the agency's financial records last year, has agreed to plead guilty to taking secret payments and lying to federal law enforcement officers about those payments.
"Mathieu Zahui is charged with accepting payments from a government contractor and then abusing his position by directing USADF funds to that contractor for little-to-no work," Assistant Attorney General A. Tysen Duva of the Justice Department's Criminal Division said in a statement on Friday. "Corruption by senior officials representing the United States cheats American taxpayers and rigs the system against honest work."
RELATED: 'STOP THE SCAMS!' Trump announces new office in DOJ dedicated to investigating fraud
The Justice Department indicated in court documents obtained by Blaze News that Zahui, 59, arranged for the USADF to pay vendors and contractors through a Kenya-based company owned by a government contractor Zahui has known since 1999.
"Zahui arranged for ADF to pay certain vendors and contractors through Company-1 rather than pay them directly," the DOJ noted in the filing. "Zahui then approved invoices for Company-1 and CC-1 that included mark-ups ranging from 17% to 66% on these pass-through invoices, even when Company-1 did no work justifying the mark-up."
The company belonging to Zahui's associate submitted over 20 pass-through invoices for the African Development Foundation for which Zahui had USADF shell out at least $617,625.49. His associate's company allegedly kept $134,886.34 of that sum as a mark-up for "logistical support."
Between 2019 and 2022, Zahui personally and directly received $12,000 in cash payments, the DOJ alleged.
Zahui and his associate's company unsurprisingly failed to disclose the details of their little arrangement to the Bureau of the Fiscal Service, which oversaw and authorized USADF's payment to external parties.
Adding insult to injury, Zahui told federal agents when interviewed in 2024 that he had never received any kickback from his friend's company.
The USADF financial director has, however, since agreed to plead guilty to one count of accepting gratuities from his associate's company and one count of making a false statement to a federal law enforcement officer. He faces a maximum of two years in prison for the first charge and five years in prison for the second.
Peter Marocco, former director of the Office of Foreign Assistance and USAID deputy administrator, wrote in response to the agreement, "USADF is garbage. A culture of defiant fraud, waste and abuse that must come to an end. This is only scratching the surface. Abolish it!"
"The USADF Director of Financial Management's fraudulent acts betrayed the trust of the American people," said Sean Bottary, the acting assistant inspector general at the USAID's Office of Inspector General.
The USADF was one of the agencies President Donald Trump ordered the elimination of "to the maximum extent consistent with applicable law" in February 2025.
Blaze News has reached out to USADF for comment.
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The new documents show that Smith's efforts to acquire Patel's phone records during his time as a private citizen were far more extensive than previously reported.
A newly uncovered report suggests Clinesmith withheld exculpatory findings that undermined the legal basis for monitoring Trump adviser Walid Phares.
FBI Director Kash Patel claimed that Smith's collection of Wiles' phone records 'extended into [her] time as Trump’s co-campaign manager.'
Blue states, and blue cities, have gone floridly and relentlessly insane. There is no problem they can solve.
States are abusing intergovernmental transfers at patients’ and taxpayers’ expense.
The first rule of Democrat Club is that you aren't supposed to mention the fraud and the grift.
The real story is not the supposed scandal. It is the relentless recycling of the same hoax playbook and the media’s grotesque complicity.
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