Treasury Department Targets Fraud in Minnesota as Immigration Crackdown Intensifies

Sat Jan 10 2026 10:47:30 GMT+0200 (Eastern European Standard Time)

The U.S. Treasury is investigating financial transactions between Minnesota residents and Somalia, in light of ongoing immigration enforcement actions following a fatal shooting by ICE. Protests surge amid claims of community targeting and fraud schemes.

In a recent visit to Minnesota, Treasury Secretary Scott Bessent announced investigations into businesses assisting Somali residents with money transfers to combat fraud in the state. This development coincides with protests following an ICE shooting that raised tension between state and federal authorities. Critics argue these actions reflect a broader crackdown on the Somali community, as federal agencies ramp up scrutiny over financial practices amidst reports of vast fraud tied to pandemic relief funds. The state's administration under Gov. Tim Walz has pledged to collaborate with federal authorities to root out fraudulent activities.

The U.S. Treasury Department is conducting enhanced scrutiny of money transfers between Minnesota residents and their families in Somalia amid a broader crackdown on immigration in the state. Secretary Scott Bessent, during a visit, reported that four businesses helping with these transactions are under investigation due to concerns over fraudulent activities. This announcement follows a surge of protests in Minneapolis, driven by public outrage after an ICE officer fatally shot a woman, highlighting tensions between local leaders and federal agencies. President Trump has directed heightened immigration enforcement specifically targeting Somali communities in Minnesota.

The Treasury's actions are part of an effort to address extensive fraud allegations against a nonprofit suspected of misusing $300 million in pandemic aid intended for school meals. Officials emphasized that fraudulent practices will not be tolerated, and measures are being taken to recover stolen funds. As local leaders express growing concerns about federal scrutiny disproportionately affecting community members, the debate over the balance between security and fairness continues to escalate.