Money for families in need or Rolex watches and luxury cars? One expert is sounding the alarm on more “fraud by design” and how Minnesota taxpayers will be on the hook for a shocking amount of money.
Matthew Schmid, the public affairs director of Rural America and Security, Midwest at the America First Policy Institute, joined Liz Collin to discuss his research on fraud involving food stamps, also known as Supplemental Nutrition Assistance Program (SNAP) benefits.
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Along with a New Hope woman who was sentenced in a $325,000 SNAP fraud scheme, Schmid spoke about the case of an Anoka County couple — Mohamed Elshazli and Magda Elsagher — who claimed to have next to nothing and collected more than $800,000 in food stamps and medical benefits.
“They were indicted for food stamp fraud as well as medical benefit fraud. The irony of this is they were indicted for lying on their application. If they told the truth about their actual assets, which were in the amount of millions — they had sent $2.2 million overseas, had spent over $50,000 at a jewelry store, and owned 17 vehicles, when they claimed to only have $200 in a checking account and one vehicle — due to the rules in Minnesota, had they just told the truth, they would not have gotten indicted, at least on the SNAP side because in Minnesota, there are no rules, there’s no asset testing in Minnesota,” Schmid explained.
“It’s really fraud by design per Minnesota SNAP rules,” he said. He also spoke about how a Minnesota millionaire was eligible for SNAP benefits due to the loophole created by the lack of asset testing.
“A bill introduced last year in the state legislature by Rep. Pam Altendorf attempted to close this loophole,” Schmid said. However, the legislation did not pass.
“Isn’t that their choice, if they want to be able to go out and buy a really nice Corvette? Those are really fast and cool…”
A Corvette may be fast, but taxpayer dollars aren't meant to finance the grocery bill for someone who can afford one.
Minnesota had the opportunity this… pic.twitter.com/LAdNiOrJtM
— AFPI State Action (@a1states) July 1, 2026
“One of the things that it did is it implemented an asset test. We’re talking about liquid assets, checking accounts, money on hand. It doesn’t include 401ks, retirement,” Schmid said of the bill. “The asset test was rejected. One of the provisions of this legislation was to restrict SNAP benefits for those who own vehicles worth over $100,000 … So as it stands now, you know, you can still drive a Lamborghini, you can drive a Corvette.”
“One of the issues with this is the impact on public trust when state leaders will not restrict and just have common sense restrictions,” he continued. “People start to question it. We have polling to show, for example, that 78% of people support mandatory income and asset testing for SNAP.”
Error rate in Minnesota to cost taxpayers millions
Starting next year, the federal government will require states with a SNAP payment error rate that exceeds 6% to pay up.
“For Minnesota, because your SNAP payment error rate is what it is, it’s close to 13% … which means next year, Minnesota taxpayers are on the hook for $130 million in new state spending as part of a cost share.”
He also said that states that are not managing their programs well “need to put some skin in the game now” because unlike before, “it’s not just federal taxpayers that are going to be holding the bag.”
“We want to provide for those who need it, but we also want to ensure that the folks that are managing these programs are zealously guarding that public trust,” Schmid concluded. “And when they’re not guarding the public trust, the program itself, any given welfare program, any given public assistance program, is only as good as the folks who manage it. Leadership matters.”
Liz Collin
Liz Collin is a multi-Emmy-Award-winning investigative reporter, news anchor, and producer who cares about Minnesota. She is the producer of The Fall of Minneapolis and Minnesota v We the People documentary films, and author of the Amazon best-selling book, They’re Lying: The Media, the Left, and The Death of George Floyd. Her work has prompted important state laws. Yet perhaps most of all, Liz has been giving a voice to the truth—and helping others tell their stories—for more than 20 years.
Dr. JC Chaix
Dr. JC Chaix is an editor, educator, and an expert in media studies. He wrote and directed the Alpha News documentary "The Fall of Minneapolis" and "Minnesota v We the People."
