Treasury chief calls Minnesota fraud 'ground zero' at St. Cloud briefing

U.S. Treasury Secretary Scott Bessent labeled Minnesota the "ground zero" for fraud on Friday, Oct. 30, during a federal press conference in St. Cloud. The briefing took place in a large conference room on the first floor of the St. Cloud Police Department building.

Bessent, FBI Director Kash Patel, and other administration officials outlined the "War on Fraud" agenda. They detailed recent indictments, recovered funds, and new coordination efforts among federal agencies. A central announcement was a whistleblower incentive program, previously announced by President Donald Trump in Washington the prior week. Individuals who submit tips leading to a conviction or enforcement action will receive up to $30,000.

Officials criticized the state government's handling of the issue. Bessent stated that Gov. Tim Walz’s administration "turned a blind eye" to fraud. He added that the state became negligent while Minnesotans were being defrauded. Bessent noted that the local U.S. assistant attorney suggested the St. Cloud venue, but the administration remains "very interested" in the region's activities.

The housing stabilization services program, created in 2020, was a primary target of the officials' criticism. The program aimed to help vulnerable people secure housing but was shut down in 2025. Centers for Medicare and Medicaid Services Administrator Mehmet Oz cited the case of Sharmaine Meadows of Lake Elmo. She was recently convicted of defrauding the program out of $3.6 million. Oz said Meadows billed an unreasonable number of hours for an impossible volume of services and should have been caught sooner.

FBI Director Kash Patel highlighted recent enforcement actions. He referenced raids in Minneapolis on Thursday, Oct. 29, connected to a 26-indictment Medicare fraud investigation. Agents also captured four individuals internationally who were on the FBI’s Most Wanted Fraudsters list. Patel stated the agency is committed to putting anyone who commits fraud against an American citizen in prison.

Vice President JD Vance was originally scheduled to headline the event but withdrew on Thursday, Oct. 29. U.S. Assistant Attorney General for the National Fraud Enforcement Division Colin McDonald and Federal Trade Commission Chairman Andrew Ferguson also spoke. Bessent said he visited Minnesota in January to deploy every tool to end what he called egregious, unchecked fraud.

The briefing occurred one day after U.S. Senate Democrats released a report. The report accused the Centers for Medicare & Medicaid Services of targeting blue states in fraud investigations. Bessent rejected the idea of intentional targeting, arguing that Democratic states typically lack sufficient oversight. He described the guardrails in those states as the loosest.