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Seven defendants were brought to trial over a $40 million slice of the scheme; five were convicted. Yet the rot goes deeper. The FBI is still investigating an incident in which a Somali woman allegedly tried to bribe a juror with $120,000 in cash, raising new concerns about the breadth and boldness of the criminal network.
And the $250 million scandal, shocking as it was, wasn’t the whole story. According to The New York Times, “Federal prosecutors say that 59 people have been convicted in those schemes so far, and that more than $1 billion in taxpayers’ money has been stolen in three plots they are investigating.”
Despite the mounting evidence, Walz has repeatedly downplayed concerns. During a recent interview with NBC’s Kristen Welker, the governor defended Minnesota’s system by insisting the state is simply so successful that it attracts opportunists.
When pressed on whether he accepts responsibility, Welker asked:
“Do you take responsibility for failing to stop this fraud in your state?”
Walz deflected, saying:
“Well, certainly, I take responsibility for putting people in jail… But that attracts criminals… to demonize an entire community on the actions of a few, it’s lazy!”
That answer did not sit well with DHS employees — who then issued an unprecedented collective statement accusing Walz of personally enabling the fraud he now pretends to condemn.
Their statement begins with a blunt declaration:
“Tim Walz is 100% responsible for massive fraud in Minnesota.”
They say whistleblowers attempted to alert Walz early but were met with retaliation instead of help. According to the group:
“Tim Walz systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports.”
Instead of addressing the problem, they say, the governor’s allies in the Democratic–Farmer–Labor (DFL) Party and local media smeared employees who tried to sound the alarm.
DHS workers also accuse Walz of weakening the Office of the Legislative Auditor to prevent meaningful oversight. They claim agency leaders appointed by the governor deliberately ignored audits, buried evidence, and even threatened families of whistleblowers.
Their list of implicated agency heads includes Shireen Gandhi, Jess Geil, Jodi Harpstead, Natasha Merz, and Eric Grumdahl — none of whom have faced accountability.
The statement paints a picture of a governor who built a political machine designed to protect his inner circle, reward loyalists with cushy leadership jobs, and mute critics.
One particularly damning section reads:
“Fundamentally, Tim Walz is dishonest, lacks ethics and integrity, has poor leadership abilities, and has never taken any accountability for his role in fraud.”
Employees say Walz repeatedly misled the public, including by touting a supposed budget surplus. Their statement counters that claim:
“Fact is, Minnesota never had a surplus… we’d be in a deficit [without ARPA funds].”
They accuse Walz of using temporary federal COVID money to expand state bureaucracy and hand out top-paying positions to political allies.
The whistleblowers say they can’t fight this alone, concluding:
“We need all the help we can get as Tim Walz’s agency leaders have upped their brazen approach in covering up their knowledge of fraud.”
A follow-up post from the group — now more than 480 employees strong — delivered an even harsher blow:
“Having worked directly with you, Tim Walz, we don’t need to see MRI results to know that there is a DISCONNECT in not only your intellectual abilities but also, your ability to understand ethics & good governance.”
Minnesota is now facing a political earthquake. If even a fraction of these accusations proves true, this could become one of the most significant government fraud scandals in modern state history — and a devastating reckoning for Governor Tim Walz.
