Watchdogs and lawmakers demand Rep. Ron Kresha's resignation as financial records contradict his sworn statements — fueling outrage and ethics concerns over potential lobbying violations.
ST. PAUL, MN, October 30, 2025 /24-7PressRelease/ -- Rep. Ron Kresha, Chair of the Minnesota House Education Finance Committee and senior member of the Commerce Finance Committee, faces mounting pressure to resign following revelations that his company, Golden Shovel Agency, LLC, is the target of a federal lawsuit alleging $965,000 in Paycheck Protection Program (PPP) fraud.
The case — United States ex rel. Troy K. Scheffler v. Golden Shovel Agency, LLC, No. 0:25-cv-02824-KMM-LIB (D. Minn.) — is currently pending in federal court and accuses Golden Shovel Agency of knowingly misrepresenting payroll information to obtain taxpayer-backed pandemic relief. According to filings, Kresha's formal legal response deadline has been set by the court; see PACER for updates.
Conflicts of Interest and Lobbying Concerns
Ethics advocates warn that Kresha's dual roles—as a legislator on key House finance committees (Commerce and Education Finance) and as a senior officer of a firm receiving government-linked funds—raise serious conflict-of-interest questions.
Further scrutiny has focused on whether Golden Shovel Agency or its affiliates have engaged in lobbying activities prohibited for sitting legislators under Minnesota Statute § 3.084, subd. 2, which bars members of the legislature from acting as or employing lobbyists.
Calls are growing for a full ethics and campaign finance investigation into whether Kresha's business activities have overlapped with legislative decision-making or state-funded contracts.
Whistleblower and Citizen Advocacy
The lawsuit originates from a whistleblower complaint filed by Minnesota transparency advocate Troy Scheffler, who has spent years investigating the misuse of taxpayer dollars in state and local government.
Scheffler's evidence brought federal attention to Golden Shovel Agency's loan filings, underscoring broader concerns about integrity and oversight in Minnesota's public institutions.
Scheffler stated that public officials "must be subject to the same financial scrutiny as the people they govern."
Minnesota's Education Decline Adds Urgency
The allegations come amid growing concern over Minnesota's declining education outcomes. Once ranked among the nation's top five states for K–12 performance, Minnesota now sits below the national average in reading and math; fourth-grade reading proficiency dropped from 39% in 2013 to 30% in 2022, falling below the national average, according to National Assessment of Educational Progress (NAEP) data.
Education experts cite legislative gridlock, politicized funding priorities, and a lack of transparency in budget allocations as key contributors to the decline.
Advocates argue that the alleged financial misconduct by the very lawmaker overseeing House Education Finance undermines public confidence in how the state manages taxpayer-funded programs.
Calls for Resignation Grow
Public pressure on Rep. Kresha has surged in recent weeks. Lawmakers from both chambers, along with multiple BPOU (Basic Political Organizing Unit) chairs in District 10A, have demanded that he step down immediately.
Leading those calls is Rep. Elliott Engen, Minnesota's youngest financial watchdog and candidate for State Auditor, who warned that financial integrity in government "cannot be optional."
"A legislator who oversees finance committees cannot be entangled in a federal fraud case involving taxpayer funds," Engen said. "It's time for accountability and transparency from those entrusted with Minnesota's finances."
Rep. Elliot Engen's plea can be viewed here: https://www.facebook.com/watch/?v=1585968475907657
Rep. Drew Roach also emphasized that this is about ethics, not partisanship:
"This is not about politics — it's about honesty, integrity, and the rule of law," Roach said. "We must hold our own accountable if we want Minnesotans to trust us again. Anything less is hypocrisy."
Jeremy Munson, a former three-term State Representative and 2022 candidate for Congress, said that voters are united in demanding reform.
"This is about rooting out fraud and corruption — something voters across the spectrum will rally behind," Munson said. "They want to vote for someone who stops the fraud and theft of their hard-earned money."
Munson also cited Minnesota Statute §3.084, which prohibits legislators from having a financial interest in public contracts or state-funded payments.
"Rep. Kresha's ownership of, and compensation from, Golden Shovel Agency LLC is in direct violation of this law," Munson added.
Statute reference: Minn. Stat. §3.084 — Public Officers; Interest in Contracts
Senator Joins Call for Accountability
Minnesota State Senator Nathan Wesenberg also condemned the situation, urging his colleagues not to remain silent in the face of corruption.
"How can you look your children in the eyes and tell them you are fighting for their future if you are willing to stay silent about corruption?" Wesenberg said. "I will wash my hands of this and know that in the eyes of God, I am following His path."
Wesenberg's statement, shared publicly on October 28, 2025, reflects the growing frustration among lawmakers who say ethical breaches have eroded Minnesotans' trust in their government.
Public Demands Accountability
Advocacy groups and citizens across Minnesota are calling for a House Ethics Committee investigation, urging the legislature to reaffirm its commitment to integrity and public trust.
"The public's trust is the foundation of good governance. When a lawmaker overseeing billions in taxpayer funds is accused of financial misconduct, it demands investigation — not silence."
Background on the Federal Case:
• Filed under the False Claims Act, the lawsuit alleges Golden Shovel Agency, LLC falsely certified payroll, employee counts, and ownership information to obtain forgivable PPP loans.
• The U.S. Government seeks $965,000 in damages, treble recovery, and civil penalties.
• If the court finds the company liable, penalties under the False Claims Act could include:
• Triple (treble) damages — up to three times the alleged loss to taxpayers, potentially exceeding $2.9 million.
• Civil penalties of $13,946 to $27,894 per false claim, in addition to repayment of any misused funds.
• Attorney's fees, costs, and investigative expenses owed to the government or whistleblower.
• Potential administrative debarment or suspension from future federal programs, at the government's discretion.
• The case is active; Rep. Kresha's answer deadline has been set by the court; see PACER for updates.
• The full complaint can be accessed via PACER or PacerMonitor.
Media Contact:
Name: Mary Whelan
Organization: Interactive Mary
Phone: 651.373.6009
Email: mary@interactivemary.com
Website: interactivemary.com
Editorial Disclaimer:
All allegations referenced are drawn from the publicly filed complaint United States of America ex rel et al v. Golden Shovel Agency, LLC (Case No. 60484057). The case remains pending; no findings of liability have been made as of this release.
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