Scott Bessent says alleged Somali fraud scheme is under investigation for possible extremist links

NEW YORK CITY, NEW YORK: Treasury Secretary Scott Bessent has launched an investigation into the Minnesota Somali fraud allegedly carried out by dozens of Somali Americans in the state.

According to authorities, the scheme may have taken more than a billion dollars in taxpayer funds, and they are now examining whether any of the money has foreign links to extremist activities.

Treasury investigates Minnesota fraud tied to overseas funds

Bessent, during an appearance on 'Face the Nation' on CBS on Sunday, December 7, said Somalis who move to the US have to “learn not to defraud the American people.”

He told host Margaret Brennan that the Treasury is now investigating a billion-dollar fraud scheme carried out by dozens of Minnesota residents of Somali descent.

He noted that it was alarming that many of them donated stolen tax dollars to Minnesota Gov Tim Walz (D), Rep Ilhan Omar (D-MN), and state Attorney General Keith Ellison (D); he also said his department was investigating whether the money was used to fund t**rorism.

Bessent said, “To be clear, the initial fraud that was discovered by the IRS, for which I’m the acting commissioner, it was discovered by IRS Criminal Investigation Unit. This was not endogenous that the state of Minnesota decided. We had to go in and clean up the mess for them, and this is part of the continued cleanup.”

“A lot of money has been transferred from the individuals who committed this fraud, including those who donated to the governor, donated to representative Omar, and to AG Ellison."

“They have been transferred to something called MBSs… these are Money Bureau Services, and they are wire transfer organizations that are outside the regulated banking system. And that money has gone overseas, and we are tracking that, both to the Middle East and to Somalia, to see what the uses of that have been.” 

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“But you have no evidence of that money being used to fuel t*rrorism at this point, which is what some conservative writers are alleging,” Brennan followed up.

“That’s why it’s an investigation,” Bessent responded. “We started it last week. We will see where it goes.” The two discussed the topic just days after President Donald Trump attacked Omar, calling her “garbage,” an anti-Semite, and a “terrible person.” 

The president said he did not want more Somalis like Omar coming to the US, claiming most of them were “ripping off” the American taxpayer.