NEW: Trump Admin To Offer Whistleblower Rewards For Information On Minnesota Fraud

U.S. Treasury Secretary Scott Bessent has introduced a program offering financial rewards to individuals who provide information on fraud in Minnesota’s government benefits programs.

The announcement aims to encourage whistleblowers to share details that could assist ongoing investigations into the misuse of public funds. This initiative is part of broader efforts by the federal government to address financial irregularities in the state.

“We are going to offer whistleblower payments to anyone who wants to tell us the who, what, when, where and how this fraud has been done,” Bessent told Fox News.

The update comes as the administration has surged federal resources to the state to crack down on fraud and illegal immigration. Rewards are intended to cover information related to various aspects of the fraud, including participants, methods, and timelines.

Federal authorities have indicated that such incentives have proven effective in similar cases by prompting individuals to come forward with evidence that might otherwise remain undisclosed.

Beesent has been actively engaged in Minnesota over the last several days.  On Friday, he visited the state to announce several initiatives aimed at combating government benefits fraud. These measures include increased transparency requirements and efforts to hold accountable those responsible for the loss of taxpayer dollars.

During his visit, Bessent participated in a roundtable discussion with affected citizens to gather firsthand accounts of the impact of the fraud. He also chaired a public-private partnership meeting involving financial institutions, as well as federal, state, and local law enforcement agencies.

The purpose of this meeting was to facilitate the sharing of information that could help identify, report, and investigate instances of fraud. Additionally, Bessent extended an invitation to Minnesota Governor Tim Walz to meet in Washington, D.C., to discuss the matter further.

Fraud in Minnesota encompasses a series of schemes primarily involving federal and state-funded programs for child nutrition, childcare assistance, and Medicaid. Investigations have revealed that fraudulent organizations submitted false claims for reimbursements, often inflating the number of beneficiaries or creating fictitious entities to siphon funds.

One notable case, known as the Feeding Our Future scandal, involved the alleged theft of over $250 million in federal child nutrition funds during the COVID-19 pandemic. Prosecutors have charged dozens of individuals, with more than 50 convictions already secured, but estimates suggest the total losses across multiple programs could exceed $9 billion.

Much of the fraud stems from providers submitting inaccurate claims, leading to improper payments from programs like Medicaid and Medicare. Federal probes, ongoing since 2022, have resulted in several arrests, highlighting systemic vulnerabilities in program oversight.

Whistleblowers have played a key role, providing evidence of misuse, though some have reported facing retaliation or threats for their disclosures.

Other relevant details include the involvement of the U.S. Department of Justice and the Office of Inspector General for the Department of Health and Human Services in the investigations. Reports indicate that some of the misappropriated funds may have been laundered through shell companies or used for personal gain, such as bribes or luxury purchases.

The Treasury Department’s new enforcement measures, announced by Bessent, position Minnesota as a starting point for similar probes in other states, with a commitment to leave no aspect unexamined.