A former Minnesota state trooper has accused state officials of obstructing investigations into widespread child care fraud, alleging the system’s exploitation by scammers was knowingly ignored by leadership since at least 2009.
Jay Swanson, a former Minnesota state trooper and Department of Human Services investigator, testified before the Minnesota House Fraud Prevention and State Agency Oversight Policy Committee on Tuesday. He stated that Somali refugees were exploiting the state’s child care assistance program, which he claims has become internationally known as the easiest jurisdiction to commit such fraud.
Swanson revealed that he was ordered by supervisors to delete evidence of fraud and faced harassment after refusing, calling such actions illegal. The fraudulent scheme involved daycare centers billing for services not provided, with federal prosecutors estimating losses exceeding $9 billion from taxpayer funds. Despite these findings, Swanson’s investigative unit was dismantled under Governor Tim Walz.
Swanson cited a key quote: “They had heard you could run the scam in a number of different states, but it was easiest and you could make the most money doing it in Minnesota.”
In recent months, around 98 people have been charged and 64 convicted in connection with Minnesota fraud cases, including many from the Somali community. Governor Walz abandoned his reelection bid as coverage of the scandal escalated online and recently claimed credit for cracking down on fraud, despite whistleblowers indicating that his administration actively suppressed earlier investigations.
Vice President J.D. Vance, serving as the Trump administration’s anti-fraud czar, warned: “We’re not going to let anybody who committed a crime off the hook, and in fact, if you are a senior officer [in Minnesota], if you’re the Attorney General or the Governor, or any other elected official, we’re going to look extra hard at what you knew and when you knew it and how connected your actions were to this fraud scheme.”
