State officials in Minnesota continued sending millions of dollars in welfare funding to a Somali nonprofit organization even after its chairman was arrested and charged in a major fraud case, according to reporting from KTSP-TV.
Records reviewed by the outlet show that Ali Elmi, the chairman of a children’s charity called Ka Joog, was arrested and charged in the fall of 2023 for his alleged role in a $9 million fraud scheme involving Minnesota’s Personal Care Assistance program, which is overseen by the state Department of Human Services (DHS). Despite Elmi’s arrest, state officials continued issuing payments to Ka Joog, including approximately $600,000 after charges were filed, without suspending funding or launching a formal review.
Prosecutors allege Elmi helped steal millions from the Personal Care Assistance program, a welfare initiative designed to support vulnerable individuals. However, KTSP reported that no investigation was initiated into Ka Joog itself following his arrest, even though Elmi remained listed as the organization’s chairman.
Republican state Rep. Isaac Schultz criticized the state DHS for continuing to distribute funds, saying the agency failed to coordinate internally after the criminal charges were filed. Schultz said the situation demonstrated a breakdown in communication across state government and a failure to safeguard taxpayer dollars.
Channel 5 News also found that Ka Joog remains listed as an active charity in good standing with the state, despite the ongoing fraud case involving its leadership. No corrective action or compliance review appears to have been taken against the organization, even as questions surrounding its legitimacy persist.
Further reporting revealed that Ka Joog has a history of compliance issues, including failure to submit required financial filings and a lack of transparency. KTSP reported that the group is not properly registered as an official charity with the state because it has not provided necessary financial documentation. Despite these deficiencies, more than $2.7 million in state funding has reportedly flowed to the organization.
“Minnesotans are incredibly frustrated by this,” Schultz said. “It is incredibly concerning, especially when it appears like no one is being held accountable.”
The Ka Joog case appears to be part of a broader issue involving state oversight of nonprofit funding. In a separate investigation, KTSP found that up to $20 million in Minnesota welfare funds have been distributed to multiple organizations that failed to meet state requirements to be officially registered charities. Many of those groups reportedly did not register with the attorney general’s office as required, yet still received millions in funding from state agencies.
The findings raise renewed questions about Minnesota’s vetting and monitoring of nonprofit recipients of taxpayer-funded welfare programs, as well as the accountability mechanisms in place within state government.
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