CNN's Abby Phillip calls notion that 'no one is being held accountable' for Minnesota fraud 'completely false'

CNN anchor Abby Phillip asserted that the idea that "no one is being held accountable" for the widespread fraud being reported in Minnesota is "completely false," and that the abuse was not "just left to run rampant."

During a Monday broadcast of "CNN NewsNight," Phillip clashed with CNN's Scott Jennings over the handling of Minnesota's exploding fraud scandal, with Jennings arguing that not enough had been done to resolve the situation and prevent future abuse.

"This idea that nothing is being done, that no one is being held accountable, that this was just left to run rampant, is completely false," Phillip said.

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Jennings pushed back on this assertion, conceding that while "some people have been held accountable," he's of the same opinion as many Republicans who feel that "not nearly enough" of those involved have been brought to justice.

"And truthfully, until somebody in a position of power - until somebody in a position in Minnesota, elected position, who was in charge of administering this or having some oversight over it - goes to jail, it's honestly never going to stop," he added.

The conservative commentator went on to cite what he called "rampant fraud" taking place in "blue states across the country," pointing to $9 billion of reported fraud in Minnesota and $70 billion in California.

"When is someone in a position of power going to go to jail for the rampant fraud?" he questioned. "You can put all the low-level people in jail you want, but until somebody in charge goes to jail, it won't stop!"

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Phillip countered Jennings' point by mentioning various fraudsters who were pardoned by President Donald Trump, asking Jennings "where is that same energy" when it comes to the president pardoning individuals convicted of fraud.

"I have no defense for anybody who commits fraud. Fraud is bad," he responded. "What I am telling you, though, is in the case of these states and locales, this is public money, taxpayer money."

Jennings added that elected officials are responsible for the taxpayer-funded programs they oversee, referencing Minnesota Gov. Tim Walz's comments from last year bragging that his state would be providing $316 million in direct funding for childcare providers - a sector that has since faced widespread fraud allegations.

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Several Republican lawmakers in Minnesota released a statement on Monday calling for Walz to resign in light of the unfolding fraud scandal that has spiraled during his tenure.

Earlier this month, federal prosecutors revealed that the fraud scandal in Minnesota, primarily found within the state's Somali community, could cost taxpayers as much as $9 billion. 

The Monday call from Republicans for Walz to resign comes shortly after a viral video by journalist Nick Shirley, seen more than 100 million times on X, highlighting suspected fraudulent daycare locations, prompted even more scrutiny on Walz.

"The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action," a Walz spokesperson told Fox News. "He has strengthened oversight - including launching investigations into these specific facilities, one of which was already closed."

The spokesperson added that Walz has "hired an outside firm to audit payments to high-risk programs, shut down the Housing Stabilization Services program entirely, announced a new statewide program integrity director, and supported criminal prosecutions."

Fox News' Andrew Mark Miller contributed to this report.