The Largest Funder of Al-Shabaab Is the Minnesota Taxpayer

Posted by Geoffrey Clarfield

Read all about how Minnesota Taxpayers support Al Shabaab terrorist group in Somalia.

This is Ryan Thorpe and Christopher F. Rufo in City Journal

Minnesota is drowning in fraud. Billions in taxpayer dollars have been stolen during the administration of Governor Tim Walz alone. Democratic state officials, overseeing one of the most generous welfare regimes in the country, are asleep at the switch. And the media, duty-bound by progressive pieties, refuse to connect the dots.

In many cases, the fraud has allegedly been perpetrated by members of Minnesota’s sizeable Somali community. Federal counterterrorism sources confirm that millions of dollars in stolen funds have been sent back to Somalia, where they ultimately landed in the hands of the terror group Al-Shabaab. As one confidential source put it: “The largest funder of Al-Shabaab is the Minnesota taxpayer.”

Our investigation shows what happens when a tribal mindset meets a bleeding-heart bureaucracy, when imported clan loyalties collide with a political class too timid to offend, and when accusations of racism are cynically deployed to shield criminal behavior. The predictable result is graft, with taxpayers left to foot the bill.

If you were to design a welfare program to facilitate fraud, it would probably look a lot like Minnesota’s Medicaid Housing Stabilization Services program. The HSS program, the first of its kind in the country, was launched with a noble goal: to help seniors, addicts, the disabled, and the mentally ill secure housing. It was designed with “low barriers to entry” and “minimal requirements for reimbursement.” Nonetheless, before the program went live in 2020, officials pegged its annual estimated price tag at $2.6 million.

Costs quickly spiraled out of control.

In 2019, Feeding Our Future received $3.4 million in federal funding disbursed by the state. In the months after the Covid-19 pandemic began, however, the nonprofit rapidly increased its number of sponsored sites. Using fake meal counts, doctored attendance records, and fabricated invoices, the perpetrators of the fraud ring claimed to be serving thousands of meals a day, seven days a week, to underprivileged children. In 2021, Feeding Our Future received nearly $200 million in funding.

In reality, the money was being used to fund lavish lifestyles, purchase luxury vehicles, and buy real estate in the United States, Turkey, and Kenya. In 2020, Minnesota officials raised concerns about the nonprofit’s rapid expansion. In response, the group filed a lawsuit alleging racial discrimination related to outstanding site applications, noting that Feeding Our Future “caters to . . . foreign nationals.”

“That’s the standard operating playbook for that cohort: when in doubt, claim racism, claim bias,” says David Gaither, a former Minnesota state senator and a nonprofit leader. “Even if the facts don’t point to that, it allows for many folks in the middle, or on the center-Left, to stay silent.”

Gaither believes the mainstream media, alongside Minnesota’s Democratic establishment, have long turned a blind eye to fraud within the Somali community. This, in turn, allowed the problem to metastasize.

The fraudsters have leveraged their growing political influence to cultivate close ties with Minnesota’s elected officials. Several individuals involved in the Feeding Our Future scheme donated to, or appeared publicly with, Ilhan Omar, the Somali-born congresswoman from Minneapolis. Omar’s deputy district director, Ali Isse, advocated on behalf of Feeding Our Future. Omar Fateh, a former state senator who recently ran for Minneapolis mayor, lobbied Governor Tim Walz in support of the program. And one of the accused, Abdi Nur Salah, served as a senior aide to Minneapolis mayor Jacob Frey.

Just days later, on September 24, U.S. Attorney Joseph Thompson announced his office’s first indictment in yet another fraud case. This time, the scheme involved federally funded autism services for children.

Kayesh Magan, a Somali-American who had worked as a fraud investigator at the Minnesota Attorney General’s Office and declined an interview request, identified the problem last year: “We must grapple with something that is uncomfortable and true: Nearly all of the defendants in the cases I’ve listed are from my community. The Somali community.”

Perhaps the most surprising aspect of the Somalia fraud story is the scale, with total costs running into the billions of taxpayer dollars. That raises the question: What happened to all that money?

The Somali fraud rings have sent huge sums in remittances, or money transfers, from Minnesota to Somalia. According to reports, an estimated 40 percent of households in Somalia get remittances from abroad. In 2023 alone, the Somali diaspora sent back $1.7 billion—more than the Somali government’s budget for that year.

Our investigation reveals, for the first time, that some of this money has been directed to an even more troubling destination: the al-Qaida-linked Islamic terror group Al-Shabaab. According to multiple law-enforcement sources, Minnesota’s Somali community has sent untold millions through a network of “hawalas,” informal clan-based money-traders, that have wound up in the coffers of Al-Shabaab.

According to Glenn Kerns, a retired Seattle Police Department detective who spent 14 years on a federal Joint Terrorism Task Force (JTTF), the Somalis ran a sophisticated money network, spanning from Seattle to Minneapolis, and were routing significant amounts of cash on commercial flights from the Seattle airport to the hawala networks in Somalia. One of these networks, Kerns discovered, sent $20 million abroad in a single year. “The amount of money was staggering,” Kerns said.

Kerns then investigated the hawalas in Somalia that were receiving the money transfers. He determined, primarily through human sources, that significant funds were being sent from America to Al-Shabaab networks in Somalia. Whether the money was intended for Al-Shabaab or not, Kerns said, they were taking a cut.

“Every scrap of economic activity, in the Twin Cities, in America, throughout Western Europe, anywhere Somalis are concentrated, every cent that is sent back to Somalia benefits Al-Shabaab in some way,” the former official said. “For every dollar that is transferred from the Twin Cities back to Somalia, Al-Shabaab is . . . taking a cut of it.”

A third source, who spoke on condition of anonymity, described the close links between the Somali-American community in Minnesota and Islamic terror groups abroad. Ten years ago, the source was recruited as an “independent contractor” for a three-letter agency investigation into the “Minnesota men” who had joined, or attempted to join, ISIS. That year, a Homeland Security task force report found that Minnesota led the nation in the number of Americans who had joined, or attempted to join, ISIS. Of the 58 Americans who had done so, nearly half came from Minnesota.

Scott Johnson, who has covered these and related stories for years, attended several of those men’s trials, reporting on them for City Journal. He noted that the Minnesota men “gave the outward appearance of American assimilation”—including being “sophisticated users of social-welfare benefits.”

The relationship is ongoing. “This is a third-rail conversation, but the largest funder of Al-Shabaab is the Minnesota taxpayer,” the third source said.

The first step to solving a problem is acknowledging it. By extension, that means recognizing the problem’s true source. So far, Minnesota’s governing class and its media establishment have failed to take that basic step. Minnesotans will have to confront the uncomfortable but unavoidable reality: members of the Somali community have played a central role in the massive fraud now engulfing the North Star State.

 

Read it all here