Bessent said his agency has launched a series of actions to combat fraud in the state and has launched investigations into four businesses that people use to wire money to family members abroad to do more to scrutinize transactions. He did not name the businesses.
The Treasury first announced last month that it would begin targeting money service businesses, focusing on remittances to Somalia.
The department's actions have been prompted in part by a series of fraud cases, including a nonprofit called Feeding Our Future accused of stealing coronavirus pandemic aid meant for school meals. Prosecutors have put the losses from that case at $300 million.
The founder of Feeding our Future, Aimee Bock, was charged with multiple counts involving conspiracy, wire fraud and bribery and was convicted in March while maintaining her innocence.
Key Treasury actions include Financial Crimes Enforcement Network investigations into Minnesota-based money services businesses, enhanced transaction reporting requirements for international transfers from Hennepin and Ramsey counties, and alerts to financial institutions on identifying fraud tied to child nutrition programs.
“Treasury will deploy all tools to bring an end to this egregious unchecked fraud and hold perpetrators to account,” Bessent told reporters on Friday.
Some reports have indicated that there has been at least $9 billion of taxpayers monet lost to people in Minnesota setting up false agencies that claim to be running daycares and food relief programs.
