Claims DHS Pressured Him to Hide Fraud, Unit Disbanded [WATCH]

A former Minnesota state trooper testified this week that officials within the state’s Department of Human Services attempted to pressure him into withholding evidence related to alleged fraud in a taxpayer-funded child care program, raising new questions about oversight and accountability in the state, as reported by the New York Post.

Jay Swanson, who previously served as a criminal investigator for DHS, delivered testimony Tuesday before the Minnesota House Fraud Prevention and State Agency Oversight Policy Committee. During the hearing, he alleged that supervisors instructed him to alter or remove findings tied to fraud within the Child Care Assistance Program.

Swanson said the request came while he was responding to inquiries from the Minnesota Legislature regarding irregularities within the program. According to his testimony, a DHS official directed him to submit his responses through agency leadership instead of directly to legislative auditors.

Former DHS fraud investigator delivers shocking testimony, says state agency harassed his team

“I wish I could tell you that these types of incidents were rare, but they weren’t. This is what our team dealt with on a weekly basis,” Jay Swanson told lawmakers. pic.twitter.com/MGTlO2BGSJ— Alpha News (@AlphaNews) April 29, 2026

After doing so, he said a supervisor confronted him and demanded that portions of his findings be withdrawn.

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“I then advised this official that I believed what they were telling me to do was illegal,” Swanson testified.

He further stated that days later, the same official returned and warned him that his findings would lead to consequences, telling him, “you better be ready for the s–t storm that’s coming your way.”

Swanson’s testimony described an environment in which investigators examining potential fraud were allegedly subjected to pressure, harassment, and internal resistance. He said members of his unit faced continued pushback as they attempted to pursue findings tied to the misuse of public funds.

The investigation centered on allegations of fraudulent billing practices within child care centers participating in the state’s assistance program. Swanson said his duties included interviewing facility owners and employees, during which he learned of broader concerns about systemic abuse.

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“They had heard you could run the scam in a number of different states, but it was easiest, and you could make the most money doing it in Minnesota,” he said, referring to statements he heard from individuals familiar with the schemes.

Swanson also referenced a 2017 federal case involving Salama Child Care Center in Minneapolis. The center’s owner was indicted, later pleaded guilty in 2018, and was sentenced to two years in prison along with $1.4 million in restitution.

Around the same period, the Minnesota Legislature directed the Office of the Legislative Auditor to conduct a special review of the Child Care Assistance Program. Swanson said DHS leadership intervened during that process and sought to manage communications with auditors.

He also testified that DHS hired a consulting firm for approximately $90,000 to review his findings, noting that the firm lacked experience in public benefit fraud investigations and ultimately dismissed concerns as unsubstantiated.

Republican lawmakers at the hearing said that after Gov. Tim Walz took office in 2019, the investigative unit responsible for examining fraud, waste, and abuse within DHS was later eliminated. State Rep. Kristin Robbins said the Office of Inspector General within DHS had its investigative authority restricted.

“They were told they could no longer do criminal investigations. They were told they could no longer meet with the Bureau of Criminal Apprehension agents that were assigned to them without supervisors’ approval,” Robbins said.

Recent federal action has brought renewed attention to the issue. The FBI conducted raids on multiple child care centers in Minnesota this week, part of a broader investigation into alleged fraud involving public funds. Federal authorities have charged 98 individuals since 2022, with 64 convictions reported.

BREAKING: Jay Swanson, a former state trooper who investigated child care fraud in Minnesota, provides damning testimony to the House fraud committee

Scammers would “say they first heard about it while in the refugee camp in Kenya … they had heard you could run the scam in… pic.twitter.com/AyJizmMJQa— Alpha News (@AlphaNews) April 28, 2026

Assistant U.S. Attorney Joe Thompson estimated that the total fraud could exceed $9 billion, while President Donald Trump suggested the figure could be as high as $19 billion.

Following the raids, Walz issued a statement on X addressing fraud enforcement efforts.

“If you commit fraud in Minnesota, you’re going to get caught — and that’s exactly what we saw today. We catch criminals when state and federal agencies share information. Joint investigations work, and securing justice depends on it,” Walz wrote.

Federal officials responded to the statement. FBI Director Kash Patel said, “Come again? This FBI and DOJ, with our DHS partners, drafted and executed every search warrant today. But go ahead and take credit for our work while we smoke out the fraud plaguing Minnesota under your governorship.”

Department of Homeland Security chief Markwayne Mullin also criticized Walz, stating he had “zero credibility” on the issue.

The allegations and testimony continue to be reviewed as federal and state investigations into the child care program proceed.

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