JUST IN: Minnesota fraudster names Ilhan Omar in SHOCKING claim

Now to the Trump administration's war on fraud, which could also come up in today's press briefing with the vice president and fraud czar, J .D.Vance.The convicted mastermind behind Minnesota's Feeding Our Future $250 million fraud scheme is set to be sentenced this week.The Justice Department wants Amy Bach to spend 50 years behind bars, saying this, that she, quote, took advantage of a once -in -a -century global pandemic.Hello, everyone.

This is Outnumbered.I'm Emily Campagno, here with my co -host, Kayleigh McEnany, and also joining us today, Sheryl Cassoni, Fox Business anchor and host of American Dream Home, Kennedy, the host of the Kennedy Saves the World podcast, and John Yoo, former law clerk for Supreme Court Justice Clarence Thomas, former deputy assistant attorney general, and UC Berkeley law professor.Now the mastermind's defense team says that she should get credit for handing over documents that helped convict her co -conspirators.They're hoping for about three years in jail.Before she was convicted, Amy Bach told Fox News that state officials, like Governor Tim Walz and Attorney General Keith Ellison, probably knew what was going on the whole time.

I have to believe that the governor's office and Keith Ellison's office were aware of this.They've said they were involved in helping the FBI.They've said they were made aware.But apparently, I'm scary, so they couldn't do anything.I don't know.I have to believe they were aware.

And again, if they weren't, shame on them for having a system that their lower -level staff don't bring something of this level to their attention.

Now, Bach has also implicated Minnesota Congresswoman Ilhan Omar, whose name appeared in emails and texts during her trial.Bach tells the New York Post that she, quote,struggles to believe that Omar didn't know what was happening in her district.She told Fox something similar.

I don't know what she knew.I don't know.I don't know.Um, I know that I was duped by a number of people.We also have seen videos of safari restaurant giving out thousands of meals, pallets and pallets of food being distributed.Was there fraud?

According to the DOJ and the FBI, yes.According to the jury verdict, yes.But how much?And why don't we know that?There's just so many holes and gaps in these cases.Ilhan Omar visited those sites.

Why didn't the FBI?

John Yoo, I feel like rarely do we get so many statements coming out of a defendant's mouth, right?And this is really interesting that she's essentially saying she's a part of the prosecution's case against the whole institution writ large, which is new or should have known.But here it seems like there's a lot of known.What is your take on both sides of this issue here that she faces in court?

For sure she's trying to get a lower sentence.So she's trying to cooperate with the government.And the prosecutor should be taking advantage of this to see if this is a broader conspiracy.It seems hard to believe that a quarter of a billion dollars were stolen by the federal government and no one else knew about it in Minneapolis.That's one.Second, as I learned on Kayleigh's show last weekend, some of this money has possibly ended up in the hands of terrorist groups in Somalia.

If that's true, this is not just Medicare, Medicaid fraud.This is a counterterrorism investigation with much higher sentences and much longer, much more money involved, much greater powers on the part of the government to investigate and surveil.But the last and I think most important thing is people like the governor of Minnesota and the attorney general who are elected to protect us don't have immunity from this kind of prosecution.So I think the Justice Department should be investigating Governor Walz and the Attorney General to see how many times did they meet with these people?How much money did they receive in campaign donations?Did they lay off this conspiracy to allow it to move forward and benefit politically, which would make them potentially co -conspirators in a counterterrorism investigation?

And they need to be held accountable, I think, not just them saying, oh, we eventually cooperated with the federal government when we investigated this.Were they involved in it from the beginning?

Such great questions because the money flow Kayleigh indeed it went even to Somaliland I mean that the the ability for the government thus far to trace the funds has been robust and substantial and Totally illustrates potential culpability we've been talking about or I've been I've been saying that I was hoping for some type of criminal liability Here because this exceeds the standard of negligence so greatly and there is zero Immunity that they can enjoy in their offices because none of this was within the bounds of official duty capacities.This is all fraud fraud and misconduct and breach of duties.There is nothing about this that has to do with policy.

Yes, and it's bigger than feeding our futures.In fact, it goes back to 2019.That's before feeding our futures with a whistleblower report.An investigator, that investigator, sounded the alarm.It was his job to investigate things like this.His entire unit sounded the alarm, saying it's a near certainty that at least a percentage of the fraud proceeds in Minnesota go overseas and are being siphoned off to one or more designated terrorist organizations.

So to the point that Professor Yousmaking If I'm Tim Walz and an investigator in my government who, by the way, his unit ended up being shut down, why?I would listen to that.I would pull him into my office.I would find out about that money and ask, why and how is this going overseas to terrorists?I agree with Professor Yu, and he presented this theory to me for the first time.If you're aiding and abetting terrorists, this could be terrorism charges.

This is a big deal.But state actors is where I'm looking at for progress.at this point.These fraudsters, it's like playing whack -a -mole.You hit one fraudster, another one pops up.You hit one, another pops up.

You need to look at what state actors knew.And that's something immediately when I presented John Yoo's legal theory to the vice president, he said, I'm going to go to DOJ.I'm going to take that there.They should be looking at this.Of course, the facts match the law.That's DOJ's call, not the executive branch's call.

Nevertheless, we need to look at it.And finally, I would just say this.Gavin Newsom, too.I mean, going back to 2022, he was warned about hospice fraud.What did he do?He put a moratorium on hospice.

He shut down 287 hospices.That was over four years.J .D.Vance has shut down 800 hospices in two months.So what was Newsom doing?

Why were they sitting on this information?Why were governors enabling fraud?And I would just note Newsom hit back at J .D.Vance this weekend, saying J .D.'s lying in the fight against fraud.

We've walked the walk.You've walked the walk.Then why did you do a fourth of the work?that the Trump administration has done over a four -year period.They have done in 60 days.You're not walking the walk.

You're playing catch -up.And there have been zero complaints or resistance from those 800 organizations shut down because, indeed, they were fraudulent.Now, you talked about Gavin Newsom's always -over -chatty response, but Governor Walz hasn't responded to JD Vance.Now, the vice president said he hasn't heard from him at all about the fraud probe.And remember, though, the governor took credit somehow for the fraud probe and the results that were uncovered.

Let's watch.No, Tim Walz has not contacted me. I did see that he took credit when we did those 22 subpoenas that I mentioned, the investigations that we're doing for the anti -fraud stuff in Minneapolis.Tim Walz did take credit for it, even though Tim Walz has not helped us at all.We've gotten some cooperation from local authorities, but from the governor's office, we really haven't gotten that cooperation.

So he takes credit, by the way, after he calls the journalist, however, a white supremacist.

Your thoughts?Yeah, so Tim Walz and Gavin Newsom both personally attacked Nick Scherer.and doxed him and tried to do whatever they could to get their unhinged supporters to go after him, you know, putting his safety at risk.But what I'm most curious about, I mean, I can't stand slimy politicians.And I put governors Walz and Newsom in that category because it's only when it has to do with self -preservation and further ascending the political ladder do they actually jump into action.Like, they're not public servants.

They're personally serving their own needs and ambitions.And, you know, Tim Walz, and we've heard this from whistleblowers, he and his office were shutting down anyone who was bringing the fraud to the attention of the state government.And there were plenty of people who were like, this is not right.I mean, there were those of us covering some of the PPP loans in real time during covid saying, you know, this is ripe for corruption.There are plenty of people out here because these are these are vetted so flimsily that they're going to take advantage of this.And it's very interesting that Congresswoman Ilhan Omar, she was the one who authored and pushed the Meals Act in 2020, which allowed for a way lower threshold of, you know, trying to figure out and codify who was getting the money from the federal government to give out meals to kids and families in need.

So they didn't have to have any verification after her federal legislation.

So it's like, I would also like to know from her, like, when did this become your pet I was on this show in the middle of the pandemic from my home studio when we were all at home when I got the alert that my identity had been stolen for a PPP loan fraud I mean it was absolutely rampant now Cheryl Kennedy talked about in Ilhan Omar and let's talk about that her disclosure forms her financial disclosure forms for a second We're gonna pull up that information so that we can get from you the analysis of her economics.Here's the breakdown of her 2024 financial disclosure it wasan estimate between $6 and $30 million, way down somewhere between $18 ,000 and $95 ,000, when a lot of eyebrows were raised about how much she had.And look.You have to wonder, we're just alleging here, we're just brainstorming, but the nexus between changing her mind about the threshold of the financial disclosure and all of a sudden being a multi -multi -millionaire, I guess you have to get to Congress first before you can get rich.

Yeah, you mean they shouldn't be trading stocks?That's a whole other conversation.But, you know, a couple of things here.One of the things that I love that J .D.Vance said, the Vice President, he said, look, he goes, my family back in the day, we needed these programs.

These programs that are people in need that actually need programs.food through SNAP.They need hospice care.They need funding through Medicaid.They're getting lost in all this.And I think that's heartbreaking.

At the same time, John, you mentioned the $250 million.It's looking like it's in the billions.You need a forensic accountant to go through to try to trace all the money.There are ways to do it.Some of the things that they have found, and this is first from Feeding Our Future, OK, you inflate attendance sheets for meal distribution, fake invoices, fake food purchase receipts, multiple businesses.You talked about that with the vice president.

You shut those down.That's one thing.autism services.There are people that do need autism services, but this is money that's taken right out of Medicaid, fake signatures, therapy never delivered, kickbacks that were being given out to certain families.I mean, the fraud, but that's, you can use technology and you can't, again, use forensic accounting to get to that money.The problem with, and we've been asked this on the Business Network, can we get the money back?

Can the American taxpayer recover a clawback of what has been lost in Minnesota?Likely no, because most of that money, if it wasn't put on, in bags of cash on planes back to Somalia, which there is, of course, reporting on that.Unfortunately, it's been moved over to crypto and property, African property.So that money likely is gone.And I think that's the biggest heartbreak of all of this.You know, going back to the COVID pandemic, the PPP loans, we saw massive

fraud in that.We get through that, now we're hit with Minnesota, and now the next step of this is going to be California.And the California fraud is likely just as large as what we found in Minnesota, financially speaking, anyway.

The second gut punch to me for this is that not only is there not recompense to the taxpayer, as you're saying, but we've already absorbed higher taxes to cover all of those budgets to begin with.So the American taxpayer is essentially being penalized twice.Once when they paid for all the fraud to begin with, and then again when they don't get the money back.Final thoughts, Professor?

Well, I think that this is an example of why we have a huge budget deficit like you're talking about.We had rampant spending because of COVID, as Kennedy's talking about, a lot of fraud built it.But they were throwing money at helicopters, but they never brought the budget deficit back down.And we haven't devoted enough resources to enforcement.And so what this all shows is that, yes, maybe we allowed things to get loose, but we've got to crack down now and get the people who stole money from the taxpayer.I mean, this is what's happening.

This is one city, Minneapolis, a quarter of a billion dollars was stolen.Why don't we have J .D.Voorhees advance his task force, go to California, New York, Illinois, places where—I hate to say it, but I bet the fraud was even larger there than in this one city in Minneapolis.And we're the taxpayers.This is our money.

And now it's ending up in terrorist groups in Somalia.So I think that we should be spending more, I hate to say it, but more money for Justice Department lawyers and FBI agents to get to the bottom of this.

One quick point, we do have a ballpark estimate of how big this could be because one program, Medi -Cal, in California over a several year period, three to four years, they estimate it could have lost $146 billion.One program, one state.This could be a trillion dollar fraud epidemic.

Trillion.Be sure to like and subscribe for all the Fox News latest on YouTube and catch full shows streaming now on Fox One.