Treasury Secretary announces cash rewards for whistleblowers of fraud in Minnesota

Treasury Secretary announces cash rewards for whistleblowers of fraud in Minnesota

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Whistleblowers who come forward with information about Minnesota’s massive fraud scandal will receive cash payments, U.S. Treasury Secretary Scott Bessent told Fox News on Friday.

The Trump administration launched a massive fraud investigation in Minnesota amid a growing web of allegations of money laundering and misuse of taxpayer funds.

“We know these rats are going to turn on each other,” Bessent told “The Ingraham Angle.”

“We’re going to offer whistleblower payments to anyone who will tell us who, what, when, where and how this fraud was committed. I think this will give us a big step forward in how we can get this done,” he added.

CRITICS WARN MINNESOTA LEGISLATION NOW GOING INTO EFFECT WILL CREATE THE ‘NEXT BILLION-DOLLAR FRAUD’

Minnesota’s Quality Learning Center was at the center of an alleged child care fraud scandal in the state. (Madelin Fuerste/Fox News Channel)

Several Minnesota child care and food distribution facilities have been accused of misusing federal funds, while a recent audit found corruption linked to taxpayer-funded grant programs.

The child care and food distribution sites allegedly did not provide child care or serve food, but instead used the federal funds they received to launder money.

Nick Shirley at a daycare in Minnesota

Nick Shirley turned the news cycle on its head last month with a 42-minute video investigating Minnesota daycares that appeared inactive despite receiving millions of dollars in government funding. (Nick Shirley)

A state audit found there was limited oversight of grant programs within the Department of Human Services’ Behavioral Health Administration, which distributed hundreds of millions of dollars in federal funding to mental health and addiction services.

The Trump administration has frozen multiple federal funding streams to Minnesota, including certain funding from the Department of Health and Human Services and the U.S. Department of Agriculture.

However, a federal judge on Friday temporarily blocked the Trump administration from freezing about $10 billion in federal funding to five Democratic-led states.

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Federal agents question a man in Minneapolis

Homeland Security investigators were part of a fraud investigation in Minneapolis following the release of a video alleging child care fraud. (Department of Homeland Security)

Bessent said the fraud continues, pointing to a recent finding in which a convicted fraudster allegedly tried to bribe a juror.

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“One of the people convicted of fraud was given $200,000 to bribe a juror,” he explained. “And she was so corrupt that she skimmed off $80,000 and only tried to bribe $120,000.”

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