(ZeroHedge)—On the heels of all that Somali fraud in Minnesota, the US Treasury Department on Friday launched a new portal where people can report suspected fraud, money laundering and sanctions violations.
According to officials, tips should be submitted with supporting documents. “FinCEN’s Office of the Whistleblower is accepting tips involving violations and conspiracies related to the Bank Secrecy Act, U.S. sanctions programs, and several other laws critical to safeguarding the U.S. financial system and national security. ”
Individuals who voluntarily provide information about such violations or conspiracies to commit violations may be eligible for awards if the information they provide leads to a successful enforcement action by the Department of the Treasury (Treasury) or the Department of Justice (DOJ) that results in monetary penalties exceeding $1,000,000, and the requirements in 31 U.S.C. § 5323 and its implementing regulation are otherwise met. A copy of the statute is available here. -FINCEN
How much are we talking about? Between 10-30% “of what has been collected of the monetary sanctions imposed in the action or related actions,” and it’s got to be north of $1 million.
“President Trump has been clear that Americans 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,” Treasury Secretary Scott Bessent said, adding that whistleblowers may receive financial rewards.
“At Treasury, we follow the money. We did it with the mafia, we have done it with the cartels, and we’re doing it with the Somali fraudsters,” he added. “We are going to offer whistleblower payments to anyone who wants to tell us the who, what, when, where, and how this fraud and money laundering has occurred.”
Bessent told CNBC’s “Squawk Box” “It’s going to be a great way to ferret out waste, fraud and abuse,” adding “We’re setting up a website and we will be giving rewards up to 10% to 30% of the fines that we levy.”
Minnesota has seen a series of large-scale fraud schemes targeting state-administered federal programs, including child nutrition (Feeding Our Future), housing stabilization services, autism/early intervention (EIDBI), and other Medicaid-funded services. The largest single case, Feeding Our Future, involved a $250 million COVID-era scam where largely Somalian defendants submitted fake meal claims and invoices for nonexistent food distribution, with proceeds funding luxury purchases, real estate, and overseas transfers.
Wider probes into 14 high-risk Medicaid programs (totaling ~$18 billion spent since 2018) estimate that half or more may be fraudulent, pushing overall losses potentially into the billions; additional schemes in personal care assistance, home/community-based services, and substance-use programs have added hundreds of millions more. Many operations involved Somali-run nonprofits, providers, or shell companies that billed for undelivered or fabricated services, though the Feeding Our Future “mastermind” (Aimee Bock) was not Somali. Suspected fraud has extended to child-care/daycare centers (sparked by a late-2025 viral video alleging $30–100 million in overbilling) and other providers, prompting active FBI/DOJ investigations into dozens of centers.
Meanwhile, the Trump administration has focused on Minnesota Governor Tim Walz and his state, including its Somali community of up to 80,000 – alleging fraud dating to 2020 by some nonprofit groups which were backed by federal programs administering the state’s childcare and other social services programs.
The IRS is also launching a dedicated fraud task force focused on targeting the misuse of funding by 501(c)(3) tax-exempt entities, Reuters reports.
