Treasury Secretary Scott Bessent said Friday that multiple money service businesses in Minnesota were under investigation for potentially transferring money stolen from the federal government overseas to Somalia.
Bessent made the comments during a press conference from the Minneapolis-St. Paul area where he announced actions that the Treasury Department and the IRS are taking to crack down on fraud. He said that multiple money service businesses — non-bank financial institutions that transmit money — had been informed that they were under investigation.
“Our citizens have a right to know that their tax dollars are not being diverted to fund acts of global terror, or to fund luxury cars for fraudsters. Democratic Governor Tim Walz has allowed welfare programs and fraud to spiral out of control,” he said. “Billions of dollars intended for hungry children, housing for disabled seniors, and services for children with special needs were diverted to people who cheated the system, some of whom are not even American citizens.”
Bessent said that the IRS and the Financial Crimes Enforcement Network (FinCen), the arm of the Treasury that investigates money laundering and terrorist financing, were looking into whether money fraudulently obtained through welfare programs went to Al-Shabaab, an Islamic terror group in Somalia.
Both agencies are investigating whether financial institutions complied with regulations to detect money laundering and other illicit activities. He did not disclose which money service businesses were under investigation.
“These businesses had an obligation to comply with anti-money laundering laws, and they will be held responsible for any crimes they committed,” he said.
Additionally, Bessent said that banks in Hennepin County, which encompasses Minneapolis, and Ramsey County, home to St. Paul, were being required to submit information about money transferred overseas.
Bessent estimated that around $300 million in funds had been fraudulently taken from the federal government through welfare programs meant to help impoverished children.
When asked by The Daily Wire&#8217;s Mary Margaret Olohan during the conference if Walz may be potentially wrapped up in the investigation, Bessent said, “It&#8217;s clear that Governor Walz has been negligent in his fiduciary duties as the chief executive of the state of Minnesota that this would happen on his watch, and we are actively pursuing all leads to see the level of involvement, whether it&#8217;s limited to just negligence and incompetence, or is something more than that.”
<blockquote class="twitter-tweet">
.<a href="https://twitter.com/MaryMargOlohan?ref_src=twsrc%5Etfw">@MaryMargOlohan</a> asks Sec. Bessent what role Tim Walz played in the Somali fraud scandal: <a href="https://twitter.com/SecScottBessent?ref_src=twsrc%5Etfw">@SecScottBessent</a>: &#8220;It&#8217;s clear that Gov. Walz has been negligent&#8230;We are actively pursuing all leads to see the level of involvement whether it&#8217;s limited to negligence and incompetence or… <a href="https://t.co/AY5IGfprY9">pic.twitter.com/AY5IGfprY9</a>
— Daily Wire (@realDailyWire) <a href="https://twitter.com/realDailyWire/status/2009671316090003698?ref_src=twsrc%5Etfw">January 9, 2026</a></blockquote>
In recent weeks, the Trump administration has mobilized multiple departments to investigate alleged widespread fraud in Minnesota, including allegations that millions of taxpayer dollars have been funneled to fraudulent daycares across the state throughout the past ten years.
The Department of Health and Human Services has stopped funding for childcare and other welfare programs to Minnesota while federal law enforcement investigates. 

<script async src="https://www.instagram.com/embed.js"></script>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://www.tiktok.com/embed.js"></script><div data-widget-host="revcontent" data-pub-id="165152" data-widget-id="290588"></div><script src="https://delivery.revcontent.com/165152/290588/widget.js"></script>

Feds Flag Financial Institutions That May Have Sent Money To Somali Terrorist Org

CONTINUE READING

Trump Dismantles Jill Biden’s ‘Stroke’ Claim

Bezos-Owned Rocket Explodes, And It Looks Like A Nuclear Bomb Went Off

Obama-Appointed Judge Caught Fornicating In Chambers Within Earshot Of Clerks

FBI Uncovers Secret Gold Stash During Raid Of Former CIA Officer’s Home

Jill Biden’s Latest ‘Stroke’ Claim Runs Into One Big Problem

Despite Trump Pledge, Taxpayer Money Is Still Funding Leftist Scientists’ Puberty Blocker Study

News

Crime

Fraud

Minneapolis

Minnesota

Scott Bessent

Somalia

Treasury Department

U.S.

A video goes viral showing a baby being refused his mother by two gay "dads". This is just the tip of the iceberg, which is why we will have an important discussion today about surrogacy. 

Hour 1

The Matt Walsh Show

Ep. 1765 - This Video Is One Of The Worst Things I've Seen In A Long Time 

The Strait of Hormuz officially opens for business (kind of), the Pope makes “shocking” comments on immigration, and President Trump promises UFO disclosure at TPUSA. 


The Michael Knowles Show

Ep. 1956 -  Pope Leo's "SHOCKING" Immigration Comments EXPLAINED

A false miscreed has corrupted our leadership class.


The Andrew Klavan Show

Ep. 1275 - Dumb, Dumber and Progressive

President Trump announces a 10-day ceasefire between Lebanon and Israel, a murder-suicide involving former Democratic Lieutenant Governor Justin Fairfax shakes Virginia, and France and Britain hold a conference to secure the Strait of Hormuz – after the Iranian conflict ends. Get the facts first with Morning Wire.

- - -

Ep. 2738

- - -

Wake up with new Morning Wire merch: https://bit.ly/4lIubt3

- - -

Today's Sponsors:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text 'WIRE' to 83848 to learn more.

Pocket Hose - Text MORNING to 64000 to get a FREE pocket pivot and their 10-pattern sprayer with the purchase of ANY size Copper Head hose. Message and data rates may apply.

Morning Wire

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26 [Member Exclusive]

A ceasefire goes into effect between Israel and Lebanon, a tragic murder-suicide rocks Virginia, and Dairy Queen deploys AI in the drive-thru. Get the facts first with Evening Wire.
- - -
Ep. 2737
- - -
Wake up with new Morning Wire merch: https://bit.ly/4lIubt3 
- - -
Today’s Sponsor:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text “WIRE” to 83848 to learn more.


Evening Wire: Lebanon Ceasefire Begins & Murder-Suicide Rocks VA | 4.16.26

The Pendragon Cycle

Menu

— News —

Feds Flag Financial Institutions That May Have Sent Money To Somali Terrorist Org