Treasury issues GTO on Minnesota MSBs, deploys teams in fraud probe
Treasury Secretary Scott Bessent issued a Geographic Targeting Order requiring enhanced reporting by Minnesota money services businesses and has deployed Treasury personnel on the ground as FinCEN and the IRS prepare Notices of Investigation and heightened examinations, with reports to be rapidly shared with law enforcement. The actions tie to scrutiny of the Feeding Our Future pandemic‑era fraud — a roughly $250 million scheme that has produced about $60 million recovered, at least 77 indictments and high‑profile sentences — as Treasury says it is tracking transfers to the Middle East and Somalia amid disputed claims about links to al-Shabaab (investigators have also documented extensive luxury spending) and allegations by Bessent that some defendants donated to Minnesota officials.
đź“Ś Key Facts
- Treasury issued a Geographic Targeting Order (GTO) focused on Minnesota money services businesses (MSBs) to increase reporting to FinCEN; FinCEN will send Notices of Investigation to MSBs of concern, the IRS will examine those businesses, and Treasury personnel have been deployed on the ground in Minnesota to investigate and rapidly share reports with law enforcement.
- Treasury Secretary Scott Bessent said money tied to the Minnesota fraud scheme "has gone overseas," that Treasury is tracking flows to the Middle East and Somalia to determine their uses, and he cited a Nov. 19 City Journal report alleging some welfare funds reached al-Shabaab.
- The case centers on the Feeding Our Future fraud — an estimated $250 million COVID-era scheme — with at least 77 people indicted, roughly $60 million recovered so far, and recent major sentences and restitution orders (including Abdimajid Mohamed Nur: 10 years and nearly $48 million restitution; Abdiaziz Shafii Farah: 28 years).
- Court exhibits and records show extravagant personal spending and cross-border transfers by defendants (Maldives overwater villa, first-class travel, Porsche, lakefront home), including Farah’s six wire transfers totaling over $1 million to banks in China (Feb–Jul 2021) and nearly $3 million sent to Kenya; investigators also found text messages requesting money to 'Mogadishu bakara' and images of large cash stacks.
- Multiple federal investigators, and former U.S. Attorney Andy Luger, told CBS there is no evidence the stolen funds were funneled to al-Shabaab and say the money was used for personal luxury spending.
- Political and enforcement pressure has mounted: Minnesota Republicans (including Rep. Tom Emmer) pressed federal prosecutors to investigate, Bessent said some charged individuals donated to Gov. Tim Walz, Rep. Ilhan Omar and AG Keith Ellison, and reporting signaled imminent ICE operational activity in Minnesota.
- Rep. Ilhan Omar responded that any proven link between the fraud proceeds and terrorism would be 'a failure of the FBI and our court system,' said her campaign returned implicated donations years ago, noted she previously asked USDA to scrutinize the program, and condemned inflammatory remarks about Somali immigrants.
đź“Š Relevant Data
Approximately 107,000 people of Somali descent live in Minnesota as of 2024, representing about 2% of the state's total population of around 5.7 million.
By the numbers: Minnesota's Somali population, according to census data — KTTC
About 36% of the Somali population in Minnesota lives below the poverty level, compared to the statewide poverty rate of 11.1%.
Inside 'Little Mogadishu': Minnesota's beleaguered Somali community and its push for belonging — Fox News
About 39% of working-age Somali immigrants in Minnesota have no high school diploma, compared to 5% of native-born Minnesotans.
Somali Immigrants in Minnesota — Center for Immigration Studies
The employment rate for working-age male Somalis in Minnesota is 75.9%, compared to the overall state employment rate for working-age adults of around 80%.
Somali population - Cultural communities — Minnesota Compass
The Somali population in Minnesota has grown significantly from about 58,800 in 2018 to approximately 107,000 in 2024, largely due to immigration and refugee resettlement.
Data by Topic - Immigration & Language — MN State Demographic Center
đź“Š Analysis & Commentary (2)
"The column uses recent reporting on the Feeding Our Future fraud (money tracked overseas with many Somali-linked suspects) to argue that Minnesota’s Somali enclave has amassed political power without sufficient assimilation, calling for greater accountability and questioning whether cultural separation should allow the same access to political influence."
"A conservative opinion piece uses the Feeding Our Future and related Minnesota program abuses (the story covered in 'Bessent says fraud money tracked overseas as Omar rebuts terror link on Face the Nation') to argue that mass refugee resettlement and generous welfare access—combined with cultural differences and political protection—produce hidden fiscal and governance costs that demand tougher vetting and accountability."
đź“° Sources (6)
- Treasury issued a Geographic Targeting Order focused on Minnesota money services businesses to boost reporting to FinCEN.
- Bessent said Treasury personnel are deployed on the ground in Minnesota to investigate MSBs tied to alleged fraud schemes.
- FinCEN will issue Notices of Investigations to MSBs of concern and the IRS will examine these businesses.
- Bessent emphasized enhanced scrutiny of transfers to areas of concern such as Somalia and said reports will be quickly shared with law enforcement.
- CBS published trial exhibits showing luxury spending (Maldives overwater villa, first-class tickets, Porsche, lakefront home) and overseas transfers tied to Minnesota defendants.
- Records show Abdiaziz Shafii Farah made six wire transfers worth over $1 million to banks in China (Feb–Jul 2021) and defendants sent nearly $3 million to Kenya.
- Multiple federal investigators told CBS there is no evidence the stolen funds were funneled to al-Shabaab; former U.S. Attorney Andy Luger said the money went to personal luxury spending.
- Defendant Abdimajid Mohamed Nur was sentenced to 10 years in prison and ordered to pay nearly $48 million in restitution; Farah was sentenced to 28 years last month.
- Text messages include a request to send $1,000 to 'Mogadishu bakara' and images of large cash stacks.
- Confirms a new Treasury Department probe alongside broader GOP-driven inquiries.
- Updates recovery figures: ~$60 million recovered so far.
- Reiterates scope: at least 77 people indicted in Minnesota tied to the case.
- Notes a recent $48 million restitution order with a 10-year prison sentence for one defendant.
- Signals imminent ICE operational activity in Minnesota.
- Treasury Secretary Scott Bessent said on Face the Nation that money tied to the Minnesota fraud scheme 'has gone overseas,' and Treasury is tracking flows to the Middle East and Somalia to determine their uses.
- Bessent alleged some individuals charged in the fraud donated to Gov. Tim Walz, Rep. Ilhan Omar, and AG Keith Ellison.
- Rep. Ilhan Omar said any link between the fraud proceeds and terrorism would constitute 'a failure of the FBI and our court system,' asserted her campaign returned implicated donations 'a couple of years ago,' and noted she previously asked USDA to scrutinize the program.
- Omar condemned the president’s recent remarks about Somali immigrants as 'disgusting' and warned such rhetoric can spur dangerous actions.
- CBS specifies Treasury Secretary Scott Bessent shared a Nov. 19 City Journal report alleging Minnesota welfare funds reached al Shabaab.
- Adds that Minnesota Republicans, including Rep. Tom Emmer, pressed federal prosecutors to investigate.
- Context from a 2019 Minnesota Office of the Legislative Auditor report: it was unable to substantiate claims that Child Care Assistance Program funds went to terrorist groups, though it said such transfers were possible.
- U.S. Attorney Andy Lugar (Minnesota) told the Star Tribune last month that Feeding Our Future defendants aimed to get rich, not fund overseas terrorism.
- Recaps the scale of the Feeding Our Future case: a $250 million fraud scheme during the COVID-19 pandemic.