A+E Global Media

Hennepin County, Minnesota, suspended a $2 million relief program meant to aid businesses affected by federal immigration enforcement under Operation Metro Surge, after more than 200 of roughly 300 applications were flagged for potential fraud. NextStage, the nonprofit that reviewed applications for the county, found submissions apparently fabricated using artificial intelligence and duplicate applications filed under multiple business names.

The county had distributed about $500,000 to 82 approved applicants before halting processing. Officials, including Commissioner Jeffrey Lunde, said no funds were lost to fraudsters since the scheme was caught before payouts were made. Roughly $1 million in unused funds remains earmarked for small businesses, with another $500,000 redirected toward consulting and promotional support. The Hennepin County Sheriff's Office says it was asked in June to investigate potential criminal activity but is still awaiting documentation from the county months later, with no formal investigation yet opened.