Minnesota Gets New Fraud Czar Amid Somali Welfare Scandal

Minnesota Gov. Tim Walz on Friday named Tim O’Malley the state’s director of program integrity, tapping the judge and former superintendent of the Bureau of Criminal Apprehension to root out fraud in government.

O’Malley, who also worked as an FBI agent and spearheaded reforms in the Archdiocese of St. Paul and Minneapolis, will be involved across agencies to oversee that taxpayer funds are not misappropriated.

Walz also announced a partnership with WayPoint Inc., a Minnesota firm made up of former law enforcement and federal agents focused on forensic accounting and investigations.  They will develop a comprehensive fraud-prevention strategy for the state.

Walz said he was proud O’Malley would be working to protect Minnesota taxpayers from fraud in government programs.

“Today we are building on the work of the last several years and strengthening Minnesota’s defenses against fraud,” Walz said.

“If you commit fraud in Minnesota, you will be caught and prosecuted to the fullest extent of the law.”

As Kimberley Hayek reports for The Epoch Times, O’Malley said he has not been appointed to serve the governor or any individual or political party.

“I’m here to serve the people of Minnesota,” O’Malley said.

“No one has any tolerance for fraud. This issue must be addressed aggressively. Minnesotans must have trust in our public institutions.”

WayPoint will spearhead the creation of uniform investigative protocols, a cross-agency fraud prevention strategy, legal data-sharing mechanisms to detect multi-program abusers, and methods for auditing and probing misconduct.

“Fraud is not just a financial loss. It disrupts lives, harms families and undermines confidence in the programs Minnesotans rely on,” Bureau of Criminal Apprehension Superintendent Drew Evans said.

“Our Financial Crimes and Fraud Section is focused on working with local, state and federal partners on criminal investigations that hold offenders accountable and we’re working with the Office of Inspector General Coordinating Counsel to develop stronger barriers and stop fraud before it occurs.”

Shireen Gandhi, Minnesota Department of Human Services Temporary Commissioner, said the Minnesota Department of Human Services has no room for fraud.

“We are intently focused on solutions – strengthening program integrity, tightening oversight of services, and hardening our programs against attacks by criminals,” Gandhi said.

“Our job is to protect Minnesotans who need services. Their lives shouldn’t be a political football and we need to maximize every dollar that goes toward programs to help them.”

O’Malley, who is currently serving as interim chief judge at the Court of Administrative Hearings, led child protection and clergy accountability efforts in the archdiocese beginning in 2014. He will start serving in his new capacity next month.

The appointment comes amid federal scrutiny of organized welfare fraud in the state, with authorities investigating schemes involving networks from Minnesota’s Somali-American community that allegedly stole vast sums of money.

The Treasury Department is investigating allegations that stolen funds were sent to Somali terrorist groups. At the same time, the House Oversight Committee is examining whistleblower allegations of ignored fraud activity and an alleged cover-up.

Meanwhile, U.S. Immigration and Customs Enforcement (ICE) has been ramping up activities in the Minneapolis-Saint Paul Twin Cities region.