Expert Says Declining Assimilation and Fear Of Racism Helped Fuel Massive Minnesota Fraud Scheme

An expert interviewed by Fox News Digital says a long-term drop in immigrant assimilation and widespread reluctance to be accused of racism helped enable a sprawling fraud operation in Minnesota that federal prosecutors are now unraveling.

Background

Federal prosecutors describe the case as one of the largest social-services fraud scandals in U.S. history. They allege Somali-led non-profits created "schemes stacked upon schemes" that diverted hundreds of millions of taxpayer dollars from child-nutrition programs and Medicaid-funded housing and therapy services. More than 70 people have been charged and prosecutors have secured dozens of convictions as investigations continue.

Men take part in a weekly Friday Jum’ah prayer session at Abubakar As-Saddique Islamic Center amid a reported ongoing federal immigration operation targeting the Somali community in Minneapolis, Minnesota, U.S. Dec. 5, 2025.

Expert Analysis

Simon Hankinson, a senior research fellow at the Heritage Foundation’s Border Security and Immigration Center, told Fox News Digital that a weakening of assimilation expectations in the U.S. and a fear of being labeled racist slowed detection and enforcement.

"Assimilation is a two-sided coin. The pressure comes from inside, from you wanting to assimilate so you can make it in the new society, but it also comes from outside, where the society says, 'Hey, we expect you to do this.' We don't do that anymore in America. We don't really expect anything of our immigrants,"

Hankinson emphasized that those charged represent a minority within Minnesota's Somali community — estimated at roughly 80,000 people — and said the broader community should not be blamed collectively. He argued, however, that strong clan ties and cultural insularity can reduce internal reporting and limit community-driven oversight.

Somali illegal alien Abdul Dahir Ibrahim, who was convicted of fraud, has been photographed with Rep. Ilhan Omar, D-Minn., (left) and Democratic Minnesota Gov. Tim Walz (right).

Allegations and Oversight Failures

Prosecutors allege that some companies exploited Minnesota's Medicaid autism program: recruiting families, obtaining questionable diagnoses, and billing for therapy that never occurred. Hankinson called the reported spike in autism diagnoses among Somali children alarming and suggested regulators should have noticed dramatic shifts in reported rates earlier.

"Somebody should have noticed at some point that, 'Hang on a minute, why have the autism rates in Somali kids gone from one in a hundred to like one in three or whatever it was?' There should have been some oversight,"

He also cautioned that the threat of being accused of racism can deter investigators and officials from pursuing cases aggressively, adding that some wrongdoers may exploit those fears to avoid scrutiny.

Political Reaction and Next Steps

The scandal has prompted state and federal probes, congressional attention, and public debate. Governor Tim Walz criticized federal actions he said unfairly targeted Somalis, while critics like Hankinson argue leadership at the state level should have acted sooner. Hankinson called for stronger oversight of aid programs and encouraged community leaders to help identify and hold accountable the individuals responsible for the fraud.

Bottom line: Authorities say the fraud was large in scale and sophisticated in execution. Experts point to a mix of program vulnerabilities, cultural dynamics, and political caution as factors that allowed the scheme to grow before it was stopped.