Rufo & Lomez Exclusive: Treasury Secretary Scott Bessent on The Somali Fraud Investigation
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Jan 10, 2026 Scott Bessent, former Treasury Secretary under Trump, dives deep into the shocking Somali fraud investigation. He highlights how Minnesota serves as a model for exposing fraud and the importance of methodical investigations. Bessent critiques local officials for suppressing the truth, discusses weak penalties encouraging fraud, and reveals plans for enhanced IRS enforcement. He also emphasizes the need to scrutinize funding for protest groups and reassures young people about a promising economic future. This candid discussion uncovers the layers of complexity in federal fraud enforcement.
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Minnesota As A Fraud Microcosm
- Scott Bessent says Minnesota exposes systemic fraud where benefits were turned into businesses and money leaked abroad.
- Treasury will "follow the money" using methods proven against mafia and cartels to recover assets.
Weak Penalties Created Perverse Incentives
- Bessent argues incentives enabled large-scale theft because penalties were weak under Minnesota law.
- He warns IRS enforcement will be used to remove the reward from fraud and force accountability.
An Open Secret In Minnesota
- Christopher Rufo recounts the Somali community's outsized role and local political reluctance to confront it.
- Bessent and Rufo describe the story as an "open secret" suppressed by local media and officials.