Tim Walz has recently been chosen as the running mate for Democratic presidential nominee Kamala Harris, leading to criticism of the governor for failing to prevent a significant COVID-19 fraud operation that has affected the state government. Federal charges have revealed that around 70 individuals were involved in a large-scale criminal conspiracy that exploited federally-funded nutrition programs to fraudulently obtain over $250 million, making it one of the most significant fraud schemes during the COVID-19 pandemic in the country. The accused individuals allegedly utilized a non-profit organization named Feeding Our Future, based in Minnesota, to evade close scrutiny from the Minnesota Department of Education, which was responsible for overseeing the programs.
After the announcement of Walz as Harris’ running mate, the Minneapolis Star-Tribune published an article highlighting this issue as a major vulnerability for Walz. Criticism from the pro-Trump group MAGA Inc. labeled Walz as an “incompetent liberal” for allowing such a massive fraud scheme to occur under his leadership. Joe Teirab, a pro-Trump Republican and former federal prosecutor running for Congress, emphasized the magnitude of the fraud and questioned the potential national impact of such schemes.
More than 20 individuals have already pleaded guilty or been convicted in connection to the fraud scheme, with many others still awaiting trial. Assistant U.S. Attorney Joseph Thompson described the defendants’ actions as deceitful and fraudulent, emphasizing the severity and audacity of their conduct. In a photo from June 18, 2020, Governor Tim Walz addressed Minnesotans from the Governors Reception room at the State Capitol to talk about his response to COVID-19.
Glen Stubbe/Minneapolis Star Tribune via Getty Images, FILE
However, a state audit released in June suggests that it could have been avoided.
“[T]he failures we highlight in this report are signs of a department that was unprepared to handle the issues it faced with Feeding Our Future,” said the 103-page report, which outlined the results of a limited “special review” conducted by Minnesota’s Office of the Legislative Auditor.
The state agency not only “neglected to act on warning signs known to the department before the COVID-19 outbreak and before the alleged fraud began,” but its “decisions and lack of action opened the door to fraud,” according to the auditor.
The report noted that although officials at the Minnesota Department of Education (MDE) had expressed concerns about the nonprofit at times, they felt restricted in addressing their concerns due to “operational difficulties” during the pandemic, such as limited ability to visit sites in person, and because of a “legal and public relations campaign” from Feeding Our Future that included claims of discrimination.
“While we recognize that these factors posed challenges for the department, we also believe MDE could have taken more definitive action earlier in its dealings with Feeding Our Future,” stated the audit report.
According to the report, after laundering tens of millions of dollars, the scammers allegedly used front companies to purchase luxury vehicles, boats, and jewelry, to travel and settle debts, and to acquire properties in Minnesota and worldwide.
Following the release of the report, Walz admitted his administration can always “improve,” and claimed, “We definitely take accountability” for any mishaps that occurred.
The report, which barely mentions the governor, does not pinpoint any specific blame on Walz or his immediate office. However, Teirab and other detractors argue that Walz is still partly responsible for the extensive fraud.
“He is responsible for what occurs within his administration,” stated Jim Schultz, a Minnesota business advocate and vocal Republican who narrowly lost a race for the state’s next attorney general two years ago.
“There was this extensive fraud under his supervision,” Schultz told ABC News on Tuesday. “To this day, he has never terminated anyone, no one has been reprimanded.”
Walz mentioned that leadership changes have been made within state government, including at MDE, following the occurrence of the fraud.
MORE: Charges announced over alleged $120K bribe attempt during pandemic relief fraud trial
Teirab, who claims he “assisted in investigating and prosecuting the Feed Our Future fraudsters” while he was still a prosecutor at the U.S. The legal firm in Minnesota a few years back penned an article last week, accusing Tim Walz of being negligent and allowing a staggering amount of fraud.
Shortly after five of the culprits were found guilty of federal deceit charges in June, the Department of Justice charged five individuals for attempting to bribe a juror in the middle of deliberations. They allegedly offered $120,000 to the juror in exchange for a verdict of not guilty.
One of the participants in the bribery plot was actually one of the individuals who was cleared of charges during the trial.
The scandal involving Feeding Our Future is not the sole fraudulent scheme that has affected Walz’s leadership.
In June, a different audit revealed that another state agency had failed to properly monitor a program aimed at compensating essential workers impacted by the pandemic. Auditors estimated that over $200 million could have been disbursed to individuals engaged in deceitful activities or who were ineligible for payments.
Walz responded to both audits in June, stating, “There was no wrongdoing. In both instances, no state employee was found to have engaged in any illegal activities. They simply did not conduct sufficient due diligence.”
According to Teirab’s election campaign, numerous Medicaid-related initiatives have also fallen victim to fraud and misuse under Walz’s governance.
A representative for the Harris-Walz campaign declined to provide a statement when contacted by ABC News.
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