Drazkowski Statement Welcoming U.S. Treasury Investigation into Minnesota Fraud Dollars Being Diverted to Terrorist Groups Abroad

The United States Treasury Department will investigate accusations that Minnesota tax dollars stolen by fraudsters may be funding overseas terrorism, according to an announcement by Secretary Scott Bessent Monday. Senate Republicans had previously requested federal assistance to investigate these claims in a letter to the U.S. Attorney’s office. 

The letter reads in part:

“These fraud schemes not only undermine essential services intended for the elderly, disabled, and children, but also raise questions about oversight failures and the diversion of public funds to nefarious ends. We understand that traditional financial institutions may not work with hawalas, and families may have no other choice but to use questionable money transfer networks. However, it’s become clear that current efforts from state officials have been falling short for quite some time. They lack both the political will and the legal authority to investigate international financial crimes and terrorism.   

“As stewards of public trust and representatives of Minnesotans, we urge your office to initiate a comprehensive federal investigation into these matters to safeguard our state’s resources, protect vulnerable populations, and address potential national security implications. Federal agencies have better and proper resources and authority to investigate and prosecute these schemes that robbed hundreds of millions of dollars from Minnesotans but extend far beyond Minnesota’s borders.”

Senator Steve Drazkowski (R-Mazeppa) issued the following statement:

“The U.S. Treasury’s investigation is a welcome and necessary step. Minnesotans have waited far too long for a full accounting what happened with this stolen money. 

“This scrutiny should have started here at home, but it did not. Governor Walz has refused to confront the fraud inside his administration, and his lack of action allowed these schemes to grow far beyond anything this state has ever seen. He has ignored and deflected this crisis when it demanded urgent attention and accountability. Federal investigators are now stepping in because Gov. Tim Walz failed to protect the taxpayers of this state.”