Treasury tightens Minnesota fraud probe with wire‑reporting and whistleblower rewards
Treasury Secretary Scott Bessent announced a tightened federal probe into Minnesota fraud, creating an IRS task force to investigate financial institutions tied to the Feeding Our Future case — including wire flows to banks in Kenya and China — and requiring all financial institutions in Hennepin and Ramsey counties to report overseas transfers of $3,000 or more while four Twin Cities businesses are under investigation. Bessent also unveiled cash rewards for whistleblowers and Attorney General Pam Bondi said she is sending federal prosecutors to Minnesota as the administration has frozen some federal funding streams amid ongoing legal challenges.
📌 Key Facts
- Treasury Secretary Scott Bessent announced a new IRS task force focused on fraud tied to Minnesota, calling the state the 'genesis' for a national anti‑fraud rollout.
- The IRS task force will investigate financial institutions that facilitated wire transfers tied to the Feeding Our Future case, including flows to banks in Kenya and China; four unnamed Twin Cities‑based businesses are under investigation.
- Treasury is requiring all financial institutions in Hennepin and Ramsey counties to report any overseas transfer of $3,000 or more, a heightened local reporting standard.
- Bessent announced cash rewards for whistleblowers who provide information about Minnesota’s fraud, saying the administration will pay anyone who details who, what, when, where and how the fraud was done, and he characterized suspected perpetrators as 'rats' who will 'turn on each other.'
- Attorney General Pam Bondi is sending a team of federal prosecutors to Minnesota to reinforce the U.S. Attorney’s Office on the fraud cases.
- The Trump administration has already frozen multiple federal funding streams to Minnesota, including some HHS and USDA funds; a federal judge temporarily blocked a broader freeze of about $10 billion in funds to five Democratic‑led states.
- Minnesota Attorney General Keith Ellison’s office publicly rejected the claim that fraud is the 'underlying reason' for a large ICE presence in Minnesota and criticized the Trump administration’s record on fraud and pardons.
- Bessent cited an alleged incident in which a convicted Minnesota fraudster was paid $200,000 to bribe a juror but allegedly skimmed $80,000 and offered only $120,000, which he presented as evidence of ongoing corruption.
📊 Relevant Data
In Minnesota fraud-related cases, including the Feeding Our Future scandal, 85 out of 98 charged defendants are of Somali descent, with 64 convictions achieved at a 100 percent conviction rate.
Fact Sheet: President Donald J. Trump Establishes New Department of Justice Division for National Fraud Enforcement — The White House
Approximately 81 percent of Somali households in Minnesota use some form of welfare, compared to 21 percent of native households, with rates remaining high (78 percent) even after 10 years of residency versus 19 percent for natives.
Report: Nearly 90% of Somali homes with children in Minnesota on welfare — Alpha News
The Somali population in Minnesota, estimated at around 107,000 in 2024, represents about 2 percent of the state's total population of approximately 5.8 million.
By the numbers: Minnesota's Somali population, according to Census data — KTTC
The growth of the Somali community in Minnesota began in the 1990s through U.S. federal refugee resettlement programs, with organizations like Catholic Charities and the International Institute of Minnesota facilitating placement due to job opportunities, affordable housing, and robust social services.
Somali and Somali American Experiences in Minnesota — MNopedia (Minnesota Historical Society)
📊 Analysis & Commentary (1)
"The Fox News opinion by Treasury Secretary Scott Bessent comments directly on the Minnesota fraud investigations (matching the Treasury probe story), arguing for aggressive FinCEN/IRS financial measures, whistleblower incentives and interagency work to trace and recover laundered taxpayer dollars—framing the scandal as both fiscal theft and a national‑security threat and criticizing state leadership for enabling it."
📰 Source Timeline (3)
Follow how coverage of this story developed over time
- Treasury Secretary Scott Bessent announced that whistleblowers who provide information about Minnesota’s fraud scandal will receive cash payments, saying the administration will offer 'whistleblower payments to anyone who wants to tell us the who, what, when, where and how this fraud has been done.'
- Bessent, in a Fox News interview, characterized suspected perpetrators as 'rats' who will 'turn on each other' and framed whistleblower rewards as a way to achieve 'a great leap forward' in uncovering fraud.
- The piece reiterates that the Trump administration has already frozen multiple federal funding streams to Minnesota, including some HHS and USDA funds, and notes that a federal judge on the same day temporarily blocked the broader freeze of about $10 billion in funds to five Democratic‑led states.
- Bessent cited a specific incident where a convicted Minnesota fraudster allegedly received $200,000 to bribe a juror but allegedly skimmed $80,000 and offered only $120,000 as a bribe, which he uses as evidence that corruption is ongoing.
- Treasury Secretary Scott Bessent announced a new IRS task force specifically focused on fraud tied to Minnesota, using the state as the "genesis" for a national anti‑fraud rollout.
- The IRS task force will investigate financial institutions that facilitated wire transfers identified in the Feeding Our Future case, including flows to banks in Kenya and China.
- Bessent said four unnamed Twin Cities‑based businesses are currently under investigation in connection with the fraud schemes.
- Treasury is requiring all financial institutions in Hennepin and Ramsey counties to report any overseas transfer of $3,000 or more, a heightened local reporting standard.
- Attorney General Pam Bondi separately announced she is sending a team of federal prosecutors to Minnesota to reinforce the U.S. Attorney’s Office on these fraud cases.
- Minnesota Attorney General Keith Ellison’s office publicly rejected the claim that fraud is the 'underlying reason' for the large ICE presence in Minnesota and criticized Trump’s record on fraud and pardons.