A massive fraud scheme involving the disappearance of up to $9 billion in US taxpayer money in the state of Minnesota was uncovered by 23-year-old YouTuber Nick Shirley.
In his documentary, Shirley maps the fictitious operation of Somali social service centers subsidized by state funds, which were supposed to be dedicated to childcare.
The video exposing massive fraud in state subsidies at aid centers has had tens of millions of views and has been commented on by Vice President JD Vance and former head of the Department of Government Efficiency (DOGE) Elon Musk.
The US Department of Health and Human Services subsequently announced that it was freezing state payments for child care until a federal investigation into the suspected fraud was completed.
A photograph of the Center for Quality Education from Nick Shirley's documentary, in which its name was misspelled, became iconic. The word "Learing" (Education) contained a spelling error, as it was missing the letter "r," and the center was thus named the "Quality Learing Center."
Non-profit organization at the center of fraud
The centers were supposed to provide meals to children in need during the pandemic, housing assistance under the Medicaid program, and other programs to help families in need. The non-profit organization Feeding Our Future, which participates in social programs, was supposed to use the funds to provide food for children in need, but this and other programs turned out to be a cover for fraudulent activities, especially on the part of representatives of the Somali community.
Feeding Our Future was behind a fraud worth approximately $300 million, in which 57 people were convicted, and a total of 78 people have been charged with various crimes within this organization.
According to the prosecution, this organization was "at the center of the largest COVID-19-related fraud in the country," in which the defendants misused state subsidies intended for food for children, as well as funds intended for autistic people. Court documents also mention the "recruitment of children" to artificially increase the number of children for whom subsidies were requested.
The prosecutor speaks of damages amounting to more than $9 billion.
Federal prosecutor Joseph H. Thompson claims that more than half of the total $18 billion in state subsidies in Minnesota since 2018 may have been stolen, citing a multi-layered fraud scheme.
According to the prosecutor's office, the companies involved in the fraud were set up to provide no services, yet they submitted applications for federal funds to pay for fictitious work. They then used the funds for international travel, luxury vehicles, and a lavish lifestyle.
According to the indictment, the fraud mechanism consisted of creating fictitious counts of meals served and other claimable items, which the defendants then had reimbursed. They issued false invoices for the services, which were covered by shell companies through which the money flowed abroad.
Representatives of the Somali community are identified as the main suspects in the entire fraud scheme, as according to the Minnesota prosecutor's office, 82 of the 92 defendants are American citizens of Somali origin. Another problem is that the Somalis sent the money from the fraud back to Somalia, where, according to the City Journal news portal, it could have fallen into the hands of the terrorist group al-Shabaab.
Prosecutor Thompson admitted that the money went to Somalia, but found no evidence that the defendants supported terrorist organizations. The massive fraud resulted in a fundamental change in legislation on state support for social services, which was significantly tightened. However, it remains questionable whether people in genuine need will actually receive the necessary assistance as a result of these changes.
A significant consequence of the exposure of the so-called Somali scheme was the resignation of Minnesota Governor Tim Walz from the upcoming election for the position of governor, which he had held since 2018. In his speech regarding his withdrawal from the upcoming election, Walz mentioned "right-wing conspiracy YouTubers" in the context of Somali fraud, referring to Nick Shirley and his documentary, which started the whole scandal.
Initial investigation halted by accusations of racism
The entire fraudulent scheme and theft of billions of dollars could have been prevented if the competent authorities had not been intimidated by unfounded accusations of racism in the past.
In 2019, the Minnesota Department of Education (MDE) identified unusual increases in meal reimbursement claims (unrealistically high meal counts) reported by Feeding Our Future in its funding applications. Officials attempted to limit or suspend funding for the non-profit organization and began investigating the entire suspicion.
However, Feeding Our Future, a nonprofit organization composed of Somali Americans, filed lawsuits against the MDE, claiming discrimination based on race, nationality, and religion. Under pressure from lawsuits and accusations of racism, which were also spread through the media, the state agency stopped the investigation and not only continued to pay out federal funds, but also stopped auditing these entities for fear of further lawsuits and negative media coverage.
In 2022, it became clear that the officials' suspicions were based on objective facts. Feeding Our Future leaders Aimee Bock and Salim Said were convicted in federal criminal proceedings for fraud in a federally funded program.
Labels of racism enabled a massive increase in crime
Somali fraudsters were thus able to boldly and undisturbedly steal government money, and while they initially "dared" to steal hundreds of millions of dollars, their loot gradually climbed to an incredible billion. All it took to gain practical immunity from prosecution was an accusation of racism and the criminally weak character of the competent authorities, who, for fear of being labeled, turned a blind eye to the rampant and obvious theft.
In this case, too, Somali Americans were able to continue their criminal activities because the state and its representatives preferred to turn a blind eye when it came to criminal activity by members of a minority group.
Also noteworthy is a viral video in which the manager of one of the Somali centers claims that someone broke in and stole documentation proving the children's participation in the center and other documents confirming the center's activities.
However, according to the local police, the injured party did not report any loss. In this case, too, the Somali manager is accompanied by a woman with a telling sign reading "Racism has no place in a children's center."
Fear of racism covered up the most heinous crimes of pedophiles
The public could see a similar double standard on the part of the authorities in an even more heinous case of British "blindness" in investigating and exposing gangs composed of men of Pakistani origin. Despite the huge number of cases (thousands) of abuse of white girls by Pakistanis, the British local authorities preferred to turn a blind eye and sometimes even actively covered up the perpetrators, just so they would not be labeled racist.
Labeling racism has thus become a lucrative criminal business in which members of minorities abuse their position to commit mass or particularly serious crimes. All they have to do is shout "racism" and, with the support of the media, they are guaranteed immunity and the undisturbed continuation of their criminal activities.
All this is happening not only because the positions of authority are held by weak or ideologically blinded people who lack the qualifications to perform reliable control, but also to a large extent because they are direct accomplices of criminals.
We must not forget the "softer version of fear," when countries such as Germany were afraid to publish objective crime statistics because they would have featured members of minorities prominently—as if the problem were not the commission of crimes, but the very fact that they had to report them.
The protection of pedophiles, but also turning a blind eye to the abuse of social programs for children with disabilities, has a common denominator—the fear of being labeled a racist. However, covering up a crime just because the perpetrator has a different skin color means becoming an accomplice. And accomplices to such crimes should be judged in the same way as those who directly committed them.
Devaluation of concepts and applause for extremists
In addition to actively or passively aiding and abetting crime, such people also devalue concepts such as racism. Progressive politicians and activists around the world have contributed significantly to the fact that terms such as "fascist" and "Nazi" mean almost nothing today, as they have labeled anyone who disagrees with them.
The same is true of the term "racist." If it is overused in inappropriate situations or misused to cover up crimes, it loses its important function of labeling an unacceptable trait in society. Intimidation with legal sanctions in connection with this label, as was the case with discrimination lawsuits by a fraudulent non-profit organization, is far beyond the limits of what is acceptable.
If everyone is a racist whenever it is necessary to objectively control or punish a member of a minority, this label will lose its meaning. Members of extremist movements are already applauding progressive ideologues who have devalued such terms in society.
Somali fraudsters (and they are not the only ones) were well aware of the power of intimidation through labeling as racist. Pakistani pedophile gangs were also aware of this. After all, until recently, this was a successful political tactic used by their progressive protectors against their opponents. They used it so often that it lost its power—at the cost of extremists now trying to relativize their own crimes.
The rule of law must fight crime regardless of its origin. Whether it is committed by a member of a minority or covered up by "conscious" officials or other competent persons.