House Oversight Committee Chairman James Comer announced that his committee is launching its first hearing into what he described as massive fraud within Minnesota’s taxpayer-funded social services programs, citing billions of dollars allegedly stolen from programs intended to serve vulnerable Americans.
Comer opened the hearing by formally calling the committee to order and outlining the scope of the investigation.
“The hearing on the Committee on Oversight government reform will come to order. Want to welcome everyone here today without objection. The Chair may declare a recess at any time. I now recognize myself for the purpose of making an opening statement,” Comer said.
He said the investigation centers on widespread abuse of Minnesota’s social services system, which he noted is funded by American taxpayers.
“Good morning today, the House Oversight Committee is holding its first hearing on the massive fraud in Minnesota’s Social Services Program,” Comer said.
“Minnesota social services, which are funded by you the American taxpayer, are being ripped off. The most vulnerable are suffering as a result.”
According to Comer, federal prosecutors have estimated that the alleged fraud totals at least $9 billion and involves individuals exploiting programs designed to help children, the disabled, and low-income Americans.
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“Federal prosecutors estimate that these criminals have stolen at least $9 billion. The fraudsters, many of whom are from the Minnesota Somali community, have stolen from programs meant to feed needy kids, provide services to autistic children, house low-income and disabled Americans, and provide health care to vulnerable Medicaid recipients,” Comer said.
He accused those involved of enriching themselves while failing to deliver the services they claimed to provide.
“Fraudsters like these take millions to enrich themselves while providing nothing, overstating or outright faking the services,” Comer said.
Comer posed a series of questions highlighting what he described as the real-world consequences of the alleged fraud.
“How many children have gone hungry because fraudsters stole money that was intended to provide them with food?” he asked.
“How many autistic children were denied services because fraudsters instead sent this money overseas? How many low income seniors, people with disabilities or those with mental illnesses, were denied access to housing because fraudsters drained resources and pocketed the money for themselves.”
He described the scale of the alleged misconduct as extensive and warned that additional fraud may still be uncovered.
“The breadth and depth of this fraud is breathtaking, and I fear that this is just the tip of the iceberg,” Comer said.
Comer also referenced ongoing federal investigations into other Minnesota programs, including a case involving a vulnerable individual.
“The US Department of Justice is already investigating another Minnesota service program after a disabled man battling drug addiction under the care of a fraudulent full time provider died because of neglect,” he said.
He criticized Minnesota’s Democratic leadership, accusing state officials of failing to stop the fraud or allowing it to continue unchecked.
“Governor Tim Walz, Attorney General Keith Ellison, and Minnesota’s Democrat leadership have either been asleep at the wheel or complicit in these crimes,” Comer said.
Comer questioned how such large-scale fraud could persist for years without intervention.
“How could they allow this massive fraud to go on for years?” he asked.
He concluded by stating the purpose of the committee’s work going forward.
“This is why we’re here today. We must expose this theft of taxpayer dollars and hold everybody accountable who let it happen today,” Comer said.
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