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    Another Blue State Faces Fraud Investigation as Somali Migrant Fraud Revelations Continue to Stun the Country

    By Adam StantonJanuary 4, 2026Updated:January 4, 2026
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    Twelve New York Republican state senators urged Gov. Kathy Hochul in a letter to hire an independent firm to conduct a comprehensive audit of state programs, citing widespread fraud allegations in Minnesota, including sham daycares, and a recent $68 million Medicaid fraud case in Brooklyn.

    For context, the courageous Republicans emphasized protecting billions in taxpayer funds as the state faces strained resources and upcoming universal pre-K proposals. As part of this investigation, the SBA suspended 6,900 Minnesota borrowers over suspected pandemic loan fraud and halted $5.5 million in annual support. Hochul’s office dismissed the call as a “political stunt” by Sen. Robert Ortt.

    In any case, the brave letter began, “We write to you concerning disturbing reports of widespread fraud involving taxpayer dollars in the state of Minnesota, including schemes that reportedly involved sham daycare centers and other illegitimate entities.”

    Continuing the emphatic message, the  12 Republican state senators declared that the “revelations” in Minnesota “raise serious concerns about the vulnerability of publicly funded programs to abuse.” Advocating a solution, the letter added, “immediately retain an independent private professional services firm to conduct a comprehensive audit of comparable programs in New York State.”

    Adding more context, the state senators explained that they want “to ensure that public funds are being distributed solely to legitimate organizations and eligible individuals and to identify and address any instances of fraud, waste, or abuse.”

    “Given that New York administers comparable programs involving billions of taxpayer dollars, it is imperative that proactive measures be taken to ensure similar abuses are not occurring here,” the lawmakers wrote to contextualize their comments.

    Concluding the strongly worded letter said, “At a time when resources are strained, it is essential that available funds are protected and directed exclusively to those who truly need assistance…ensuring these programs are efficient, transparent and free from fraud should be a shared priority for all New Yorkers.”

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    Watch CNN try to cover for the Somali fraudsters in Minnesota here:

    During the reaction to the initial scandal, SBA Administrator Kelly Loeffler issued her own letter to Gov. Tim Walz. “I am notifying you that effective immediately and until further notice, the SBA is halting the disbursement of federal funds to SBA resource partners operating in the state of Minnesota, totaling over $5.5 million in annual support,” she noted.

    Adding more fuel to the fire, Loeffler doubled down on her scathing criticism, saying,  “The volume and concentration of potential fraud is staggering, matched in its egregiousness only by your response to those who attempted to stop it.”

    Firing back, Hochul’s office issued a snarky response to the letter. “This is a rich political stunt coming from the lawmaker who spent months fighting the Governor’s efforts to route out waste, fraud and abuse in the state’s Medicaid program,” the Democrat’s office said.

    Concluding the half-hearted defence, the letter added, “Instead of suggesting we spend taxpayer dollars to do the jobs of the State Comptroller and State Inspector General, the Minority Leader should focus on supporting the many longstanding initiatives that the Governor has advanced to stop fraud and protect taxpayers.”



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