Day: January 10, 2026
‘Financial calamity’: Bessent blasts Minnesota Democrats’ massive fraud fiasco, launching sweeping interventions
Treasury Secretary Scott Bessent held a press conference on Friday to address the rampant fraud in Minnesota that has exploded in headlines over recent weeks.
“I am optimistic that we are going to put an end to this waste, fraud, and abuse, that we are going to have recoveries for the American people, and that we are going to hold people accountable, set an example, and make sure that federal aid gets to the people it was intended for and not to these fraudsters,” Bessent stated.
He hammered the state’s left-wing leaders, including Gov. Tim Walz (DFL), for forcing residents to endure their “egregious negligence” and allowing taxpayer-funded welfare fraud to “spiral out of control.”
“Billions of dollars intended for hungry children, housing for disabled seniors, and services for children with special needs, were diverted to people who cheated the system — some of whom are not even American citizens,” Bessent continued.
Minnesota fraudsters stole at least $300 million in taxpayer funds intended for children in need, the secretary estimated.
He announced that the Treasury Department is actively investigating these issues, confirming that some of the funds could have been transferred out of the country to terrorist organizations, such as Somali-based al-Shabaab.
President Donald Trump, Treasury Secretary Scott Bessent. Photo by SAUL LOEB/AFP via Getty Images
Bessent assured the American people that President Donald Trump and his entire administration are committed to “restoring accountability” and putting Minnesota “back on the right track.”
In response to the pervasive fraud schemes, Bessent announced several new initiatives, including investigations into money service businesses that may have transferred funds overseas, a geographic targeting order for Hennepin and Ramsey Counties that lowers the reporting threshold for overseas transfers to $3,000, and a new IRS task force to investigate COVID-era fraud.
Additionally, he noted that the Financial Crimes Enforcement Network issued an alert to financial institutions to help them identify and report fraud tied to federal child nutrition programs. The Treasury Department is also training Minnesota law enforcement officials on how to detect such schemes.
“We will not let the incompetents and recalcitrants of Governor Walz stop law enforcement from holding these perpetrators accountable,” Bessent declared.
The new protocols placed on Minnesota will serve as a “genesis and a launching pad” for a national rollout.
RELATED: Bessent delivers bad news to Somalis on welfare: No more wire transfers to the homeland
Minnesota Gov. Tim Walz. Photo by Stephen Maturen/Getty Images
A reporter pressed Bessent about Walz’s potential role in the state’s failure to identify and stop the fraud.
“We are actively pursuing all leads to see the level of involvement, whether it’s limited to just negligence and incompetence, or is something more than that,” Bessent responded.
When asked whether Somali government officials directed their citizens to relocate to Minnesota to exploit vulnerable systems, or whether the fraudsters were acting on their own, Bessent replied, “We do not know the depth, breadth, and collusion in this financial calamity that Governor Walz has allowed to have happen.”
“Was this directed from overseas? Is it an endogenous flourishing of these fraudsters that Governor Walz allowed to grow right here in the backyard and take advantage of hardworking people of Minnesota? We’ll see. … We will get to the bottom of it,” he continued.
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Somali refugee quits Maine city council hours into term amid gun charge and residency scandal — but blames exit on racism
A Somali refugee who was sworn in as a Maine city council member earlier this week announced his resignation less than 72 hours later amid pending gun-theft charges and other troubling allegations.
Iman Osman, 36, won the city council election in November to represent Lewiston City Council’s Ward 5. Osman previously held a position on the Lewiston School Committee after the mayor nominated him to fill a vacancy.
‘The level of attacks, the vitriol, the racism, and the threats have gotten to the point where he felt like it was in the best interest of his family, his community, and the city to step aside.’
The Lewiston City Council swore in Osman on Monday. However, on the same day, council members voted to initiate an investigation into him.
Authorities charged Osman with crimes related to gun theft in early December after he was accused of obtaining stolen firearms belonging to two separate estates. He has denied all criminal charges and pleaded not guilty on Wednesday, the Maine Wire reported.
Osman’s position on the city council came under further scrutiny when he was accused of falsely listing a condemned building owned by his brother as his residence. There has been speculation that Osman listed the bogus address to secure his previous position on the Lewiston School Committee and his seat on the Lewiston City Council. Critics have raised concerns that Osman does not live in the ward he was elected to represent, which would make him ineligible to serve.
Amid the ongoing controversy and the council’s plan to investigate his residency, Osman submitted his resignation letter to the mayor and city council president on Thursday morning.
“This decision has not come lightly; it stems from my unwavering commitment to the very community I have dedicated my entire life to serving,” Osman wrote in his resignation letter, a copy of which was obtained by the Maine Wire.
“Last year, I ran for City Council because I believed we needed a new voice in city government,” he continued. “Despite racist opposition, I defeated an incumbent to become the first Black man ever elected to the Lewiston City Council. In my time in public office, I have faced vicious personal attacks that not only target me but also seek to silence the marginalized voices I have always sought to uplift.”
RELATED: Somali refugee joins Maine city council despite gun charges and residency red flags
Image source: Lewiston City Council YouTube screenshot
Osman’s resignation letter did not address any of the allegations against him.
“He was absolutely confident that he would have prevailed in the residency investigation introduced by the city council on Monday,” Kiernan Majerus-Collins, Osman’s attorney, told WMTW. “But the level of attacks, the vitriol, the racism, and the threats have gotten to the point where he felt like it was in the best interest of his family, his community, and the city to step aside.”
“The fact that the Trump administration is targeting Somali and Somali-Americans across the country absolutely played a role in ginning up the kind of hatred and threats of violence that ultimately forced him to conclude that he could no longer serve in public office at this time,” he added.
Council President David Chittim. Image source: Lewiston City Council YouTube screenshot
Steve Robinson, the editor in chief of the Maine Wire, addressed city council members during the public comments section of Thursday’s meeting. He alleged that the Wire reporter, Jon Fetherston, had received threats and experienced intimidation due to his coverage of city council matters. Fetherston has been attending city council meetings and reporting on the claims against Osman.
“Earlier today, [Fetherston] had vehicles driving around threatening him, intimidating him, making gun hand gestures at him. So I would just like to know what is the city council going to do about issues like that, where someone who is conducting routine, basic journalism is facing threats of intimidation and gun violence,” Robinson stated.
Fetherson previously told Blaze News that it is “obvious” that Osman is lying about his residency.
“On the very first night of him being sworn in as a city councilor, Mr. Osman took the oath of office and swore to defend the Constitution, yet he then voted on the matter of whether the council should investigate his own residency instead of recusing himself, casting a ‘no’ vote,” Fetherston told Blaze News. “In my almost 40 years of elected office and/or reporting, I have never seen a bigger blow to democracy and disrespect of the election process than what has occurred with Iman Osman and how ‘leadership’ in Lewiston has handled this situation.”
When reached for comment, City Council President and Ward 6 Councilor David Chittim told Blaze News that members unanimously voted on Thursday to discontinue the investigation into Osman’s residency.
“His resignation effectively removed him from the council’s purview,” Chittim explained, adding that per the Lewiston City Charter, the city council is required to fill the vacancy by appointment.
When asked about the alleged harassment against a Maine Wire reporter, Chittim replied, “Last night the council heard allegations that a reporter for the Maine Wire has been harassed. I do not know how or whether the council will respond to these allegations.”
The city’s communications director and the mayor did not respond to a request for comment.
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2 devotees died during Traslacion 2026 – NCRPO
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USDA immediately suspends all federal funding to Minnesota amid fraud investigation
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