The FBI and the U.S. Treasury dismantled a fraud network in Minnesota backed by the Democratic Party

The Treasury Secretary, Scott Bessent, and the FBI Director, Kash Patel, announced this Friday that 17 search warrants were executed in the Minneapolis area during the week. The operation resulted in four arrests and a formal indictment of 26 charges alleging large-scale fraud in Medicaid and social services programs.

Prosecutors noted that the defendants attempted to divert more than 41 million dollars from programs intended to help vulnerable individuals. Investigators estimate that the actual losses amount to about 21.65 million dollars and targeted childcare centers, healthcare providers, and the residences of some of the owners.

The four indicted individuals are: Feisal Elmi, who faces 11 charges of healthcare fraud and is accused of stealing 8 million dollars; Jama Mohamod, who faces six charges for a loss of 3.27 million dollars; Faiza Ahmed, who faces eight charges of fraud for 10 million dollars; and Habiba Mohamed, accused of conspiring to defraud the U.S. for an amount totaling 20 million dollars.

"We will continue to hunt down fraudsters in every corner of the planet," Patel stated. "The FBI is tracking the money. If you steal from the government or American taxpayers, justice will find you," he added. Bessent, for his part, indicated that the scale of the fraud could not have gone unnoticed by the Democratic governor of Minnesota, Tim Walz, who allowed this illegal practice to grow under his administration.

Bessent noted that, since January 2025, the Trump administration has identified more than 260 billion dollars in fraud nationwide and has blocked tens of billions of dollars each year to prevent them from reaching improper recipients.

Authorities also pointed to findings from FinCEN (the Financial Crimes Enforcement Network) regarding more than 8 billion dollars in suspicious bank transfers directed abroad that passed through U.S. money services businesses between 2021 and 2025.