Treasury Secretary Scott Bessent announced a sweeping national fraud probe. He made this declaration from Minnesota on a Friday news conference. The administration will turn over every stone for taxpayer dollars. This new effort specifically targets a massive Minnesota benefits scandal. Officials estimate the fraud involves at least nine billion dollars. Consequently, this case will launch a wider national fraud probe into other states.
Secretary Bessent outlined several powerful new enforcement measures. The IRS will immediately expand its audit and investigation teams. Financial institutions will face rigorous new scrutiny as well. Treasury will also examine nonprofit and pandemic tax credit abuse. Bessent promised to deploy every available tool against perpetrators. The goal is complete accountability for this egregious unchecked fraud. Minnesota serves as the genesis for this broader national fraud probe.
The scandal’s fallout has already created major political consequences. Minnesota Governor Tim Walz will not seek re-election now. He announced this decision amid intense scrutiny this week. Investigators identified four money service businesses for review. These Minneapolis-St. Paul firms potentially facilitated the fraud scheme. Bessent stated they violated anti-money laundering laws clearly. However, he declined to name the companies during the ongoing investigation.
Bessent suggested recovered funds could support national priorities. President Trump proposed a large defense spending increase recently. Successful fraud recovery might help finance this plan. The Secretary called this one of history’s worst welfare scams. He could not confirm any overseas direction for the scheme. More information will become public in the coming weeks. Treasury remains committed to full transparency throughout the process. This aggressive approach signals a major federal enforcement shift.
