ST. PAUL, MN — Federal prosecutors now describe what happened in Minnesota as “industrial-scale fraud.” Investigators say the state became a hub for a massive theft of public money. The funds were meant to help people who needed it most, including kids who needed meals and families seeking autism-related services.

At first, many headlines focused on a $250 million food program scandal. Now federal officials say that figure may be just the start. Acting U.S. Attorney Joseph Thompson recently said the total exposure could be far larger, as much as $9 billion to $10 billion. That estimate is tied to $18 billion spent across 14 state-run programs since 2018, with up to half potentially paid out on fraudulent claims.

A nonprofit network built on fake meal counts

The story first exploded around Feeding Our Future, a nonprofit that said it was feeding thousands of children during the COVID-19 pandemic. Investigators later said many meal sites were not real operations. Some were empty lots or storefronts that existed only on paperwork.

So far, 78 people have been charged in this scheme alone. Prosecutors say the claims were often extreme. In one example, a defendant reported serving 6,000 meals a day in a town with fewer than 3,000 residents. Officials also say state leaders had warning signs as early as July 2019, yet payments continued.

“The magnitude cannot be overstated,” Thompson said at a recent press conference. “What we see in Minnesota is not a handful of bad actors. It is staggering, industrial-scale fraud.”

A reputation for easy money

Federal prosecutors say Minnesota’s oversight problems became so well-known that they sparked what some now call “fraud tourism.” This week, prosecutors charged two men from Philadelphia who allegedly traveled to Minneapolis after hearing the state’s programs were a “good opportunity to make money.”

The allegations go well beyond food programs. Investigators and auditors have pointed to major abuse risks across other state efforts.

Programs tied to major alleged abuse

• Autism Services (EIDBI): Prosecutors allege some companies billed Medicaid for therapy that never happened. They also say parents were paid kickbacks of up to $1,500 a month to enroll children who did not have an autism diagnosis.
• Housing Stabilization Services: This program was meant to help people facing homelessness. Costs reportedly jumped from $2.6 million to more than $100 million in just a few years, before the program was shut down in October 2025 amid widespread abuse claims.
• Frontline Worker Pay: Audits suggest funds went to ineligible applicants, including thousands of alleged “ghost” workers, draining money meant for people who worked through the peak of the pandemic.

Political fallout: Walz, Omar, and rising scrutiny

Pressure grows as the estimate climbs

As the potential fraud total moves closer to $10 billion, pressure has increased on Governor Tim Walz. Critics say the administration missed obvious warning signs and took a hands-off approach that left programs open to abuse.

In June 2024, the nonpartisan Office of the Legislative Auditor reported that the Minnesota Department of Education’s oversight was “inadequate” and “created opportunities for fraud.” Walz has said his administration reported concerns to the FBI. Court records also show the state resumed payments to Feeding Our Future even while suspecting criminal activity.

Omar’s district and concerns about overseas ties

Representative Ilhan Omar has faced criticism because many charged individuals are from the Somali-American community in her district. Omar has not been accused of personal wrongdoing. Still, federal investigators are looking into whether any stolen money was sent overseas, including possible ties to groups like al-Shabaab.

Omar has dismissed those concerns and pointed to the FBI, saying it should have flagged any links earlier if they existed. Critics respond that her office maintained close connections with people who were later convicted in the schemes.

Billions lost, and trust damaged

The scale is hard to ignore. A potential $10 billion loss works out to about $1,700 per person in Minnesota, based on the figures cited. Critics call it a historic breakdown in oversight and basic controls.

More charges, more audits, and a long cleanup

Federal investigators say more charges are on the way. The U.S. Attorney’s office describes the situation as a connected web of scams, not isolated cases.

Meanwhile, the Walz administration has ordered a third-party audit of 14 “high-risk” programs. Results are expected in late January 2026.

Minnesota is now left with a painful mix of financial loss and public anger. Investigators say some stolen funds went to luxury cars, international travel, and seaside real estate in East Africa. For many residents, the hardest part may be knowing how much money is already gone, and how hard it will be to recover.

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OKLAHOMA CITY – A federal grand jury has issued a 25-count indictment against a prominent Black Lives Matter (BLM) organiser in Oklahoma City, Tashella Sheri Amore Dickerson. The case has sent shockwaves through non-profit circles and social justice supporters.

Prosecutors claim that Dickerson, 52, executive director of Black Lives Matter Oklahoma City (BLMOKC), ran a long-term scheme to siphon at least $3.15 million in returned bail money and donations for her own benefit. Authorities say this represents a serious breach of public trust and could lead to severe criminal penalties.

The unsealed indictment charges Dickerson with 20 counts of wire fraud and five counts of money laundering. The U.S. Attorney’s Office for the Western District of Oklahoma, working with the FBI and IRS-Criminal Investigation, alleges that the misconduct took place over more than five years, from June 2020 through October 2025.

According to the indictment, the heart of the scheme involved Dickerson allegedly directing returned bail cheques, which donors believed would support a revolving bail fund or wider social justice work, into her own bank accounts rather than back into BLMOKC’s programmes.

Alleged Spending on Travel, Property, Luxury Shopping, and a Personal Car

Federal prosecutors say the money that donors thought would help people arrested during racial justice demonstrations instead supported Dickerson’s personal lifestyle. The indictment lays out a detailed list of alleged spending, including:

• International travel: Holidays for Dickerson and people close to her in high-end destinations such as Jamaica and the Dominican Republic.
• Property purchases: At least six properties in Oklahoma City, allegedly placed in her own name or in the name of a company she controlled, Equity International, LLC.
• Personal expenses: Tens of thousands of dollars at retail shops, along with at least $50,000 on food and grocery deliveries for her and her children.
• Vehicle purchase: A personal car registered in her own name.

Since 2020, BLMOKC has reportedly raised more than $5.6 million, much of it from online donors and national bail funds that surged after the murder of George Floyd. Because BLMOKC was not a tax-exempt charity, it worked with an Arizona-based non-profit, the Alliance for Global Justice (AFGJ), as its fiscal sponsor.

Under that agreement, all funds had to be used for tax-exempt purposes, and BLMOKC was not allowed to buy property without AFGJ’s approval.

Prosecutors allege that Dickerson filed misleading yearly reports with AFGJ. They say she hid her personal spending and falsely claimed that all funds went toward charitable, tax-exempt activities. According to the indictment, these reports helped keep the wire fraud scheme going.

Heavy Potential Penalties

If a jury convicts Dickerson, she faces significant prison time and financial penalties. Each wire fraud count carries a maximum of 20 years in federal prison and a fine of up to $250,000. Each money laundering count carries up to 10 years in prison and a fine of up to $250,000, or twice the value of the funds involved.

Shortly after the indictment became public, Dickerson posted a brief live video on her Facebook page. She has served as BLMOKC’s executive director since at least 2016. In the video, she told viewers she was “fine” and “safe” but did not directly address the detailed allegations.

“A lot of times when people come at you with these types of things it’s evidence that you are doing the work,” she said, without giving further explanation.

A Growing Pattern of Scrutiny Over BLM Finances

These federal charges against a well-known local BLM leader follow years of questions and criticism about how money has been managed across parts of the wider Black Lives Matter movement. For many supporters and donors, the case deepens concerns about accountability inside large social justice groups that received huge sums after 2020.

The Black Lives Matter Global Network Foundation (BLMGNF), a separate national body, has already dealt with intense public pressure over its own finances.

• The $6 million California property: BLMGNF drew widespread criticism when reports surfaced that it had used donor money to buy a $6 million luxury home in Studio City, California, in 2020. The foundation later said the property was intended as a “creative and community space”. The timing, price, and lack of early disclosure raised serious questions about how donations were handled.
• Founder’s property purchases: Co-founder Patrisse Cullors, who has since stepped down, came under fire for her own real estate deals. She rejected claims of wrongdoing and said her homes were bought with income from consulting work and book contracts. Even so, the reports fuelled concern over blurred lines between personal wealth and organisational funds among movement figures.
• Lawsuits and further fraud cases: BLMGNF was also sued by Black Lives Matter Grassroots, which accused a BLMGNF board member of diverting $10 million in donations. In a separate case, a self-described leader of BLM of Greater Atlanta was arrested and later pleaded guilty to wire fraud and money laundering after using about $200,000 in donor funds on personal spending.

Taken together with the new case against Tashella Dickerson, these episodes create a troubling picture of inconsistent financial controls inside certain parts of the decentralised Black Lives Matter network.

Donor Trust and the Purpose of Bail Funds

Bail funds play a key role in protest movements and wider efforts to challenge mass incarceration. They exist to help people who are jailed before trial simply because they cannot afford bail.

When money clearly set aside for that purpose is allegedly funnelled into private spending on holidays, property, and groceries, it does more than harm one organisation’s reputation. It can shake public faith in the cause as a whole.

Millions of people donated in the wake of George Floyd’s murder, expecting their money to support justice, legal defence, and community organising. The Dickerson indictment raises sharp concerns for those donors about where their contributions really went and who was watching over the accounts.

The investigation, led by the FBI and IRS, reflects growing federal interest in how non-profits manage large public donations, especially during moments of national crisis when money pours in quickly.

As Dickerson’s case moves through the courts, it will attract close attention from activists, donors, and other non-profit leaders. The legal process will decide her guilt or innocence, and she is entitled to the presumption of innocence.

Still, the detailed accusations are already having an effect. The claim that millions meant for justice work instead funded a life of comfort and luxury hangs heavily over not only BLMOKC, but parts of the wider movement and its promise of social change.

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LEWISTON, Maine- Maine’s Medicaid system, known as MaineCare, is under serious scrutiny after a series of alleged Somali fraud schemes drained millions of taxpayer dollars from the program. Federal and state investigators have tracked several cases that show a clear pattern of abuse, many tied to people of Somali origin working in health care and interpreter services in the Lewiston-Auburn area.

These schemes redirected money meant for low-income and medically fragile residents, raised doubts about oversight, and sparked public concern about how MaineCare is managed and protected.

The Somali Kickback Scheme

One of the most serious recent cases ended in 2021 with the sentencing of two Lewiston men, Abdirashid Ahmed, 41, and Garat Osman, 35. Both were ordered to repay more than $2.4 million to MaineCare. Ahmed and Osman, who worked as Somali interpreters, pleaded guilty to health care fraud tied to a scheme involving a local counseling agency, Facing Change.

Court records show the fraud took place from late 2015 through 2018. Prosecutors said Ahmed asked Nancy Ludwig, the owner of Facing Change, for kickbacks in return for sending MaineCare patients to her clinic. Once clients arrived, Ahmed, Osman, and others joined with Ludwig to file false claims with MaineCare.

The group billed for services that were never provided or inflated the level of care given. In many cases, they claimed both counseling and interpreter services, which did not happen at all.

When MaineCare rules changed in 2016, the group allegedly found a way to keep the money flowing. According to the government, Ludwig and Ahmed agreed to change many patients’ diagnoses to schizophrenia so they would still qualify for high-paying services at Facing Change.

When the MaineCare Program Integrity Unit showed up to audit the agency in fall 2016, the people involved did not stop. Investigators say they created fake records to back up their false claims and mislead auditors. Osman, who joined the plot in late 2016, set up his own interpreter company and used it to keep the fraud going and move the illegal payments.

Acting U.S. Attorney Donald E. Clark praised investigators and made clear how serious the case was, saying that federal and state agencies will keep going after anyone who cheats public health programs. Phillip M. Coyne, Special Agent in Charge for HHS-OIG, said that health care fraud drains money that should help the most vulnerable patients.

Ahmed received a two-year prison sentence. Osman was sentenced to three years of probation, along with heavy restitution and financial penalties.

Early Home Care Fraud Case

The interpreter case did not come out of nowhere. Years earlier, in 2012, another Lewiston resident, Somali native Mohdi M. Ali, 56, pleaded guilty to several federal charges, including making false statements involving a health care benefit program.

Ali was the former head of Decent Home Care Inc., a company that provided nonmedical services to seniors and people with disabilities under MaineCare. According to prosecutors, Ali obtained a Social Security number and an alien registration card by lying about his background, including falsely claiming that he had lived in refugee camps in Kenya.

Decent Home Care Inc. took in more than $1 million from MaineCare in 2008 alone. Ali used his fraudulently obtained documents to sign up for MaineCare benefits in 2006, the same year he created his company.

A 2007 review found that Ali had lied to the Maine Department of Health and Human Services (DHHS). He hid about $29,000 in bank savings and $24,000 in wages he earned as the executive director of his own firm. By hiding that income and those assets, he got approved as a MaineCare provider for his company.

Ali faced a possible 15-year prison sentence and up to $500,000 in fines. As part of his plea deal, he also agreed that he would be removed to Canada after serving any prison time. His case showed how MaineCare can be exploited when someone is willing to lie about their status, income, and assets.

The Cost to Maine Residents

Taken together, these fraud cases reveal long-term weaknesses in how MaineCare is monitored. The numbers are large on their own, with more than $2.4 million tied to the interpreter scheme and more than $1 million linked to Decent Home Care. The broader impact is even larger, since every stolen dollar is money that does not go to people who need health care help.

The Maine Attorney General’s Healthcare Crimes Unit, which receives federal funding, leads many of these investigations. State officials are encouraging residents and health care workers to report suspicious billing, fake records, or unusual patterns of service use. Public tips often help stop fraud before it grows.

The fact that several high-profile cases involve members of the Somali community has caused tension in Lewiston-Auburn and beyond. Community leaders, providers, and state agencies are debating how to strengthen background checks and monitoring for health care and interpreter services, while also avoiding unfair treatment of honest providers.

Federal and state law enforcement agencies say they will keep working together to track and prosecute Medicaid fraud. Their message is direct: those who abuse MaineCare for personal gain can expect aggressive investigation and serious legal consequences.

For a broader look at similar issues in another state, the video Unmasking the Minnesota Somali Fraud Network discusses alleged fraud involving Somalis and government-funded programs, which mirrors some of the patterns seen in the MaineCare cases.

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