Speaking in a powerful video about accountability and his decision to crack down on blue state fraud, Trump Administration Treasury Secretary Scott Bessent revealed how he is using a crackdown on fraud in Minnesota as a “launchpad” for going after fraud in other states, using the investigation to generally hammer blue state fraudsters like the Somali migrant fraudsters in Minnesota.
As background, amongst the many aspects of the scandal regarding Somali migrant fraud in Minnesota that drew the most public furor and outrage was the discovery that much of the money stolen from state and federal taxpayers by the fraudsters was sent overseas, primarily back to Somalia. Such was the basis for the crackdown that Secretary Bessent announced.
Beginning, he announced that the Treasury Department would work tirelessly to obtain and ensure “accountability,” saying, “Earlier this morning, I met with several financial institutions and made clear we must do more to safeguard our nation from waste, fraud and abuse. The time has come from accountable, for accountability. President Trump wants accountability. I want accountability. The American people want accountability, and they will get accountability.”
Continuing, he noted that his department was cracking down on Minnesota with the aim of then using that crackdown to go after other blue state fraudsters as well. He said, “That is why I’m announcing several initiatives Treasury is taking to target fraud here in Minnesota, and the Minnesota protocols will serve as a genesis and a launching pad for investigations into other states.”
Then, noting in more detail what actions are being taken to crack down on the fraudsters, the Treasury Secretary explained, “First, we have followed the money and identified the money service businesses that may have transferred, transferred taxpayer funds overseas. Our team at FINCEN has just provided formal notification to these businesses that they are under investigation. These businesses had an obligation to comply with anti-money laundering laws, and they will be held responsible for any crimes they committed.”
Building on that, he noted that certain counties most known for fraud, and the businesses within them, were going to face very close scrutiny as the Treasury digs into the illegal behavior. He said, “FINCEN has also issued a geographic targeting order for Hennepin and Ramsey Counties that require banks and money transmitters to report additional information about funds transferred outside of the United States. This will put a microscope on these businesses, advance prosecutions and assist in the recovery of funds laundered internationally. Fraudsters in Minnesota stole at least 300 million meant for children in need, and we must prevent fraud of this scale from occurring in the future.”
He then noted that the IRS was sending investigators after the blue state fraudsters as well, saying, “Accordingly, FinCEN today issued an alert to financial institutions that will help them identify and report specific warning signs of fraud and federal child nutrition programs, fraud must be stamped out early, and this alert will help law enforcement do just that. Our [IRS investigators] have played a critical role in uncovering fraud, and the role the IRS in these investigations will continue. I am pleased to announce that IRS civil enforcement is auditing financial institutions that facilitated the laundering of Minnesota funds.”
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Then, building on that, Bessent revealed that non-profits and NGOs are facing close scrutiny and a crackdown as well, saying, “In addition to helping support criminal and civil enforcement efforts, the IRS will also soon announce the formation of a task force to investigate any fraud and abuse involving pandemic-era tax incentives and misuse of 501c3 tax exempt status by entities implicated in the Minnesota-based social services fraud schemes. We are committed to preventing fraud and non-fraudulent nonprofits from taking advantage of the American taxpayer.”
And, vowing that Gov. Walz of Minnesota will not be allowed to get in the way, he said, “Lastly, Treasury is providing training to Minnesota law enforcement on how to utilize financial data such as suspicious activity reports to better combat these fraud schemes. We will not let the incompetence and recalcitrance of Governor Walz stop law enforcement from holding these perpetrators accountable.”
Concluding, he vowed that the Treasury was deploying every possible tool to crush the fraudsters, saying, “President Trump is dedicated to ensuring honest Minnesotans are not cheated, and their hard-earned tax dollars are not being abused. Treasury will deploy all tools, all tools, to bring an end to this egregious unchecked fraud and hold perpetrators to account. We look forward to sharing our findings and keeping you all updated.”
Watch him here:
Featured image credit: screengrab from the embedded video