Ernst Leads All Small Business Republicans in Uncovering True Extent of Minnesota Fraud

WASHINGTON - After Minnesota fraudsters were exposed for stealing billions from taxpayers because of lax oversight by the Biden administration and Governor Tim Walz, U.S. Senate Committee on Small Business and Entrepreneurship Chair Joni Ernst (R-Iowa) led all Republican members of the committee in getting answers on the true cost to the American people.

In a letter sent to Small Business Administration (SBA) Administrator Kelly Loeffler, the senators asked for a full breakdown of all the tax dollars stolen by criminals in Minnesota and what steps will be taken to ensure this level of fraud never happens again.

"As the Trump administration opens the books, many disturbing fraud schemes are being uncovered. We have heard from our investigative and law enforcement partners loud and clear that it takes years to investigate and audit these unprecedented COVID relief programs properly. That is why the U.S. Senate Committee on Small Business and Entrepreneurship passed S. 1199, the SBA Fraud Enforcement Extension Act, to give hardworking investigators more time to uncover crimes like this and hold fraudsters accountable," wrote the senators.

Click here to view the letter.

Background:

Ernst exposed a Democrat earmark to send $1 million to a Minneapolis "East African" addiction recovery group that had all the hallmarks of previous fraud schemes, including operating above a Somali restaurant, being run by 3 individuals who all claim to live in the same house, and a business model that relied on contractor fees. Due to her work to expose the wasteful spending, it was stripped from the spending bill.

Many of the Minnesota fraudsters who stole from COVID-era programs may end up getting away with it because the statute of limitations will soon lapse. Democrats are blocking Ernst's SBA Fraud Enforcement Extension Act to extend the statute of limitations for five more years to ensure justice is carried out in the Shuttered Venue Operators Grant (SVOG) and Restaurant Revitalization Fund (RRF) programs.

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