Bessent Launches Full Probe Into MN’s Ghost Child Care Fraud Empire [WATCH]

Treasury Secretary Scott Bessent said President Donald Trump has directed his administration to restore accountability in Minnesota as federal investigators examine widespread welfare fraud that he said diverted taxpayer dollars away from vulnerable Americans and into the hands of fraudsters, including non-citizens.

Bessent said the Trump administration is focused on ensuring federal funds are used for their intended purposes and not misused through fraud schemes that undermine public trust and national security.

“President Trump is committed to restoring accountability, to put Minnesota back on the right track under President Trump’s leadership, the entire administration is focused on delivering results for the American people,” Bessent said.

According to Bessent, the administration’s concerns center on the misuse of welfare funds meant to support children, seniors, and individuals with special needs. He said taxpayers deserve transparency and assurances that their money is not being misdirected.

“Our citizens have a right to know that their tax dollars are not being diverted to fund acts of global terror or to fund luxury cars for fraudsters,” Bessent said.

Bessent placed blame on Minnesota’s Democratic leadership, specifically Governor Tim Walz, accusing the state government of failing to prevent fraud within its welfare programs.

He said the lack of oversight allowed abuse to escalate to unprecedented levels.

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“Democratic Governor Tim Walz has allowed welfare programs and fraud to spiral, spiral out of control, out of control,” Bessent said.

He said the consequences of that failure were severe, with billions of dollars allegedly redirected away from essential services and into fraudulent operations.

“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,” Bessent said.

Bessent added that some of the individuals who benefited from the alleged fraud were not U.S. citizens, raising additional concerns about oversight and eligibility enforcement.

“Some of whom are not even American citizens,” he said.

The Treasury Department, Bessent said, is actively investigating how the funds were misappropriated and where the money ultimately went.

He highlighted particular concern over funds transferred overseas through informal financial networks.

“At Treasury, we are thoroughly investigating the fraud, including funds sent to Somalia through money service businesses which provide financial services outside of a formal bank,” Bessent said.

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