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.