BREAKING: Bessent and Kash Patel Announce Major Fraud Bust in Minnesota, Four Arrested In $41 Million Scheme

The Trump administration is turning up the heat on Minnesota's sprawling fraud problem, and federal investigators are making it clear that the days of treating taxpayer-funded programs like personal ATMs may finally be coming to an end.

Treasury Secretary Scott Bessent and FBI Director Kash Patel announced Friday that federal agents executed 17 search warrants across the Minneapolis area this week, resulting in four arrests tied to a 26-count indictment alleging massive Medicaid and social-services fraud, according to KSMP-TV.

Prosecutors allege the defendants attempted to siphon more than $41 million from programs established to help vulnerable Americans. Investigators estimate the actual losses at approximately $21.65 million.

The raids targeted child care centers, health care providers, and the homes of several business owners, as federal authorities began pulling back the curtain on another alleged multimillion-dollar fraud operation.

Patel identified the four individuals charged:

Feisal Elmi, of Aspen Associates, faces 11 counts of health care fraud and an alleged intended loss of approximately $8 million.

Jama Mohamod, of American Home Health Care, faces six counts of health care fraud involving an alleged $3.27 million intended loss.

Faiza Ahmed, of Home Sweet Home, faces eight counts of health care fraud with an alleged intended loss of $10 million.

Habiba Mohamed, of Smart Therapy, faces one count of conspiracy to defraud the United States involving nearly $20 million in “intended fraud and loss.”

Patel made clear that federal investigators are nowhere near finished. Rumor has it that Ilhan Omar [whatever he real name is] is shaking in her hijab.

“We’re going to continue manhunting fraudsters in every corner of the earth,” Patel declared.

“The FBI is following the money,” he added. “If you steal from the government or American taxpayers, justice will find you.”

Bessent, speaking at the announcement in St. Cloud, took aim at former Minnesota Gov. Tim Walz, whose administration has faced mounting scrutiny over the state's fraud scandals.

Bessent said industrial-scale fraud “shamefully, and perhaps knowingly,” was allowed to flourish under Walz's watch.

The Treasury secretary also highlighted the administration's broader efforts to root out fraud nationwide. Since January 2025, the administration has identified more than $260 billion in suspected fraud and blocked tens of billions of dollars annually from reaching improper recipients.

The Minnesota prosecutions, Bessent explained, are part of a broader “War on Fraud.”

Federal officials also pointed to findings from FinCEN, the Financial Crimes Enforcement Network, which identified more than $8 billion in suspicious foreign-directed wire transfers flowing through U.S. money-services businesses between 2021 and 2025.

In other words, investigators are increasingly finding that money supposedly earmarked for Americans in need was instead allegedly finding its way into private pockets or being shipped overseas.

Minnesota taxpayers have spent years watching one fraud scandal after another emerge from programs designed to help the most vulnerable. Now, with the FBI and Treasury Department pursuing the money trail, the question is how much more remains hidden and who else may eventually be held accountable.

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