Politics
JUST IN: DOJ Announces New Office To Handle Nationwide Fraud Probes
Vice President JD Vance announced during a White House press briefing Thursday that a new office will be formed within the Justice Department to investigate the explosion of public welfare fraud allegations nationwide.
The new assistant attorney general position will have nationwide jurisdiction to investigate and prosecute fraud, with an initial focus on large-scale cases like those in Minnesota involving welfare programs and alleged schemes tied to illegal aliens.
Vance described it as having the authority of a special counsel and said it would operate directly under oversight from the White House and Trump administration. He emphasized prosecuting “anybody involved” in what he called a “nationwide fraud ring” rooted in welfare abuse.
A nominee for the position has not yet been announced, though a decision is expected in the coming days. Vance added that he had spoken with Senate Majority Leader John Thune (R-SD), who committed to a swift confirmation process.
The announcement comes as fraud involving Minnesota’s public welfare sector has generated national headlines.
The fraud scandals in Minnesota primarily stem from the Feeding Our Future case, a nonprofit accused of stealing approximately $250 million from a federal child nutrition program during the COVID-19 pandemic by submitting false claims for meals that were never served. As of late 2025, federal authorities have charged 78 individuals in this scheme alone, with over 50 pleading guilty and several convicted at trial, including the organization’s founder.
Many of those charged are of Minnesota’s Somali community, which is the nation’s largest.
Broader investigations have expanded to 14 programs administered by the state, including Medicaid-funded services. Federal prosecutors have issued preliminary estimates suggesting that half or more of roughly $18 billion spent on these programs since 2018 may have been fraudulent, potentially totaling $9 billion or more in losses.
“Minnesota is ground zero for what may be the most egregious welfare scam in our nation’s history to date,” Treasury Secretary Scott Bessent said while speaking in Minneapolis today. “I am here this week to signal the U.S. Treasury’s unwavering commitment to recovering stolen funds, prosecuting fraudulent criminals, preventing scandals like this from ever happening again, and investigating similar schemes state by state.”
Nationwide, fraud cases in 2024-2026 have spanned healthcare, investments, and government aid, with reported losses reaching unprecedented levels. The FTC documented over $12.5 billion in consumer fraud losses in 2024 alone, a 25 percent increase from the prior year, driven primarily by investment scams ($5.7 billion) and imposter schemes ($2.95 billion), often involving bank transfers or cryptocurrency.
Healthcare fraud dominated enforcement actions, including a 2024 DOJ crackdown charging 193 people in schemes worth $2.75 billion, such as unnecessary wound grafts and pharmacy kickbacks, and a record 2025 takedown with 324 defendants and $14.6 billion in losses across telemedicine, opioid distribution, and Medicare billing fraud.
Ongoing PPP loan fraud from the pandemic era continues, alongside elder abuse scams totaling $3.4 billion in 2024, reflecting a broader trend of sophisticated digital and kickback-driven schemes exploiting federal programs.
All told, Bessent estimated that total fraud losses could top $600 billion, roughly 10 percent of total spending.
🚨 HOLY CRAP. Sec. Scott Bessent just confirmed up to $600 BILLION of annual fraud with taxpayer dollars, nearly 10% of spending
Elon Musk called it!
END ALL FRAUD.
"We are going to hold people accountable. We're going to press this to the full extent possible…American… pic.twitter.com/E2njwKalG7
— Eric Daugherty (@EricLDaugh) January 8, 2026
