Elon Musk Calls Tim Walz a 'Crook' and Demands Prosecution Over £7bn Minnesota Fraud Scandal

Tech billionaire Elon Musk has intensified his attacks on Minnesota Governor Tim Walz, branding him a 'crook' and calling for his prosecution over a sprawling fraud scandal that federal prosecutors say could involve up to £7 billion ($9 billion) in stolen taxpayer funds.

The Tesla and SpaceX CEO shared a post on X calling to prosecute Walz in response to investigative content posted by YouTuber Nick Shirley, whose videos have exposed alleged fraud schemes across Minnesota's welfare and Medicaid programmes.

'Tim Walz is a crook', Musk wrote on Sunday.

A Minnesota Department of Human Services staff account replied: '[Walz] absolutely is hiding fraud AND has retaliated & destroyed the lives of many whistleblowers'.

Federal Prosecutors Call Fraud 'Industrial-Scale'

'The fraud is not small. It isn't isolated. The magnitude cannot be overstated', First Assistant US Attorney Joe Thompson said during a press conference on 18 December. 'What we see in Minnesota is not a handful of bad actors committing crimes. It's a staggering, industrial-scale fraud.'

Federal authorities have uncovered alleged schemes spanning 14 high-risk programmes, including housing assistance, autism therapy, and disability supports. Thompson had earlier suggested that half or more of the £14 billion ($18 billion) billed since 2018 could be fraudulent.

The investigations grew from the £195 million ($250 million) Feeding Our Future scandal. Autism-related Medicaid claims surged from £65 million ($83 million) in 2021 to £267 million ($342 million) in 2024.

House Republicans Join Calls for Accountability

House Oversight Committee (HOC) Chairman James Comer told reporters that the 'walls are caving in' on Walz. 'The key to a good congressional investigation is having whistleblowers. And, fortunately for us, we have some state employees who have bravely stepped forward.'

US House Majority Whip Tom Emmer echoed Musk's criticism on X. 'There's no way the Walz administration didn't know about the billions being stolen in fraud', the Minnesota Republican wrote. 'Whoever knew, even up to the high levels, must be held accountable.'

Daycare Centre Video Sparks Viral Outrage

This week, YouTuber Nick Shirley posted footage showing a Minnesota daycare with 'Learning' misspelled on its sign that allegedly received £3.1 million ($4 million) in state funds.

When investigators approached the 'Quality Learing Center' in Minneapolis, a woman shouted warnings about Immigration and Customs Enforcement. Shirley presented documents showing the centre received £1.5 million ($1.9 million) in fiscal year 2025 alone.

Walz Denies Wrongdoing

Governor Walz, for his part, questioned whether federal prosecutors' claims were politically motivated. 'You should be equally outraged about $1 or whatever that number is, but they're using that number without the proof behind it', Walz had said.

A Walz spokesperson called the investigation 'a coordinated political attack to try to silence one of the President's most effective critics'.

History of Animosity Between Musk and Walz

The clash escalates tensions between Musk and Walz, dating back to the 2024 presidential campaign when Walz served as Kamala Harris's running mate.

During the campaign, Walz called Musk a 'dipshit' and questioned his government contracts. Walz reportedly celebrated when Tesla's stock declined, despite Minnesota's state pension fund holding 1.6 million shares in the company.

The confrontation intensified after Donald Trump appointed Musk to lead the Department of Government Efficiency (DOGE), giving the billionaire a platform to scrutinise government waste and fraud.