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fraud
Minnesota AG Ellison: Vance Referred Him, Walz to DOJ Over Fraud Cases as 'Political Stunt'
"It is deeply troubling to see official powers and public resources diverted away from serving the people and instead aimed at pursuing political adversaries," said Keith Ellison.
Jun 09, 2026
Minnesota Attorney General Keith Ellison forcefully pushed back against Vice President JD Vance's Monday night announcement on Fox News and social media that he had referred the state AG and Democratic Gov. Tim Walz to the US Department of Justice following allegations in a GOP congressional report that the pair was aware of fraud involving federal funds and failed to stop it.
"The allegations in the House Republican report are unfounded, and Vice President Vance's referral is a political stunt from an administration that uses the machinery of government to target its perceived opponents while extending leniency to those aligned with its interests," Ellison told CNN, highlighting how his office has investigated and prosecuted allegations of fraud involving public programs.
"It is deeply troubling to see official powers and public resources diverted away from serving the people and instead aimed at pursuing political adversaries," added Ellison, who is seeking another term in November. "That is not what government is for, and it diminishes public trust in our institutions."
Dozens of people were charged in Minnesota as a result of a federal probe into abuse of taxpayer funds during the Covid-19 pandemic that began under former President Joe Biden and related investigations that have continued since President Donald Trump returned to office last year. Trump has repeatedly used the cases to attack Somali Americans with racist rants, as well as to target Democratic politicians.
The new referral is not the first time the Trump administration has targeted Ellison and Walz, the 2024 Democratic vice presidential candidate who dropped his bid for another term as governor early this year. The DOJ subpoenaed the pair and other top Minnesota officials in January as part of its investigation into an alleged conspiracy to impede Immigration and Customs Enforcement (ICE) officers sent to the Twin Cities by the president—a probe the governor denounced as part of a broader trend of the administration "weaponizing the justice system."
As the White House faced intense national backlash for the deadly operation in Minnesota, Trump appointed Vance as "fraud czar" in February, and the vice president swiftly announced that the administration would pause some Medicaid funding for the state over fraud concerns. Walz said at the time that "this has nothing to do with fraud" and "is a campaign of retribution. Trump is weaponizing the entirety of the federal government to punish blue states like Minnesota."
In March, Walz and Ellison testified before the Republican-led House Committee on Oversight and Government Reform about the fraud cases, clashing with GOP lawmakers. At the time, the panel released an interim version of the report that was published on Monday. The Minnesota Star Tribune noted that the March edition "prompted House Democrats on the Oversight Committee to publish a competing report accusing Republicans of singling out Minnesota for political purposes."
Even before Vance's referral, spokespeople for Walz and Ellison were deeply critical of the final report, which claims that they "were aware of widespread fraud in federally funded social services programs for years, possessed the legal and procedural authority to stop payments and ban fraudulent providers from participating in these programs, but repeatedly failed to act."
As MPR News reported:
"This committee has proven time and time again to be nothing more than a joke. They continue to rehash Covid-era fraud to distract from endless wars, gas prices, ICE, and the president’s insider trading," [said] Teddy Tschann, a spokesperson for Walz. "Gov. Walz is glad to see fraudsters are going to prison. If the committee is concerned about corruption, they should investigate why President Trump continues to let fraudsters out of prison."
Walz’s office noted that several changes have been made over the last few years to address fraud, including new legislation creating an Office of the Inspector General, which will have independent power to investigate fraud.
Brian Evans, a spokesperson for Attorney General Keith Ellison, said, "Republicans in Congress issued a report riddled with inaccuracies and misrepresentations in an effort to politicize the issue of fraud, instead of actually helping Minnesota protect tax dollars and go after fraudsters."
In addition to releasing the updated report, the Oversight Committee's chair, Rep. James Comer (R-Ky.) sent a letter to Vance about it. The vice president then announced his referral on Jesse Watters' show, and posted his letter to the DOJ on social media.
While Oversight Committee Republicans celebrated Vance's post on social media, journalist Marcy Wheeler responded, "This fraud effort has ALWAYS been an attempt to distract from far bigger right-wing crimes, especially by Trump."
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No President 'More Brazenly Corrupt' Than Trump, Says Ilhan Omar
Responding to Trump's slur that Somali Americans are "all crooks," Omar said the president "uses fraud as a political cudgel while protecting his donor base and enriching himself."
Jun 02, 2026
US Rep. Ilhan Omar issued a blistering response to President Donald Trump's attacks on Minnesota and its Somali community on Tuesday with a Guardian opinion piece arguing that "there has never been a more brazenly corrupt president."
The Democratic Minneapolis congresswoman has weathered ceaseless personal insults from the president since first ascending to office in 2019 that have grown increasingly racist in his second term—threatening to strip her of her US citizenship and "throw her the hell out" of the country and referring to Somalis collectively as "garbage"and "very low-IQ people," who should all be deported despite mostly being legal US citizens.
"Any keen observer will recognize the pattern of inciting hostility against me and the Somali community whenever his own failures and corruption catches up to him," Omar said. "He routinely reaches for the same tired playbook of lies, racism, and deflection."
Trump called me “crooked as hell” while spreading lies about the fraud in Minnesota.He's not interested in fighting fraud. He's interested in using fraud as a political weapon while enriching himself and his allies.My op-ed in the @theguardian.com ⬇️
[image or embed]
— Ilhan Omar (@ilhanmn.bsky.social) June 2, 2026 at 11:38 AM
During a Cabinet meeting last week, Trump launched into yet another tirade: “The Somalians, what they’ve done to Minnesota, the Somalians, crooked as hell. Ilhan Omar, crooked as hell,” he said. “They’re all crooks, and we got them, we got them. Now we’re putting the clamps on."
Trump was referring to a series of fraud cases in the state, in which organizations—many of which were run by Somali Americans—were found to have diverted hundreds of millions of dollars in federal funds meant for food assistance, disability, and childcare, mostly in investigations that began during the Biden administration.
But as Omar wrote on Tuesday, Trump "uses fraud as a political cudgel while protecting his donor base and enriching himself."
"The truth is, Trump doesn’t care about addressing fraud," she said. "He has repeatedly pardoned and rewarded some of the most brazen financial criminals."
As Omar detailed:
He pardoned Philip Esformes, convicted in what his own Department of Justice described as the “largest healthcare fraud scheme ever charged.”
He granted clemency to Lawrence Duran after a $205 million fraud conviction. He commuted Jason Galanis’ sentence and pardoned Devon Archer, who were both tied to tens of millions in fraud, and also pardoned Joseph Schwartz for a $38 million fraud scheme, and reality stars Todd and Julie Chrisley for multimillion-dollar bank fraud. He’s now defrauding the American people further by creating a $1.8 billion slush fund of taxpayer dollars to compensate people he pardoned for beating cops and ransacking the US Capitol on January 6 after they pleaded guilty or were convicted of such crimes.
After losing a court case and facing bipartisan backlash in Congress, acting Attorney General Todd Blanche confirmed on Tuesday that the administration was backing off the $1.8 billion fund.
Omar acknowledged the fraud cases in Minnesota, such as the Feeding Our Future nonprofit scandal, in which 65 people connected to the scheme have been convicted of stealing money intended to feed children during the Covid-19 pandemic.
"We should all collectively care about the damage that these criminals have done to public faith in programs that save lives and feed children," Omar said. "But instead of addressing the fraud equally and without exception, Trump and his cronies have turned combating fraud into a partisan spectacle defined by a level of racist vitriol that just years ago would have shocked most Republicans, not to mention the American people at large."
"While Minnesota leaders were prosecuting thieves, Trump was letting them out of prison," she added. "He enriches himself, his family profits from crypto deals, and world leaders understand that the presidency is now for sale. His underhanded operation racks up billions for his family and friends while working Americans struggle to afford basic necessities."
The Trump administration has used fraud cases in Minnesota to inflict a sort of collective economic punishment on its poorest residents.
Using outlandish allegations that Somalis were looting tens of billions from Medicaid, the administration has frozen more than $350 million in federal Medicaid reimbursements owed to Minnesota and threatened to withhold more than $2 billion annually, which state officials have warned will destabilize benefits for the 1.2 million Minnesotans who rely on the program.
"The reality is that Trump and Republicans are not interested in combating fraud and corruption or having a real conversation to address it. They are interested in ransacking the public good for their own profit," Omar said. "They are interested in clicks, outrage, and theatrics in order to deflect from their own corruption. The American people deserve better than a president who uses the pretense of accountability to punish his opponents and reward his allies."
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'Height of Corruption': DOJ-Trump Settlement Now Says IRS Will Never Again Probe His or His Family's Taxes
"The White House is a 24/7 grift machine and we should not stop being outraged about this," said Sen. Chris Murphy.
May 19, 2026
Less than a day after a $1.77 billion settlement announced in President Donald Trump's lawsuit against the Internal Revenue Service was denounced as "highway robbery" by one Democratic lawmaker, other members of Congress expressed disgust after it was reported that the taxpayer-funded deal had been updated by a top administration official to ensure the president and his family could potentially get away with defrauding the IRS in perpetuity.
A one-page document was posted on the US Department of Justice (DOJ) website early Tuesday morning, saying that under the settlement, the IRS is "forever barred and precluded" from prosecuting and pursuing any and all claims and other actions against Trump and his family members, regarding unpaid taxes.
The landmark judgement in a civil fraud case against Trump found that his two eldest son's were implicated in an extensive financial and tax fraud scheme along with the president.
The release specifically notes that it also applies to “tax returns filed before the effective date” of the settlement, which was Monday.
"The president is now exempt from our tax laws while everyone else has to obey them," said US Sen. Chris Murphy (D-Conn.). "Got it. It's just mind-blowing that is what's happening in America."
Politico reported on the document a day after 93 US House Democrats joined an amicus brief filed in Trump v. IRS, aiming to block the creation of a so-called "Anti-Weaponization Fund" as part of the deal for the president to drop his lawsuit against the tax agency, which he filed over a leak of his tax returns.
The "slush fund," as Rep. Jamie Raskin (D-Md.) called it, could be used to give monetary rewards to people convicted of felonies in connection with the January 6, 2021 attempted insurrection.
The one-page document that was attached to the settlement Tuesday was signed by acting Attorney General Todd Blanche.
US Rep. Pramila Jayapal (D-Wash.) called the preemptive and permanent blocking of any IRS enforcement against the Trump family "the height of corruption."
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