>> Continued From the Previous Page <<
“I am notifying you that effective immediately and until further notice, the SBA is halting the disbursement of federal funds to SBA resource partners operating in the state of Minnesota, totaling over $5.5 million in annual support,” Loeffler wrote.
That funding freeze includes $2.22 million for Small Business Development Centers, $450,000 for women’s business centers, $2.6 million in microloan programs, and roughly $550,000 in other federal disbursements.
Loeffler made clear that this was not a political decision. It was a trust issue.
“This action is the result of a fundamental breakdown in the public trust,” she stated. “Under your leadership, Minnesota failed to safeguard taxpayer dollars, and SBA will not continue to place federal resources at risk in a state where oversight measures are ignored and accountability is abandoned.”
Fraud numbers that defy belief
The SBA’s internal review uncovered a disturbing pattern.
Investigators found that individuals already indicted in Minnesota’s massive COVID fraud schemes received at least $3 million in Paycheck Protection Program loans.
Worse still, the SBA flagged an additional 13,600 potentially fraudulent PPP loans totaling approximately $430 million.
“With dozens of investigations underway, the conclusion is unavoidable: Minnesota cannot be trusted to administer federal tax dollars,” Loeffler concluded. “Its socialist welfare system has enabled fraud at industrial scale, at the expense of honest Americans.”
Federal prosecutors reveal a staggering reality
House Oversight Committee Chairman James Comer summed it up bluntly during an appearance on Fox News.
“The walls are caving in on Tim Walz.”
That assessment appears increasingly accurate.
Federal prosecutors disclosed that 14 Minnesota Medicaid programs labeled “high risk” for fraud have burned through $18 billion since 2018 alone.
First Assistant U.S. Attorney Joe Thompson delivered jaw-dropping testimony during a December 18 press conference.
“When I say significant amount, I’m talking on the order of half or more,” Thompson said when describing how much of that $18 billion is likely fraudulent.
That suggests as much as $9 billion in taxpayer money may have been stolen under Walz’s leadership.
“What we see in Minnesota is not a handful of bad actors committing crimes,” Thompson explained. “It’s a staggering, industrial-scale fraud. It’s swamping Minnesota.”
Fraud tourism and disappearing criminals
Prosecutors also revealed how Minnesota became a magnet for criminals nationwide.
Two men from Philadelphia learned that Minnesota’s Housing Stabilization Services program was easy to exploit. They registered companies, returned home, and submitted fake Medicaid claims remotely.
Thompson described the scheme as “fraud tourism.”
Those two men alone stole $3.5 million.
Another defendant submitted $1.4 million in false claims, converted the money into cryptocurrency, and fled the country after receiving a subpoena.
Comer escalates the investigation
Chairman Comer has now expanded the House Oversight Committee probe, demanding transcribed interviews from seven current and former Minnesota officials.
The requests target senior figures inside the Minnesota Departments of Human Services and Education who were responsible for oversight.
Comer is also seeking briefings from the Treasury Department and Department of Justice by January 2025.
“Whistleblowers have made it clear that American taxpayers were defrauded in Minnesota, raising serious questions about whether Governor Walz and Attorney General Ellison failed to act or was complicit in the theft,” Comer said.
The committee has warned that Walz’s administration may have known about the fraud and deliberately chose inaction.
Politics before taxpayers
Federal prosecutors revealed that more than 90 percent of defendants charged in major fraud cases are of Somali descent.
Walz dismissed early warnings and accused critics of “demonizing an entire population.”
His spokesperson later tried to frame the investigation as a “coordinated political attack.”
But records from the Biden-Harris administration show whistleblowers raised alarms for years.
Now, Comer says the investigation is closing in fast.
“We’re going to try to identify who was responsible for this,” Comer explained. “We’re going to try to identify banks that we can subpoena their bank records so we can follow the money to see how much was taken, who took it, and then who do we need to hold accountable and hopefully we’ll have some criminal referrals at the end of the investigation.”
A national career in free fall
Tim Walz spent 2024 auditioning for national office and branding himself as a Democrat leader.
Today, he is drowning in what may be the largest government fraud scandal in U.S. history.
The federal money has stopped.
The investigations are accelerating.
And the walls are, indeed, caving in.
