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4h ago

Treasury Cracks Down on Minnesota Fraud Networks as Walz Appoints Statewide Integrity Chief

Investigators are tracing suspected flows from pandemic-era schemes that prosecutors say stole hundreds of millions.

U.S. Treasury Secretary Scott Bessent listens prior to U.S. President Donald Trump (not pictured) signing an executive order on AI in the Oval Office at the White House in Washington, D.C., U.S. December 11, 2025. REUTERS/Al Drago
Treasury Secretary Scott Bessent speaks during an event on "Trump Accounts" for kids in the Roosevelt Room of the White House, Tuesday, Dec. 2, 2025, in Washington. (AP Photo/Evan Vucci)
Minnesota Governor Tim Walz testifies during a House Oversight Committee hearing with U.S. governors about state policies regarding undocumented migrants, on Capitol Hill in Washington, D.C., U.S., June 12, 2025.
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Overview

  • Treasury Secretary Scott Bessent imposed a geographic targeting order on money-service businesses in Minnesota and said FinCEN will issue investigative notices, with IRS examinations to follow.
  • Treasury personnel have deployed in the state to scrutinize transfers, including monitoring possible fund flows to Somalia, which officials say remain under investigation.
  • Gov. Tim Walz named former Bureau of Criminal Apprehension superintendent Tim O’Malley as Minnesota’s first director of program integrity and announced a partnership with outside firm WayPoint to build a fraud-prevention program.
  • Federal prosecutors say the Feeding Our Future operation siphoned roughly $240–$250 million, and about 78 people have been charged with at least 60 convictions secured so far.
  • Investigators also cite suspicious billing in Housing Stabilization Services and the Medicaid autism program, with state outlays rising to more than $100 million and nearly $200 million respectively, and inquiries continuing.