Minnesota’s Somali Fraud Scandal Blows Wide Open — But the Real Crime Is How the System Let It Happen

SBA Halts All Funding to Minnesota After Explosive Fraud Discovery

The Small Business Administration (SBA), under Administrator Kelly Loeffler, has completely frozen all grants to the state of Minnesota.

Why? Because what started as a routine audit turned into the largest suspected fraud scheme tied to federal COVID-era programs in recent memory.

“The scope of this international scam is still unknown, likely in the billions,” Loeffler said. “We’re stopping all grant funding to stop the rampant waste of taxpayer dollars.”

Let that sink in.

Billions of dollars. Vanished. Stolen. Abused.

And the bureaucrats in charge had no idea until years later—when an independent journalist and a few fed-up whistleblowers started raising alarm bells.

What We Know: PPP Loans, Somali Networks, and State Complicity

According to the SBA’s own findings:

• Over $430 million in PPP loans in Minnesota are suspected to be fraudulent.
• At least 13,600 separate loans are now under review.
• $3 million in taxpayer money went directly to individuals already indicted in an earlier $1 billion Somali fraud scheme.

This isn’t just one bad actor. This isn’t a glitch.

It looks more and more like an industrial-scale criminal enterprise—enabled by negligent state leadership and a federal government too bloated to keep track of its own money.

Governor Tim Walz (D-MN) has been accused of ignoring warnings, failing to enforce state-level protections, and, worst of all, turning a blind eye in the name of political optics.

Let’s Be Clear: This Isn’t About Race. It’s About Responsibility.

Is this fraud connected to Somali migrants? In part, yes. That’s what the DOJ indictments and federal reports suggest.

But this isn’t about nationality or ethnicity.

It’s about accountability.

And the real question for every American is this:

Why did the federal government dump trillions into programs like PPP and SBA grants—with almost zero safeguards—then act surprised when wolves showed up to the slaughter?

You don’t blame the wolves.
You blame the idiots who left the gates open.

Where Was the Oversight?

The entire pandemic-era spending spree was a gift to criminals. We’re talking:

• Loopholes
• No ID verification
• No asset checks
• No business audits
• Little to no enforcement for years

It wasn’t just Minnesota. We’ve seen similar fraud in California, New York, Texas, and Florida. But in this case, Minnesota became the epicenter because state officials refused to enforce even the basic rules.

“State officials built an industrial-scale crime ring to rip off hardworking Americans,” Loeffler told journalist Benny Johnson.

That’s not hyperbole. That’s a federal administrator describing a state government as complicit in economic sabotage.

This Is Why Americans Don’t Trust the System Anymore

Let’s break this down for the everyday American:

• You pay your taxes.
• You follow the rules.
• You watch your dollar shrink from inflation.
• Meanwhile, foreign networks and state-protected fraudsters loot the treasury with zero consequences.

That’s the America we’re living in.

This isn't just a Minnesota scandal. It's a preview of collapse.

Because when the government can’t track where your money is going, and refuses to fix the system, what happens next?

They print more money.
They raise your taxes.
They blame you for the shortfall.

And who profits?
The elites. The corrupt. The connected.

For DeDollarize Readers, This Is a Case Study in How Empires Rot From Within

This is exactly what we warn about.

• A bloated federal government prints fake money to "stimulate the economy."
• The funds are handed off to state cronies and shadowy contractors.
• Oversight is a joke.
• And in the end, the middle class pays the price.

The dollar isn’t just dying because of global trade.
It’s dying because corruption is now baked into the system.

Whether it’s a Somali fraud ring in Minneapolis or a defense contractor in D.C., the game is rigged, and it’s rigged against you.

What Needs to Happen Now

If there’s any justice left in this country, here’s what comes next:

• Full criminal prosecutions for anyone involved—no matter their title, status, or political connections
• Immediate audits of all SBA and PPP disbursements across every state
• Public accountability for governors and local officials who allowed fraud to flourish
• A permanent end to reckless money-printing programs with zero transparency

Until then, every single taxpayer should treat these programs for what they are:

Wealth transfer schemes that benefit criminals and crush the working class.

Final Thought: Don’t Be Distracted by the Outrage—Watch the Pattern

The media will do what it always does:

• Frame this as racism
• Blame the "far right"
• Ignore the billions gone
• Distract you with celebrity scandals or sports scores

But you know better.

This is what system failure looks like—where lawlessness meets laziness at the taxpayer's expense.

And unless we start holding these agencies, governors, and federal bureaucrats accountable, this is just the beginning.

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