WASHINGTON – A Republican-led House panel completed its probe into allegations of fraud in Minnesota’s social service programs and urged Vice President JD Vance to dive deeper into a matter it said was ignored by Gov. Tim Walz for political reasons.
The House Oversight and Government Affairs Committee, led by Rep. James Comer, R-Ky., has been investigating allegations that Walz and Attorney General Keith Ellison ignored rampant fraud in the state’s social service programs, which are funded wholly or in part by federal dollars.
The 205-page document alleged that little was done to stop fraudulent activity – including false vendors and kickbacks.
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The report released Monday, titled “The Cost of Doing Nothing: How Tim Walz and Keith Ellison Fueled Minnesota’s Fraud Explosion,” appears…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.