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Refugee Timeout Policy: Massive Daycare Fraud in the Minneapolis Somali Community With $100 Million in ‘Laundered’ Taxpayer Dollars to Overseas Islamic Terrorist Organizations

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A Fox 9 report that highlights massive daycare fraud at spots in the Somali community in Minneapolis — fraud that led to a transfer of $100 million in taxpayer dollars that were then laundered and sent to Islamic terror groups overseas — confirms what one Republican congressional candidate warned about ties to terrorism among refugees being resettled.

Jim Hagedorn, way back in 2015, called for extreme vetting of refugees.

And this is why — the case of the daycare fraud is a case-in-point.

From a press release from Hagedorn’s office:

The Fox 9 report highlighting massive daycare fraud in the Minneapolis Somali community, and subsequent transfer of up to $100 million in “laundered” taxpayer dollars to fund overseas Islamic terrorist organizations, confirms the need for continued extreme vetting and a refugee resettlement timeout, according to Jim Hagedorn, the Republican Party’s endorsed candidate for Congress in Minnesota’s First Congressional District.

“In September of 2015, months before then-candidate Donald Trump addressed the issue of Islamic terrorism, I called for the imposition of extreme vetting and a refugee resettlement timeout. My proposal was based upon terrorist-recruitment, assimilation and welfare problems – in Minnesota and across the United States – associated with refugees from nations that harbor anti-American attitudes and promote Islamic supremacist ideology,” said Hagedorn.

The Fox 9 investigation determined that one Somali daycare operator billed the state over $1 million for providing fraudulent services, and that 10 other daycare operators are under investigation, with dozens more considered suspicious. The investigation showed that most are owned by Somali immigrants.

“On this issue alone, there is a clear difference between me and GOP competitor Carla Nelson, and my Democrat opponent, Dan Feehan,” said Hagedorn. “At a time when fraud and abuse by Somali daycare operators is rampant, Senator Nelson co-authored legislation to direct $18 million in state grants for “Somali Community Development” and create a new welfare funding stream for Somali immigrants, with virtually no oversight. Meanwhile, Democrat Dan Feehan says extreme vetting and a refugee program timeout is a ‘Muslim travel ban’ that would ‘make America less safe,’” he said.

“The liberal welfare and open borders policies of my opponents expose both as wrong and naïve concerning the threat posed to the American people by Islamic supremacists,” Hagedorn said.

The Fox 9 report highlighted an ongoing five-year investigation and concluded that Minneapolis and Seattle are experiencing similar activity, with fraudulent daycare schemes spreading to other areas.

“I’ll continue to strongly advocate for extreme vetting and a refugee resettlement timeout to protect the United States and the American people from those whose ideology conflicts with the U.S. Constitution and our American way of life. Additionally, as a Member of Congress, I will use my government reform expertise to overhaul federal agencies and eliminate waste, fraud and abuse, including fraud associated with daycare programs,” said Hagedorn.

And this was the Fox 9 report:

For five months, Fox 9 has been investigating what appears to be rampant fraud in a massive state program.

This fraud is suspected of costing Minnesota taxpayers as much as $100 million a year.

The Fox 9 Investigators reporting is based on public records and nearly a dozen government sources who have direct knowledge of what is happening.

These sources have a deep fear, and there is evidence to support their concerns, that some of that public money is ending up in the hands of terrorists.

This story begins at Minneapolis-St. Paul International Airport, where mysterious suitcases filled with cash have become a common carry-on.

On the morning of March 15, Fox 9 chased a tip about a man who was leaving the country. Sources said he took a carry-on bag through security that was packed with $1 million in cash. Travelers can do that, as long as they fill out the proper government forms.

Fox 9 learned that these cloak-and-dagger scenarios now happen almost weekly at MSP. The money is usually headed to the Middle East, Dubai and points beyond. Sources said last year alone, more than $100 million in cash left MSP in carry-on luggage.

The national, go-to expert on what is behind these mysterious money transfers is Glen Kerns.

“What we were interested in is where it was going,” Kerns said.

He is a former Seattle police detective who spent 15 years on the FBI’s joint terrorism task force, until his retirement.

“It’s an outright crime, it’s unbelievable,” he said.

Kerns tracked millions of dollars in cash that was leaving on flights from Seattle.

It was coming from Hawalas, businesses used to courier money to countries that have no official banking system.

Some immigrant communities rely on Hawalas to send funds to help impoverished relatives back home.

Kerns discovered some of the money was being funneled to a Hawala in the region of Somalia that is controlled by the al Shabaab terrorist group.

“I talked to a couple of sources who had lived in that region and I said, ‘If money is going to this Hawala do you think it is going to al Shabaab?'” said Kerns. “And he said, ‘Oh definitely, that area is controlled by al Shabaab, and they control the Hawala there.’”

He said when the money arrives, whether it was intended for legitimate purposes or not, al Shabaab or other groups demand a cut.

As Kerns dug deeper, he found that some of the individuals who were sending out tens of thousands of dollars’ worth of remittance payments happened to be on government assistance in this country.

How could they possibly come up with such big bucks to transfer back home?

“We had sources that told us, ‘It’s welfare fraud, it’s all about the daycare,’” said Kerns. …

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