Minnesota fraud investigation: Treasury probes terror funding links

(FOX 9) - The federal government is turning its attention to Minnesota as the U.S. Treasury Department investigates potential links between local fraudsters and terrorism funding.

Federal investigation into fraud and terrorism

What we know:

Federal investigators are searching for evidence that funds from Minnesota fraudsters have been directed to Al-Shabab, a terrorist organization based in Somalia. This investigation aligns with ongoing efforts to trace money laundering activities with potential ties to terrorism.

Gov. Tim Walz expressed openness to the investigation, on Tuesday stating, "If they want to help us, I welcome that. I think they do an investigation, find out, but I don't think anybody in here really believes their motive and their timing is about actually doing something about this."

Political perspectives and historical context

What they're saying:

Sen. Jordan Rasmusson emphasized the importance of the investigation, saying, "The scope of human services fraud in Minnesota has expanded exponentially. And so, that's why I'm glad that the federal government with their international money laundering terrorism expertise is going to be taking a look to see if these dollars are either directly or indirectly going to fund Al-Shabab."

The backstory:

Since 2015, investigators have suspected that some proceeds from fraud might have reached terrorist groups, though direct links to Al-Shabab remain unconfirmed.

Previous investigations have connected recent fraud proceeds to real estate transactions in Kenya.

Federal prosecutors have also charged defendants with alleged ties to Al-Shabab, but their targets were also not involved in fraud.

What we don't know:

Investigators have not yet disclosed any direct evidence linking Minnesota fraud proceeds to Al-Shabab.

An investigation continues as authorities seek to uncover any potential connections.