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State auditor: 'could not substantiate' allegation of child care funds going to terrorists

Audit followed Fox 9 report; says fraud is present, but overblown in report

March 13, 2019 - 11:58 am
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A report from the state Legislative Auditor Wednesday finds that fraud at child care centers across Minnesota exists, but reports are overblown. The audit also said it "could not substantiate the allegation" that state money is used to fund terrorists.

The audit started after a Fox 9 report of allegations from former state employee, Scott Stillman, who said as much as $100 million from the state's Child Care Assistance Program is diverted to Somalia and possibly to terrorist networks. He described suitcases full of money leaving MSP Airport.

The audit did say that the fraud is likely higher than the $6 million found by prosecutors, but couldn't offer a concrete number.

Department of Human Services Commissioner Tony Lourey said in a statement Wednesday: "Fraud is unacceptable. While the Office of Legislative Auditor’s review found no credible evidence to support allegations of fraud in excess of $100 million annually, or that CCAP funds are going overseas to support terrorist activities, any misuse of taxpayer dollars will not be tolerated. We recognize we have a great deal of work to do to better prevent, detect, and investigate fraud."