The Fraud Surcharge

Why every DFL Official, Somali Community Leader, and Nonprofit Worker needs to call for Ward 6 Council Member Jamal Osman to Resign

CM Osman currently serves on the Minneapolis City Council budget committee. Consider this: a budget committee member who, in the DFL’s fantasy world, is expected to have been unaware that his wife’s nonprofit was stealing almost $500,000 in taxpayer money, is entrusted with overseeing fiscal responsibility. Not only did he win his election while this fraud was being committed, but he also secured the coveted endorsement of Minnesota Attorney General Keith Ellison.

This same DFL party member—who shut down the Osman family slush fund on Friday without demanding an audit, requesting restitution, or recommending charges—has instead facilitated a settlement allowing the family nonprofit to transfer their holdings to other nonprofit organizations. AG Ellison himself described the nonprofit’s activities as “an egregious plot to steal public funds meant to care for children.”

This situation sends a troubling message: the DFL tolerates theft and fraud when it is committed by someone on their team. Such actions erode public trust in the DFL, the Somali community, and the broader nonprofit sector.

The Shoe Bomber

This analogy came to mind during the November 12 budget committee meeting. Several nonprofit representatives pleaded with the council for additional funds to support housing, the construction of a Latino civic center, and senior care—worthy causes likely managed by honest people dedicated to helping their fellow residents. These are efforts fueled by passion. Many people in our city struggle and benefit from city programs and nonprofit assistance. Yet, due to the actions of the Osman family and others, nonprofits now face scrutiny through no fault of their own, much like airport passengers.

How can donors trust a nonprofit when legitimate organizations remain silent about the fraud and abuse perpetrated by illegitimate ones? How can we, as residents, trust a council and a DFL party that fails to take a stand against such blatant exploitation of our best intentions? In fact, they continue to show support for those involved in these frauds.

The amount of fraud occurring in our state and city is, as AG Ellison stated, “egregious.” It acts as a surcharge on residents. Not a single person during the hearing suggested the city reduce its budget. Better Minneapolis advocates for a 3% budget cut across all departments to lower taxes and right-size the city’s spending with its revenues. The prevailing attitude seems to be that the city is an endless stream of taxpayer dollars. Millions of those tax dollars have been, and continue to be, funneled into questionable nonprofits. This system siphons resources from legitimate, hardworking, and honest nonprofits that provide food, housing, and other assistance to Minneapolis residents.

The city has faced lawsuits over its misdirection of funds, which we have previously covered in this newsletter. Our taxes are higher due to the lax oversight by city officials, and trust in our nonprofits, the Somali community, and the DFL has been eroded.

Several actions can help reverse this trend:

1. The Somali community could advocate for CM Osman to resign.
2. The DFL can call for audits of the Osman family, demand restitution of the stolen funds, and push for his immediate resignation.
3. The nonprofit sector must adhere to standard accounting practices, ensure transparency, and demonstrate the tangible impact of their work.

Inaction by the DFL and Nonprofits Will Likely Hurt Them

One reason public esteem for politicians is so low is their ability to disguise self-serving actions behind language that obscures their true intentions, allowing them to pursue personal agendas and repay favors—or, in this case, to exact retribution. While the bill ostensibly aims to “terminate the tax-exempt status of terrorist-supporting organizations,” how it would be applied in practice is uncertain. Many believe it will start with stripping the nonprofit status of any group that supports Hamas or advocates for the Palestinian people. The criteria for determining which nonprofits are considered to support terrorist organizations could be broadly interpreted. For instance, if a faith-based or environmental group participates in a protest against Israel, they could be at risk under this law. The same applies to nonprofits aiding the homeless or indigenous peoples—if they express solidarity with Hamas or the Palestinian cause, they could become targets.

Now is the time for the DFL and the Somali community to call for Council Member Jamal Osman’s resignation. Nonprofits with proven records of accomplishment, clear and tangible goals, and sound accounting practices must also demand his resignation. The mayor and other city council members could insist he resign. To regain the trust of residents and demonstrate a commitment to oversight and accountability, the community needs to see action. Leaders and community organizations must show they are serious about overseeing spending and will not tolerate fraud and abuse.

The Politics of Polarization

Before the presidential election, we published the article, “Election Prediction: Polarization Wins in a Landslide.” The feedback we received was surprising. Many responses included sentiments such as: “It doesn’t matter who is president,” “Regardless of who wins, my life won’t change,” and “There’s no difference between the parties.” This reaction was unexpected; we anticipated hearing partisan attacks, not such widespread nihilism.

Minnesota, whose governor openly opposed Trump, is likely to become a target for Trump and his allies when they seek retribution. This fact should motivate the DFL to protect itself from accusations of fraud and mismanagement.

If the DFL wants to distinguish itself from Republicans and safeguard its reputation, standing up to corruption is a critical way to demonstrate its integrity. Trump has proven adept at committing fraud. Once he and his team regain power, we expect fraudulent activity on an epic scale. Those experienced in committing wrongdoing often have keen insight into others doing the same.

To maintain credibility, the DFL must show it is willing to call out fraud and abuse, regardless the perpetrators party affiliation, race, sex, or religion. Prove wrong those who believe there is no difference between the parties by taking action that the other side won’t: holding your own accountable. A first step would be to push for Council Member Jamal Osman’s resignation.