Treasury orders probe of MN fraud–terror ties
The Treasury Department has opened a federal probe to trace alleged money‑laundering routes from recent Minnesota human‑services fraud to the Somali militant group Al‑Shabab, though investigators say they have not found direct evidence that fraud proceeds reached the group. Gov. Tim Walz said he welcomes federal help but questioned the timing and motives after President Trump’s posts, Republican state senators backed the inquiry, reporting noted an anonymous X account claiming to represent about 480 DHS employees was suspended and later returned, and prior probes linked some fraud proceeds to real‑estate transactions in Kenya with separate prosecutions alleging Al‑Shabab ties.
📌 Key Facts
- The U.S. Treasury has opened a probe to trace potential money‑laundering routes from alleged Minnesota fraud to the Somali militant group Al‑Shabab.
- Federal investigators say they have not disclosed any direct evidence that proceeds from Minnesota fraud reached Al‑Shabab; the probe is ongoing and Treasury says it will share findings as the investigation continues.
- Gov. Tim Walz said he welcomes federal help — “You commit fraud in Minnesota, you're going to prison” — but also questioned the investigation’s motives and timing, calling it “not a coincidence” after President Trump’s social‑media posts and expressing skepticism about the targeting.
- An anonymous X account claiming to represent roughly 480 Minnesota Department of Human Services employees — central to the viral allegations — was suspended and later returned under a new name.
- Republican state Sens. Jordan Rasmusson and Paul Utke publicly backed the federal investigation, saying Minnesotans deserve to know where fraudulent dollars went; Rasmusson cited the expanding scope of human‑services fraud as justification for federal involvement.
- Background reporting notes earlier probes linked some alleged Minnesota fraud proceeds to real‑estate transactions in Kenya; prosecutors have separately charged defendants with alleged Al‑Shabab ties in other cases, but those charges have not been tied to the fraud under investigation.
📰 Sources (3)
Minnesota fraud investigation: Treasury probes terror funding links
New information:
- FOX 9 reports federal investigators have not disclosed any direct evidence that Minnesota fraud proceeds reached Al‑Shabab.
- Gov. Tim Walz’s on‑camera quote both welcoming help and questioning the investigation’s motives/timing: “If they want to help us, I welcome that... I don't think anybody... really believes their motive and their timing is about actually doing something about this.”
- Sen. Jordan Rasmusson’s statement backing the probe and citing the expanding scope of human‑services fraud as a reason for federal involvement.
- Background detail that prior investigations connected some recent Minnesota fraud proceeds to real‑estate transactions in Kenya; prosecutors have charged defendants with alleged Al‑Shabab ties in other cases, but not tied to fraud.
- Restates the probe’s focus: tracing potential money‑laundering routes from Minnesota fraud to Al‑Shabab, with no direct link confirmed yet.
Gov. Walz 'welcomes' federal probe into fraud allegations: 'You commit fraud, you're going to prison'
New information:
- Gov. Tim Walz’s on‑camera statement: “You commit fraud in Minnesota, you're going to prison,” while saying he welcomes federal help but calls the targeting of Minnesota politically motivated.
- FOX 9 reports the anonymous X account claiming to represent ~480 Minnesota DHS employees—central to viral allegations—was suspended and later returned under a new name.
- Republican Sens. Jordan Rasmussen and Paul Utke publicly backed the federal investigation, saying Minnesotans deserve to know where fraudulent dollars went.
- Walz said it’s “not a coincidence” Minnesota is being targeted following President Trump’s social‑media posts; Treasury says it will share findings as the probe continues.