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Nearly 100 Minnesota Mayors Demand Answers as Fraud Probe Leaves Residents 'Scared'

Nearly 100 Minnesota Mayors Demand Answers as Fraud Probe Leaves Residents 'Scared'
Crosslake, Minnesota, Mayor Jackson Purfeerst, left, and South St. Paul, Minnesota, Mayor Jimmy Francis, right.

Two mayors among nearly 100 who signed a joint letter say a state fraud investigation has left many Minnesotans "scared" and unsure about their benefits. Mayors are directing constituents to county officials while demanding clearer answers from state leaders. The probe, traced to at least 2020 and involving fraudulent billing across social services, has prompted contested estimates of potential losses and ongoing federal and state scrutiny.

Two of nearly 100 Minnesota mayors who signed a joint letter demanding answers about the state's widening fraud investigation say the fallout has created a climate of anxiety and uncertainty for many residents.

"My community is reaching out to me because they're not getting answers from DHS, from other legislators, and they're scared. There's so much unknown… and, as a mayor, we are the front line. We try to help them," South St. Paul Mayor Jimmy Francis told Fox & Friends on Wednesday.

So far, mayors report their assistance has largely involved directing worried constituents to county officials in search of concrete information and resources. "Those that are receiving those benefits are really scared and frightened of what's next because they don't know," Francis added.

Officials say the scandal dates back to at least 2020 and centers on fraudulent billing across a broad range of state social services. Authorities note the scheme disproportionately involves, but is not limited to, Minnesota's Somali community. Federal prosecutors and other investigators have suggested the potential losses could be large, while state officials have disputed some publicly cited estimates.

Nearly 100 Minnesota Mayors Demand Answers as Fraud Probe Leaves Residents 'Scared' - Image 1
Minnesota Gov. Tim Walz sits for an interview with Star Tribune journalists in his office at the State Capitol in St. Paul on Dec. 12, 2024.

Crosslake Mayor Jackson Purfeerst led a letter signed by nearly 100 mayors and sent to Governor Tim Walz and other state leaders expressing sharply worded concerns: "Fraud, unchecked spending and inconsistent fiscal management in St. Paul have trickled down to our cities. … Our state owes it to our citizens to practice responsible fiscal management and to stop taxing our families, seniors and businesses out of Minnesota." Purfeerst said the list of signatories is still growing.

Purfeerst also cited a widely circulated estimate: "If we do the quick math, $9 billion in fraud divided by 5.79 million Minnesotans comes out to roughly $1,500 a person that each hardworking Minnesotan has had stolen from them." The figure has been debated publicly by officials and investigators.

"This is on my watch. I am accountable for this. And more importantly, I am the one that will fix it," Governor Walz said, acknowledging responsibility while also questioning whether some published estimates have been politically amplified.

In a statement published in the Minnesota Star Tribune, a spokesperson for the governor described the public discourse around the probe as politically motivated, calling the investigation "clearly a coordinated political attack to try to silence one of the President’s most effective critics," and asserting the governor takes fraud seriously.

Lawmakers and federal officials have stepped up scrutiny: congressional inquiries and state investigations are ongoing as mayors press for clearer explanations and immediate steps to protect residents’ benefits. The situation continues to develop as residents seek answers about benefit security and fiscal oversight.

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Nearly 100 Minnesota Mayors Demand Answers as Fraud Probe Leaves Residents 'Scared' - CRBC News