U.S. Treasury Secretary pushes for Minnesota fraud crackdown on fraud as tensions over ICE efforts flare

U.S. Treasury Secretary Scott Bessent announced the creation of a new IRS task force and other measures to combat fraud, underscoring the Trump administration’s focus on Minnesota amidst the immigration crackdown.

“Minnesota is going to be the protocols, procedures and investigative techniques and collaboration. Minnesota is going to be the genesis for a national rollout,” Bessent said. “Treasury will deploy all tools to bring an end to this egregious, unchecked fraud and hold perpetrators to account.”

According to Bessent, the IRS task force will specifically probe financial institutions that facilitate wire transfers, as evidence from the Feeding Our Future trial showed some suspects sent money to banks in Kenya and China. Bessent added that four Twin Cities-based businesses are under investigation, but did not share their names. The department is also requiring all financial institutions in Hennepin and Ramsey County to report any overseas transfer of $3,000 or more.

“Think of the absurdity of money being wired from Minnesota by these individuals that could have come from government programs or from excess benefits,” Bessent added. “This should not be wired out of the country and we are going to be cracking down on that.”

Bessent’s visit also comes on the heels of Attorney General Pam Bondi’s announcement that a team of prosecutors is headed to Minnesota “to reinforce our U.S. Attorney’s Office and put perpetrators of this widespread fraud behind bars.” 

“We will deliver severe consequences in Minnesota and stand ready to deploy to any other state where similar fraud schemes are robbing American taxpayers,” Bondi said.

Reached for comment, Minnesota Attorney General Keith Ellison’s office said it “categorically rejects the premise that the ‘underlying reason’ Trump has ordered the outsized presence of ICE in Minnesota is because of fraud,” and said “Ellison does have extensive experience in successfully fighting fraud.”

“What Donald Trump knows about fraud isn’t fighting it, it’s actually letting fraudsters out of prison,” Ellison’s office added.