Trump officials tout expansive ‘war on fraud’ in Minnesota

Feds detailed a $41 million indictment, ongoing investigations and a centralized, $25 million whistleblower incentive program during the presser.(CN) — Trump administration officials announced updates to a so-called “war on fraud” in Minnesota on Friday, boasting about recent successes while further denouncing social services fraud they say originated under Democratic leadership in the state.Treasury Secretary Scott Bessent, FBI Director Kash Patel and other top federal officials took part in the St. Cloud, Minnesota, press conference, where they described Minnesota as “ground zero” for addressing the “fraud epidemic.”“The industrial-scale fraud that Tim Walz shamefully and perhaps knowingly allowed to fester is the defining legacy of his administration,” Bessent said. “With President Trump back in office, Washington is no longer content to watch Minnesota’s fraud epidemic spiral from a distance.”Patel announced FBI Minneapolis executed 17 search warrants Thursday that resulted in arrests of four people accused of over $41 million in fraud across healthcare and childcare facilities.“To any fraudsters who continue or think they will continue to defraud Americans, this FBI will continue to work with our interagency partners, and we will put every last one of you in prison,” Patel said.Officials hailed recent developments in the state, including Wednesday’s 30-year sentencing of Feeding our Future “architect” Salim Said for falsely claiming to have furnished thousands of meals while serving only a fraction.His sentencing follows a string of federal penalties in the pandemic-era food fraud scheme, including a nearly 42-year sentence for founder Aimee Bock this past May.In addition to celebrating enforcement actions, officials also referenced the newly created $25 million whistleblower incentive program that includes rewards of up to $30,000 for those who submit information leading to a fraud conviction.“Until now, any citizen who detected fraud was forced to navigate a maze of tip lines scattered across law enforcement agencies,” Bessent said. “No more.”Dr. Mehmet Oz, administrator for the Centers for Medicare & Medicaid Services, also spoke Friday, pointing to the now-defunct Minnesota Medicaid Housing Stabilization Services program as a primary example of the effect of fraud in the state.He highlighted one criminal scheme resulting in over $3.5 million in stolen funds — contributing to an unsustainable 4,000% surge in program spending over a few years.“That degree of fraud, again, you have to purposely be averting your gaze to allow that to happen,” Oz said, noting individuals who relied on that program are now left helpless.Federal Trade Commission chief Andrew Ferguson, also vice chair of the White House fraud task force, added that efforts to weed out fraud in Minnesota must continue in order to rebuild public trust.“This system won’t work, our benefits system won’t work, our government won’t work, unless Americans have renewed trust in each other and in their government,” he said. “If we don’t win this fight, social trust will continue to degrade in this country… and these programs won’t survive.”Assistant U.S. Attorney Colin McDonald said federal prosecutors charged five individuals this week in Medicaid fraud schemes totaling over $48 million, expanding on what he described as the “largest fraud takedown” in the state this past May.Oz and other officials noted they would continue to deploy heavy federal oversight domestically, and are expanding financial monitoring and overseas investigations through the Treasury Department’s Financial Crimes Enforcement Network.President Donald Trump formed the fraud task force and appointed Vice President J.D. Vance as chair in March — using claims of social service program fraud in Minnesota as the anchor for its establishment.Vance was initially scheduled to attend the presser, but canceled late Thursday.While Minnesota Democrats have made clear the importance of addressing fraud, many claim the Trump administration’s focus on the state is nothing more than “political retribution.”Bessent addressed such concerns Friday, noting while fraud occurs across the country, Democrats like Walz have “turned a blind eye” and are now trying to deflect blame.“I can tell you that the guardrails tend to be loosest in the Democratic states,” he said.The Trump administration has uncovered over $260 billion in fraud nationwide since January 2025, Bessent claimed.Fraud is a hot-button topic among Minnesotans as the midterm election nears, and Democrat and Republican candidates alike have all stated their intent to address the issue that drove Walz out of office.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads