The 2018 FOX 9 Investigation and Hearing
In 2018, a FOX 9 investigative report highlighted a dramatic increase in cash declarations—totaling around $100 million—being flown out of Minneapolis-St. Paul International Airport (MSP) to regions in the Middle East and Africa, including areas with known terror networks. Subsequent stories and official reviews largely discredited the initial claims of direct terror funding. However, with recent federal reports alleging that Minnesota taxpayers may have become one of Al-Shabaab’s primary financial supporters through welfare fraud, investigators flying into Minnesota should revisit these allegations.
During a Minnesota Senate hearing that year, a whistleblower from the Minnesota Department of Human Services (DHS) demanded a federal investigation into whether $100 million in taxpayer funds—intended for childcare and other services—had been diverted to foreign terror networks.
Whistleblower Testimony: Scott Stillman’s Warnings
On May 15, 2018 Scott Stillman, a former DHS fraud investigator, testified before the Minnesota Senate Health and Human Services Reform Policy and Finance Committee. The hearing examined the FOX 9 story and broader fraud concerns. Stillman described “rampant fraud” across multiple programs, including the Child Care Assistance Program (CCAP).
In his role analyzing digital evidence—such as computers, cloud storage, and cell phones—Stillman uncovered wire transfers to multiple bank accounts, detailed plans and instructions, funds routed to foreign countries, and photos of prominent individuals. These findings raised “grave concerns” for national security. He recounted tracking “individuals overseas using their phones to communicate with compounds in the desert while operating DHS daycare businesses for months,” a discovery he said that kept him and fellow law enforcement officials awake at night.
Stillman also detailed suspicious financial trails leading to terror groups via banks and informal hawala networks in Somalia and beyond. He framed the fraud-protection lapses as a “national security issue,” warning of potential risks to lives and calling for immediate federal scrutiny. He shared haunting reflections: after viewing foreign terror attacks on the news, he and his colleagues would wonder, “How much of Minnesota taxpayer dollars were being used to fund that war, that attack?”
Source: Minnesota Senate Video Archives: https://www.lrl.mn.gov/av/senate/2018/cmte_finhhsreform_051518.mp4
Response from DHS Leadership and media: Discrediting and Retaliation
Instead of collaborating with the fraud investigators, then-DHS Inspector General Carolyn Ham sought to undermine them. During legislative questioning, Ham hesitated when asked if she trusted her own team, responding that she trusted “investigations” rather than the investigators themselves. She subsequently spent $90,000 on an external consulting firm (PFM Group) to scrutinize Stillman and his colleagues.
A 2019 report by Minnesota’s nonpartisan Office of the Legislative Auditor (OLA) criticized the handling of Stillman and other whistleblowers. It noted that Ham “did not meet with them,” instead consulting other OIG units, fostering “a sense of alienation or distrust” within the office—a stark contrast to her predecessor. The OLA report confirmed pervasive fraud in CCAP but could not quantify the full scope or verify terror links, as such evidence fell outside its mandated review. However, it referenced Minnesota arrests for Al-Shabaab and ISIS support, as well as a Financial Action Task Force report on “emerging terrorist financing risks” via alternative remittance methods in conflict zones like Somalia.
Ham was placed on paid leave in March 2019 amid complaints, reassigned later that year, and cleared of wrongdoing in a DHS internal probe by December 2019—with no discipline imposed. Critics, including Republican lawmakers, decried the outcome as a lack of accountability.
Contemporary news coverage often portrayed Stillman and fellow whistleblowers skeptically, highlighting past inconsistencies in his statements and questioning the fraud-terror connection. The OLA’s 2019 evaluation found no conclusive evidence tying the $100 million in cash outflows to terrorism.
Relevance Today: Vindication Amid Renewed Scrutiny
These 2018 allegations echo in 2025 reports from the Center for the American Experiment’s Bill Glahn, whose intrepid work cites federal sources claiming Minnesota welfare fraud—exceeding $1 billion under Gov. Tim Walz.
Over 400 DHS employees recently accused Walz of ignoring early fraud alerts and punishing whistleblowers through threats and reassignments—mirroring Stillman’s experience. As one source put it: “The largest funder of Al-Shabaab is the Minnesota taxpayer.” These developments suggest Stillman’s long-ignored warnings may have been prescient, underscoring the need for robust federal intervention.
