Newly recovered audio from 2018 shows that then-state Rep. Peggy Flanagan missed a hearing in which whistleblower Scott Stillman warned that the state's Child Care Assistance Program (CCAP) was on track to become "Minnesota's Watergate." Stillman worked for the Minnesota Department of Human Services as a digital forensics supervisor/manager at the state's digital forensics lab until about 2018. During his work, he investigated fraud in CCAP and in 2017 emails to DHS supervisors, described "organized crime" cases involving the theft of hundreds of millions of taxpayer dollars, expressing concerns the money was being sent overseas.
Flanagan served on that committee, but wasn't at this hearing. Less than a decade later we learned that Minnesota's welfare programs, including CCAP, were defrauded to the tune of billions of taxpayer dollars.
— Dustin Grage (@GrageDustin) October 21, 2026🚨 BREAKING: I’ve recovered audio from a 2018 Minnesota House Subcommittee on Childcare Access and Affordability hearing, a committee on which Rep. Peggy Flanagan served.
Peggy Flanagan was ABSENT when whistleblower Scott Stillman warned that Minnesota’s CCAP fraud scandal had… pic.twitter.com/ZiM3aXAA06
"This has the potential to be Minnesota's Watergate," Stillman said in the audio. "And I would ask, I'm not a state employee anymore, I'm a taxpayer. These people stood up for something that was right, to defend our country, to defend our state, to do their job, the job that they were tasked with. And I appeal to you, is there some way you can protect them?"
"Is there anything you can do? I know we have a new administration coming in," he continued, "I'd like to ask the new administration: are you going to protect these people?"
"Can you promise the taxpayers that there's going to be transparency?" Stillman asked. "We've had data and emails that have come to your desks, 12 pages that have been, one paragraph, the rest is redacted. What kind of transparency is that for our government? For the taxpayer?"
"I stand by my allegations. I stand by my claims of $100 million. It could potentially be higher than that," he said. "I stand by my claims that this money is going overseas, into hands that are probably going to be very detrimental to the United States. I went to the FBI, I went to the Department of Justice, I went to the Homeland Security. I've got no reaction from them whatsoever."
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And Flanagan's absence was noted.
— Dustin Grage (@GrageDustin) October 21, 2026“As a matter of fact Mr. Stillman, the lieutenant-elect, Representative Peggy Flanagan sits on this committee... As you can see she is NOT here.”
This is after Whistleblower Scott Stillman is begging for the incoming administration to take fraud seriously.
"As a matter of fact Mr. Stillman, the lieutenant-elect, Representative Peggy Flanagan sits on this committee. As you can see, she is not here," said Rep. Mary Franson. "However, we will be, we can offer to make a copy of the audio for her to listen to so she can get filled in and carry your voice into the next administration and I know she's very passionate about child care assistance and I'm sure she's going to want to protect the integrity of that. And so I am hopeful with this new administration they will take the fraud seriously."
They did not take it seriously.
Franson even said so.
— 🇺🇸Mary🇺🇸 (@RepMaryFranson) October 22, 2026
They knew almost a decade ago. Stillman warned them.
So they knew about it in 2018… and just let it continue? How is this person allowed to run again? Why isn’t she under investigation?
— Nunya (@NunyaBidness74) October 21, 2026
Because she's (D)ifferent.
— Dustin Grage (@GrageDustin) October 21, 2026Peggy Flanagan literally served on the committee where whistleblowers came forward to expose Minnesota’s childcare fraud.
She skipped the hearings, was informed of the fraud allegations, and failed to act as whistleblowers pleaded with her and Tim Walz to address the problem. https://t.co/heAKLJ3poc
And as we learned, Tim Walz actually attacked and punished the whistleblowers.
Peggy Flanagan knew about the fraud, even though she skipped the hearings. She got this information, she heard what Stillman said, and she did nothing.
Editor’s Note: Help us continue to report the truth about corrupt politicians.
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