The U.S. Department of Labor (DOL) is currently assessing Minnesota’s unemployment insurance (UI) program due to the recent uncovering of a fraud scheme affecting the state’s welfare system. Secretary Lori Chavez Delemer expressed her dismay at the abusive practices involved.
Last month, City Journal reporters Ryan Thorpe and Christopher F. Rufo uncovered that millions in Medicaid funds have been misappropriated, benefitting both Minnesota taxpayers and al-Shabaab, a terrorist group with ties to al-Qaeda.
Breitbart News has extensively reported on the rampant fraud and corruption within Minnesota’s Somali immigrant community. Allegedly, around 70 individuals have been arrested for their involvement. In July, several suspects faced charges for swindling over $250 million intended for hungry children during the COVID-19 pandemic, and some were also implicated in similar schemes involving the Paycheck Protection Program (PPP).
A union representing around 500 Minnesota government employees accused Democratic Governor Tim Walz of ignoring ongoing alerts about extensive Somali fraud in state aid programs, holding him completely accountable for the situation. Their statement gained traction on social media.
“Tim Walz has systematically retaliated against whistleblowers through fear and intimidation, making efforts to discredit reports of fraud,” state officials claimed.
The DOL is broadening its investigation into UI fraud nationwide, with reports revealing that alleged fraudulent UI payments during the pandemic in Maryland alone totaled an astonishing $520 million.
In a letter sent to the Minnesota Department of Employment and Economic Development, the DOL announced plans to utilize a specialized UI strike team to carry out targeted on-site reviews.
“I am appalled to learn about potential fraud across various Minnesota benefit programs. Any misuse of UI systems is completely unacceptable. I have faith that our dedicated team will uncover the truth and report back directly to me,” stated Chavez Delemer. “Our commitment to protecting American workers is unwavering, and I will not tolerate any wrongdoing that undermines the integrity of this vital program.”
She further addressed the issue in a podcast, where she criticized the lack of Congressional oversight regarding the UI Fund.
“This is a fund that people depend on. It was established for a very specific purpose… to serve as a bridge for those who lose their jobs,” she explained. “That makes sense… But during COVID-19, with the CARES Act, we saw an influx of funds into the system. This could lead to inflation, but, honestly, what’s concerning now is that this has turned into a criminal operation… No one was paying attention; Congress wasn’t overseeing it.”
She pointed out extensive fraud in states run by Democrats, mentioning Minnesota and Oregon, where the DOL has reportedly returned a staggering $1.4 billion to the U.S. Treasury.
“There were numerous requests for waivers to keep these programs running to support the unemployed longer,” said Chavez Delemer. “We are witnessing fraud, and we have reclaimed a significant amount… $1.4 billion has already been sent back to the Treasury… this is just scratching the surface.”
“And now we’re seeing more fraud emerging from Minnesota,” she added. “We’ve notified the state that we’ll be deploying one of our unemployment insurance strike teams to uncover where else fraud might be taking place. Because the American public deserves better.”
