By Trendsetter Tribune 
California Governor Gavin Newsom has launched a series of sharp critiques against Department of Homeland Security (DHS) Secretary Kristi Noem, using her track record as Governor of South Dakota to challenge her current federal enforcement priorities.
Through his press office, Newsom has been recirculating high-profile fraud cases that occurred during Noem’s tenure in Pierre (2019–2025). The strategy appears aimed at highlighting a perceived irony: Noem is currently justifying an aggressive immigration crackdown in Minnesota by citing fraud, while her own home state faced massive internal scandals.
The “South Dakota Fraud” File
Newsom’s office highlighted several specific cases to question Noem’s administrative oversight:
- The $71 Million Organics Scheme: Rapid City businessman Kent Duane Anderson was indicted for wire fraud and money laundering. He allegedly sold conventional grain as “organic,” using the massive profits to fund a lifestyle of luxury yachts and multimillion-dollar homes.
- The Child Protection Services Theft: Lonna Carroll, a former state employee, was recently sentenced to 13 years in prison for embezzling approximately $1.8 million from the Division of Child Protection Services—funds intended for some of the state’s most vulnerable children.
- Department of Revenue Forgery: Former state employees Lynne Hunsley and Danielle Degenstein faced charges related to falsifying records and grand theft by deception. Hunsley recently pleaded guilty to forgery and theft.
A Tale of Two Frauds: The Minnesota Context
The friction between Newsom and Noem stems from the DHS Secretary’s recent actions in Minnesota. In December 2025, Noem claimed that over 50% of visas in the state were fraudulent—a figure experts have called “implausible”—and used this as a catalyst for “Operation Metro Surge.”
“Fifty percent of them are fraudulent, which means that wacko Gov. Walz either is an idiot or he did it on purpose,” Noem stated during a televised cabinet meeting with President Donald Trump.
Newsom’s counter-argument is clear: by focusing on “fraud” as a justification for federal interventions (which have included ICE-related shootings and mass raids in Somali communities), Noem is ignoring the significant state-level fraud that occurred under her own watch in South Dakota.
Political Implications
The back-and-forth highlights a deepening rift between “sanctuary state” leaders like Newsom and the Trump administration’s DHS. As California continues to resist federal immigration mandates, Newsom is leveraging these South Dakota cases to paint Noem as a hypocritical administrator.
Comparison of Stated vs. Past Oversight:
| Feature | Noem’s Current DHS Focus | Noem’s South Dakota Record |
| Primary Target | Alleged Visa/Program Fraud in MN | Multi-million dollar internal embezzlement |
| Enforcement | Federal “Invasion” of Twin Cities | Delayed detection of long-term state theft |
| Rhetoric | “Protecting taxpayer money” | “Significant fraud” (per Newsom) |
The White House and DHS have not yet officially responded to Newsom’s “fraud” social media blitz, but the tension suggests that the legal and rhetorical battles over immigration enforcement are only just beginning.