Minnesota Legislative Auditor Report: State Officials ‘Fabricated Records’ to Cover Up $250M Fraud Oversight Failures
A scathing report from the Minnesota Office of the Legislative Auditor (OLA) has ignited a political firestorm, accusing the Minnesota Department of Education (MDE) of “fabricating” documentation to conceal its failure to oversee the massive Feeding Our Future fraud scheme. The revelations have prompted calls for immediate accountability following what critics are labeling a “betrayal” of the public trust.
Audit Reveals ‘Fabricated’ Documents and Inadequate Oversight
Legislative Auditor Judy Randall presented findings that contradict the Walz administration’s previous defenses regarding the $250 million pandemic relief fraud. According to the OLA investigation, MDE employees failed to perform required oversight duties—specifically site visits—and subsequently created documentation to cover up these lapses.
“This was definitely the most egregious thing I have seen,” Randall told investigators, noting that MDE staff provided “inaccurate assurances” to the federal government. The audit detailed instances where state regulators claimed to have monitored food distribution sites but produced no contemporaneous records. When pressed, documents later materialized that the auditor determined were created after the fact to hide the lack of supervision.
Key findings from the “Deep Search” of the audit include:
Fabricated Records: The audit alleges that state workers created backdated or false records to make it appear they were monitoring the nonprofit Feeding Our Future, when in reality, little to no oversight was occurring.
Zero Verification: Despite red flags—including a small restaurant claiming to serve 5,000 meals a day—MDE officials frequently failed to conduct a single site visit to verify if food was actually being served to children.
Missed Warning Signs: The report concludes that MDE’s “inadequate oversight created opportunities for fraud,” allowing the scheme to balloon into the largest pandemic fraud case in the United States.
Background: The Feeding Our Future Scandal
The controversy centers on the nonprofit Feeding Our Future, which received hundreds of millions in federal funds to feed low-income children during the COVID-19 pandemic. Federal prosecutors allege that instead of buying food, conspirators siphoned $250 million to purchase luxury cars, real estate, and jewelry. To date, 70 individuals have been charged, and several have pleaded guilty.
While the criminal case focuses on the fraudsters, the legislative audit focuses on the state government’s role as the “gatekeeper” of these funds. The MDE was responsible for approving applications and monitoring compliance, a duty the auditor says was completely neglected in many instances.
Governor Walz and MDE Response: Deflections and Denials
The report directly challenges the narrative put forth by Governor Tim Walz and his administration. Governor Walz had previously stated that his administration “saved the day” by catching the fraud and referring it to the FBI. He also claimed that Ramsey County Judge John Guthmann “ordered” the state to resume payments to the fraudsters in 2021 despite the state’s suspicions.
However, Judge Guthmann issued a rare public rebuttal, stating the Governor’s claim was “false” and that he never ordered the resumption of payments; MDE resumed them voluntarily.
In response to the new audit findings, the Walz administration has faced intense scrutiny:
Walz’s Defense: Governor Walz has acknowledged “opportunities for improvement” but initially insisted there was “no malfeasance” by state employees—a claim now directly challenged by the Auditor’s finding of fabricated records.
MDE Stance: Education Commissioner Willie Jett disputed some of the audit’s characterizations, arguing the department was under immense pressure to distribute aid quickly during a global health crisis and was misled by sophisticated criminals.
Objections and Political Fallout
Critics argue that the administration’s defense creates a false dichotomy between “helping children” and “following the law.” Senate Republicans and taxpayer watchdog groups are demanding immediate consequences, suggesting that “handcuffs, not excuses” are necessary for state officials who falsified public records.
“The audit proves this wasn’t just incompetence; it was a cover-up,” stated one legislative critic. “When you fabricate records to hide that you didn’t do your job, that crosses the line from negligence to active deception.”
As the state legislature reviews the findings, the pressure is mounting on Governor Walz to hold specific agency leaders accountable for what the Legislative Auditor calls a “troubling dysfunction” in state government.
youtube.com
cbsnews.com
leg.state.mn.us
youtube.com
