Here's Treasury's Plan To Take Down Somali Fraud Rings
While we patiently await more nothingburgers from DOJ's next overdue round of redacted Epstein files, the Treasury Department is going after Somali fraud rings…
On Friday, Secretary Scott Bessent announced a sweeping crackdown on government benefits fraud that has already cost Minnesota taxpayers billions. The initiatives aim to close the loopholes that have made the system rife with abuse and to increase oversight.
“President Trump has instructed the administration to bring accountability for the hardworking people of Minnesota,” Bessent said while visiting the gopher state. “Under Democratic Governor Tim Walz, welfare fraud has spiraled out of control. Billions of dollars intended for feeding hungry children, housing disabled seniors, and providing services for children in need were diverted to benefit Somali fraud rings.”
While meeting with financial leaders, victims and local law enforcement, Bessent revealed how Treasury will combat the issue that nobody seemed to care about until now (despite officials knowing for years); track the money.
Using the state's Bank Secrecy Act, Treasury's Financial Crimes Enforcement Network (FinCEN) has issued a Geographic Targeting Order which will require banks and money transmitters located in Hennepin and Ramsey Counties – and include the cities of Minneapolis and St. Paul, to report additional information about funds transferred outside of the United States. These businesses will be required to file reports with FinCEN above certain transactions of $3,000 or more where the beneficiary is located outside of the United States.
Currently, law enforcement has limited insight into the persons located abroad who receive the proceeds of the frauds. This Order will better equip Federal, state, and local law enforcement by providing them with additional information to assist in their investigations of government benefits fraud. It is expected to advance prosecutions and assist in the recovery of funds laundered internationally.
Additionally, the IRS is increasing audits and launching a new task force focused on pandemic-era tax scams. Agents are digging into nonprofits and charities that exploited the 501(c)(3) label to hide shady activity.
FinCEN even issued an alert to banks, outlining “red flags” to help them spot and prevent child nutrition program fraud before it escalates.
🚨 BREAKING: Treasury Sec. @SecScottBessent in Minnesota announces MULTIPLE INVESTIGATIONS into four Money Service Businesses caught wiring funds to the Middle East and Somalia.
Bessent confirms the full force of the IRS and Treasury is now being deployed — including enhanced… pic.twitter.com/XNccSGq0dU
— Laura Ingraham (@IngrahamAngle) January 9, 2026
In a separate interview with Laura Ingraham on Fox News, Bessent also revealed that the Treasury Department plans to pay cash to anyone who comes forward with inside information about Minnesota’s massive fraud operation.
The goal is simple: identify the fraudsters, trace how the money moved, and determine when the key decisions were made.
Bessent made clear that the administration understands how these criminal networks actually work. “We know that these rats will turn on each other,” he said. “We heard today that one of the people who has been convicted of fraud, she was given $200,000 to bribe a juror, and she was so corrupt, she skimmed $80,000 of it and only tried to give a $120,000 bribe.”
That level of corruption, he suggested, creates opportunity for law enforcement. Treasury plans to exploit it. “So we are going to offer whistleblower payments to anyone who wants to tell us who, what, when, where, and how this fraud has been done,” Bessent said. “And I think that that will give us a great report on how to get it done.”
It was a clear signal that the Trump administration intends to break these fraud rings by following the money and turning insiders into witnesses. And it likely won’t be hard to find whistleblowers. Last year, nearly 500 Department of Human Services employees blamed Gov. Tim Walz for the surge in fraud during his administration. In a post on X last year they declared, “Tim Walz is 100% responsible for massive fraud in Minnesota,” saying they raised alarms early and repeatedly, only to be met with “the opposite response.” Instead of action, they say Walz “systematically retaliated against whistleblowers using monitoring, threats, repression,” with cover from allies in Minnesota’s Democratic-Farmer-Labor Party and the help of the mainstream media.
Tyler Durden
Sun, 01/11/2026 – 09:55