Bessent Leaves No Stone Unturned in Extensive Minnesota Fraud Scandal
‘Varney & Co.’ host Stuart Varney discusses the Trump administration’s effort to crack down on fraud in Minnesota and California.
Treasury Secretary Scott Bessent recently announced a comprehensive set of enforcement measures aimed at tackling fraud, particularly in Minnesota, where a significant scandal involving government benefit scams has emerged. This initiative comes as the Trump administration intensifies its efforts to recover taxpayer dollars lost to fraudulent activities.
During his visit to Minnesota, Bessent emphasized that the administration would leave “no stone unturned” in its pursuit of justice. He highlighted plans for expanded IRS enforcement, increased audits of financial institutions, and new investigations into potential abuses related to nonprofit organizations and pandemic-era tax credits.
BESSENT SAYS MINNESOTA FRAUD RECOVERY COULD HELP FUND TRUMP’S $1.5T DEFENSE PLAN
Scott Bessent, U.S. Treasury Secretary, said the Trump administration will leave ‘no stone unturned’ in recovering funds from the Minnesota fraud scandal. (Eric Lee/Bloomberg via Getty Images / Getty Images)
“Treasury will deploy all tools to bring an end to this egregious unchecked fraud and hold perpetrators to account,” Bessent stated during a news conference. He added that Minnesota would serve as a “genesis and a launching pad” for investigations in other states.
The Minnesota fraud scandal, which has garnered national attention, is estimated to involve at least $9 billion in misused funds. In light of this, Minnesota Governor Tim Walz, a Democrat, recently announced he would not seek re-election amid increasing scrutiny over the state’s handling of the situation.
MINNESOTA’S ANTI-FRAUD SPENDING HAS QUIETLY BALLOONED, LEAVING TAXPAYERS TO PAY FOR FAILURE TWICE
Bessent revealed that the Treasury has identified at least four money service businesses in the Minneapolis–St. Paul area that are under investigation for their potential involvement in the fraud scheme. However, he refrained from naming the companies due to the sensitivity of the ongoing investigation.
“These businesses had an obligation to comply with anti-money laundering laws, and they will be held responsible for any crimes they committed,” Bessent stated, noting that no charges have been filed yet, but the businesses have been notified of their investigation status.
ONE CHART LAYS BARE THE SPRAWLING FRAUD NETWORK MINNESOTA OFFICIALS MISSED
Minnesota Gov. Tim Walz announced he would no longer run for office in part due to the fallout from the Minnesota fraud scandal. (Stephen Maturen/Getty Images / Getty Images)
When questioned about Governor Walz’s potential involvement in the fraud and whether it was orchestrated from overseas, Bessent refrained from providing further details. “We do not yet know the depth, breadth, or level of collusion involved in this financial calamity that Governor Walz has allowed to occur, or whether it was directed from overseas,” he remarked.
The Treasury Department has indicated that more information will be released as investigations progress, hinting at additional disclosures and possible enforcement actions in the near future.
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Scott Bessent, U.S. Treasury Secretary, outlines the Trump administration’s priorities to address the Minnesota fraud scandal during an event at the Economic Club of Minnesota in Golden Valley, Minnesota on Thursday, Jan. 8, 2026. (Ben Brewer/Bloomberg/Getty Images / Getty Images)
In a recent address at the Minnesota Economic Club, Bessent characterized the amount of federal funds and taxpayer dollars lost to this scheme as one of “the most egregious welfare scams in our nation’s history.” He noted that President Donald Trump’s proposed $1.5 trillion increase in defense spending could be funded through the recovery of funds lost to fraud, waste, and abuse, emphasizing the importance of welfare fraud investigations as a potential source of revenue.
‘Varney & Co.’ host Stuart Varney discusses the Trump administration’s effort to crack down on fraud in Minnesota and California.
Treasury Secretary Scott Bessent recently announced a comprehensive set of enforcement measures aimed at tackling fraud, particularly in Minnesota, where a significant scandal involving government benefit scams has emerged. This initiative comes as the Trump administration intensifies its efforts to recover taxpayer dollars lost to fraudulent activities.
During his visit to Minnesota, Bessent emphasized that the administration would leave “no stone unturned” in its pursuit of justice. He highlighted plans for expanded IRS enforcement, increased audits of financial institutions, and new investigations into potential abuses related to nonprofit organizations and pandemic-era tax credits.
BESSENT SAYS MINNESOTA FRAUD RECOVERY COULD HELP FUND TRUMP’S $1.5T DEFENSE PLAN
Scott Bessent, U.S. Treasury Secretary, said the Trump administration will leave ‘no stone unturned’ in recovering funds from the Minnesota fraud scandal. (Eric Lee/Bloomberg via Getty Images / Getty Images)
“Treasury will deploy all tools to bring an end to this egregious unchecked fraud and hold perpetrators to account,” Bessent stated during a news conference. He added that Minnesota would serve as a “genesis and a launching pad” for investigations in other states.
The Minnesota fraud scandal, which has garnered national attention, is estimated to involve at least $9 billion in misused funds. In light of this, Minnesota Governor Tim Walz, a Democrat, recently announced he would not seek re-election amid increasing scrutiny over the state’s handling of the situation.
MINNESOTA’S ANTI-FRAUD SPENDING HAS QUIETLY BALLOONED, LEAVING TAXPAYERS TO PAY FOR FAILURE TWICE
Bessent revealed that the Treasury has identified at least four money service businesses in the Minneapolis–St. Paul area that are under investigation for their potential involvement in the fraud scheme. However, he refrained from naming the companies due to the sensitivity of the ongoing investigation.
“These businesses had an obligation to comply with anti-money laundering laws, and they will be held responsible for any crimes they committed,” Bessent stated, noting that no charges have been filed yet, but the businesses have been notified of their investigation status.
ONE CHART LAYS BARE THE SPRAWLING FRAUD NETWORK MINNESOTA OFFICIALS MISSED
Minnesota Gov. Tim Walz announced he would no longer run for office in part due to the fallout from the Minnesota fraud scandal. (Stephen Maturen/Getty Images / Getty Images)
When questioned about Governor Walz’s potential involvement in the fraud and whether it was orchestrated from overseas, Bessent refrained from providing further details. “We do not yet know the depth, breadth, or level of collusion involved in this financial calamity that Governor Walz has allowed to occur, or whether it was directed from overseas,” he remarked.
The Treasury Department has indicated that more information will be released as investigations progress, hinting at additional disclosures and possible enforcement actions in the near future.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Scott Bessent, U.S. Treasury Secretary, outlines the Trump administration’s priorities to address the Minnesota fraud scandal during an event at the Economic Club of Minnesota in Golden Valley, Minnesota on Thursday, Jan. 8, 2026. (Ben Brewer/Bloomberg/Getty Images / Getty Images)
In a recent address at the Minnesota Economic Club, Bessent characterized the amount of federal funds and taxpayer dollars lost to this scheme as one of “the most egregious welfare scams in our nation’s history.” He noted that President Donald Trump’s proposed $1.5 trillion increase in defense spending could be funded through the recovery of funds lost to fraud, waste, and abuse, emphasizing the importance of welfare fraud investigations as a potential source of revenue.
