CaliToday (14/12/2025): A sprawling web of deceit costing state and federal taxpayers at least $1 billion is unraveling in Minnesota, exposing a brazen network of "ghost" companies, non-existent addresses, and fictitious billing schemes.
 |
| SBA Admin. Kelly Loeffler, left; Gov. Tim Walz, right. |
An on-the-ground investigation by Fox News Digital has peeled back the layers of what officials are calling one of the most egregious frauds in state history. From empty parking lots to graffiti-covered walls, reporters visited the alleged headquarters of non-profits that claimed to be feeding the hungry and housing the poor only to find that, in many cases, the businesses simply did not exist.
The "Ghost Hub" at Griggs Midway
At the center of the investigation lies the Griggs Midway building in St. Paul, a location Acting U.S. Attorney Joseph H. Thompson has identified as a hive of criminal activity. According to federal prosecutors, the building was listed as the headquarters for 22 separate entities linked to Housing Support Services (HSS) and other aid programs.
Thompson described these entities as "entirely fictitious," created solely to siphon funds from the Medicaid system. Between January 2024 and May 2025, these 22 shell companies allegedly submitted $8 million in fraudulent claims.
However, a physical inspection of the property reveals a starkly different reality. Fox News Digital reporters found the southern section of the massive complex largely abandoned, with "For Lease" signs hanging over empty windows. While legitimate businesses operate on the west side of the ground floor, they have no connection to the dozens of entities claiming to operate there.
Phantom Suites and Sushi Shops
The fraud extends far beyond a single building. The investigation tracked down listed addresses for several other high-billing vendors, uncovering a pattern of absurdity:
The Sushi Apartment: One registered address led to a second-floor apartment above a sushi restaurant near the Mississippi River. The door was locked, with no signage or indication of business operations.
The Non-Existent Plaza: At Winsor Plaza in Roseville, reporters searched for suite numbers listed on government invoices. The result? The suite numbers did not physically exist within the building.
The Dentist Decoy: At 9120 Baltimore St N, records indicated a service provider operating out of Suite 100. Upon arrival, reporters found only a dental practice. No other offices—and certainly no social service agencies—were present.
Other locations listed in tax documents turned out to be empty parking lots, abandoned warehouses behind churches, or boarded-up structures covered in graffiti.
The "Brilliant" Scheme
Following massive FBI raids, the Minnesota Department of Human Services (DHS) opened approximately 40 investigations into providers linked to the Griggs Midway hub.
Among the most flagrant offenders identified is Brilliant Minds Services, which ranked among the state’s top recipients of HSS funds last year. Prosecutors allege the company submitted over $2.3 million in false claims.
Four individuals have been charged in connection with the scheme: Moktar Hassan Aden, Mustafa Dayib Ali, Khalid Ahmed Dayib, and Abdifitah Mohamud Mohamed. Mohamed is notably identified as the owner of another shell company, Foundation First Services LLC.
"Ignored Warnings"
The scandal has ignited fury among lawmakers and taxpayers, particularly regarding how such obvious fraud went undetected for so long.
State Senator Mark Koran (R), a vocal critic of the state’s oversight failures, emphasized that the vast majority of the stolen funds never benefited the needy. "Most of hundreds of millions of dollars never bought a single meal," Koran stated.
Perhaps most damning is the revelation that property owners had previously attempted to blow the whistle. According to Koran, landlords contacted the Department of Education to report that the businesses claiming to operate on their properties did not exist. Despite these warnings, the payments continued to flow.
A Political Firestorm
The exposure of the Minnesota fraud network comes at a pivotal time in national politics. The scandal has become a lightning rod for conservative voters, serving as a prime example of the bureaucratic waste and lack of oversight that President Donald Trump and Vice President JD Vance have vowed to dismantle.
For the residents of Minnesota, the empty buildings and fake suite numbers stand as a silent, expensive monument to a system that allowed fraudsters to loot the treasury while the government looked the other way.
Source: Fox News Digital
CaliToday.Net