U.S Treasury Secretary Scott Bessent Takes Decisive Action Against Somali Fraud in Minneapolis

MINNEAPOLIS, MN - Last week, Secretary of the Treasury Scott Bessent announced several initiatives to combat the billions of dollars in rampant government benefits fraud in Minnesota. Secretary Bessent also held a roundtable discussion with victims of the Somali fraud scheme, met with financial institutions, shared the administration's economic vision for 2026 at the Economic Club of Minnesota, and spoke with high school students about the importance of financial literacy.

Secretary Bessent announced that Treasury has issued notices of investigation to multiple money services businesses operating in Minnesota, implemented a Geographic Targeting Order requiring enhanced reporting of certain international transactions which can accelerate prosecutions and the recovery of laundered funds, released an alert to financial institutions regarding fraud in federal child nutrition programs, and held a specialized training session for law enforcement to improve the use of financial data in fraud investigations. Additionally, the IRS initiated audits of financial institutions suspected of laundering fraud proceeds and announced the creation of a task force to investigate misuse of pandemic-era tax incentives and 501(c)(3) status.

• "Under President Trump's leadership, the entire administration is focused on delivering results for the American people. Our citizens have a right to know that their tax dollars are not being diverted to fund acts of global terror or to fund luxury cars for fraudsters." - Secretary Scott Bessent

• "It is clear that Governor Walz has been negligent in his fiduciary duties as the chief executive of the state of Minnesota, that this would happen on his watch, and we are actively pursuing all leads to see the level of involvement, whether it's limited to just negligence and incompetence or is something more than that."- Secretary Scott Bessent

• "...All entities in the administration will be pursuing this so that we can get the biggest recoveries possible and we will see, and we are going to leave no stone unturned, whether it was fraudulent real estate, whether it is money that has been wired overseas, we will be tracking it to the Middle East and East Africa. This is why Treasury is involved. This is what we do. We track, we follow the money, and we intend to follow it. As much as we can prosecute the individuals no matter where they are, whether they are in the Minnesota government or they are sitting in East Africa, we will find them."- Secretary Scott Bessent

• "And we view this crime as very similar to the cartel's money laundering. Many of the same approaches, many of the same shell companies. So, we will see where it goes out from here. That will be a starting point. And as I said, Minnesota is going to be the protocols, the procedures, and the investigative techniques as well as the collaboration with other agencies. Minnesota is going to be the genesis for a national rollout." - Secretary Scott Bessent

Click here to watch press conference.

Secretary Bessent led a roundtable discussion with fraud victims, state leaders, law enforcement, and community members to tackle the growing crisis of government benefits fraud. The discussion focused on strengthening efforts to identify, report, and investigate fraud and hold perpetrators accountable. Roundtable participants slammed Governor Tim Walz for his lack of action in addressing the crisis and allowing the citizens of Minnesota to be taken advantage of.

• "Treasury is here today because this is what we do. We follow the money. Earlier this morning, I met with financial institutions and made clear we must do more to safeguard our nation and protect our financial system from waste, fraud, and abuse...One [other] thing that we are going to announce is incentives for whistleblowers. If these fraudsters want to turn on each other, we welcome that. We will be offering cash rewards to whistleblowers." - Secretary Scott Bessent

• "Minnesota does not have to face a choice between tolerating fraud and shutting down an entire sector. There's a better path. Legitimate providers welcome oversight, and we are disgusted that this was allowed to happen....A blanket shutdown does not distinguish between fraud and fidelity. It punishes the innocent while not targeting the criminals. Clinics are closing. Families are losing care. Children with autism are experiencing service disruptions that will have lifelong consequences." - Jennifer Larson, founder Holland Center and autism services advocate

• "Two billion dollars could fund our entire police department for the next ten years. That's how much money we're talking about so far. And this is probably just the tip of the iceberg." - Mark Ross, president, St. Paul Police Federation

• "Once you steal $35,000, you might as well steal $35 million because the penalty is the same. The laws in Minnesota are just not adequate to hold these folks accountable." - Sheriff Kyle Burton, Mille Lacs County, Minnesota

• "On the media issue, we truly have one of the most cowardly and complicit media structures in place in the country. I would say that is why the fraud was never tackled head on." -Liz Collin, Journalist

• "So, with your help and with the help of others in the administration, the pervasive fraud that has flourished in our state, will stop now. I thank our administration partners for stepping in where Governor Walz and Minnesota Democrats have failed." - Rep. Lisa Demuth, Minnesota Speaker of the House

Click here to watch roundtable.

At the Economic Club, Secretary Bessent laid out how President Trump's successes have delivered a rapid economic turnaround, citing strong GDP growth, rising investment, and the improvement of real wages. Secretary Bessent highlighted how the current growth is an early stage of a broader economic expansion heading into 2026.

• "President Trump has incentivized historic investments in both American individuals and industries through the working families tax cut, which is stimulating long-term investment in the productive capacity of the American economy. By allowing full expensing for factories, equipment, and farm structures, the bill lowers the cost of capital and makes it cheaper to build in America. This has spurred a capex comeback with a 12% surge in business investment through the first three quarters of 2025, the largest non-pandemic increase in over a decade. More investment means more supply and more supply means lower prices for the consumer goods families rely on." - Secretary Scott Bessent

• "Under Governor Tim Walz, billions of dollars intended for families in need, housing for disabled seniors, and services for children were diverted to benefit fraudsters. I am here this week to signal the U.S. Treasury's unwavering commitment to recovering stolen funds, prosecuting fraudulent criminals, preventing scandals like this from ever happening again, and investigating similar schemes state by state." - Secretary Scott Bessent

Click here to watch Secretary Bessent's remarks before the Economic Club of Minnesota.

Recap of Key Announcements and Visits: