Sens. Joni Ernst (R-IA) and Mike Lee (R-UT) are asking the Department of Justice (DOJ) to investigate alleged fraud by a Somali-owned rehab center in Minneapolis, Minnesota, as alleged fraud schemes among Somali-owned nonprofits, daycare centers, and medical transportation companies have been referred to federal investigators.
In a letter to Attorney General Pam Bondi, Ernst and Lee accuse the Minneapolis-based rehabilitation center Generation Hope MN, a Somali-owned business, of accepting millions in federal dollars while having a “troubling pattern of red flags around its legitimacy, operational capacity, and financial stewardship.”
“… we are alarmed that this organization was ever positioned to receive over $1 million in congressionally directed Department of Justice (DOJ) funding despite multiple indicators that should have rendered it ineligible for any federal assistance or grants,” the senators wrote:
Generation Hope MN was established in 2019 and describes itself as a Somali-led organization focused on addiction recovery and substance use disorder services in Minneapolis’ East African community. [Emphasis added]
IRS documents, specifically IRS Form 1023-EZ, which is used to apply for recognition as a 501(c)(3) tax-exempt organization, showed the three directors of Generation Hope MN listed the same address for a five-bedroom home in Minneapolis as their primary residence. [Emphasis added]
Generation Hope MN’s website lists two Minneapolis addresses, including a location on Cedar Avenue. This same address is publicly associated with Sagal Restaurant and Coffee, a Somali restaurant. While the Sagal restaurant’s owner claims Generation Hope MN occupies office space above the restaurant, this shared address with a commercial establishment, combined with the absence of dedicated program facilities or visible service infrastructure, raises substantial doubts about the organization’s independent operations and scale—particularly for an entity purporting to deliver intensive therapy and rehabilitation services. [Emphasis added]
Ernst and Lee are asking Bondi to investigate Generation Hope MN, comparing the business’s financial records as similar to those of Feeding Our Future, the nonprofit that was used as a massive fraud scheme to enrich those, mostly Somali immigrants, involved.
“These financial characteristics closely resemble tactics alleged in ongoing federal investigations into Minnesota nonprofit fraud, including the Feeding Our Future case, in which federal prosecutors allege kickbacks were routed through inflated ‘consulting’ or contractor fees to shell entities,” the senators wrote.
“While no identical misconduct is alleged here, Generation Hope MN’s spending profile fits a fraud-risk pattern that has already cost taxpayers billions across Minnesota programs,” they continued.
This week, citizen journalist Nick Shirley, who exposed alleged fraud among Somalis owning fake daycare centers in Minneapolis to secure federal funds, reported that Somali immigrants in the city are also allegedly operating fake medical transportation companies to obtain taxpayer money.
John Binder is a reporter for Breitbart News. Email him at [email protected]. Follow him on Twitter here.
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