Feds: 'No indication' Minnesota fraudsters were seeking to fund terrorists

MN fraud money: No indication it went to support terrorist group

First Assistant U.S. Attorney Joseph H. Thompson on Thursday said there is no indication the suspects who are accused of defrauding Minnesota programs funneled the money to support terrorist groups. 

MINNEAPOLIS (FOX 9) - Federal authorities say they have not found any evidence of defrauded taxpayer funds being sent to terrorist groups, but add that it's possible some money may have fallen into the hands of al-Shabab, which controls parts of Somalia.

This assessment was shared during a news conference in Minneapolis where more charges related to defrauding Medicaid programs in Minnesota were announced. 

READ MORE: Minnesota fraud investigation: Treasury probes terror funding links

Minnesota fraud charges

What they're saying:

First Assistant U.S. Attorney Joseph H. Thompson said his team has not uncovered anything that shows money defrauded from state and federal programs were used to fund terrorism.

"There’s no indication that the defendants we've charged were radicalized or seeking to fund al-Shabab or other terrorist groups," said First Assistant U.S. Attorney Joseph H. Thompson. "Some money went to Somalia indirectly. Some money might have gotten into the hands of al-Shabab, which controls significant parts of Somalia and imposes a tax there. So that's a little more nuanced. There's no indication that defendants have been sending money to terrorist organizations or were supporting terrorist organizations in that way. "

A treasury department investigation is also probing potential links between local fraudsters and terrorism funding, which Minnesota Gov. Walz says he "welcomes."

FOX 9 investigated similar claims in 2018, when large sums of cash were tracked leaving Minneapolis-St. Paul International Airport for Kenya and Somalia. 

READ MORE: How defrauded Minnesota tax dollars can end up with terror groups

Federal response

Trump addresses nation, attacks Somalis in MN

President Donald Trump on Wednesday addressed the nation, promising an economic boom and touting his immigration policies, while also once again attacking Somalis in Minnesota.

The backstory:

U.S. Treasury Secretary Scott Bessent stated that the probe aims to uncover whether Minnesotans' tax dollars have been diverted to a terrorist organization.

A social media post from Secretary Bessent said "At my direction, U.S. Treasury is investigating allegations that under the feckless mismanagement of the Biden Administration and Governor Tim Walz, hardworking Minnesotans’ tax dollars may have been diverted to the terrorist organization Al-Shabaab. Thanks to the leadership of [President Donald Trump], we are acting fast to ensure Americans’ taxes are not funding acts of global terror. We will share our findings as our investigation continues."