U.S. Federal Authorities Target Long-Running Fraud Operation in Minnesota

A senior adviser to U.S. Customs and Border Protection described a years-old, organized fraud operation flourishing in Minnesota as evidence of what he called “a pipeline for the left” and “potentially for terrorists.” Ron Vitiello, speaking on Newsmax’s “Rob Schmitt Tonight,” stated federal authorities are employing a “whole of government” approach to confront the scheme. He noted public records and court cases linked to the fraud date back to at least 2017.

“This is a long-term problem,” Vitiello said. “It is, in fact, organized crime committed at the hands of people who came into the country undervetted or not vetted at all and crossed illegally.”

The adviser explained that suspected fraudsters have exploited government programs intended to assist vulnerable communities. Vitiello emphasized the issue extends beyond Minnesota: “I don’t think it’s unique to Minnesota. But now they have the attention of every American citizen, anybody that’s paying attention.”

Federal agencies are intensifying efforts as investigations deepen. The Department of Health and Human Services has suspended child care payments for certain recipients, while the FBI and Department of Justice conduct criminal probes. The Small Business Administration has halted loans tied to suspected fraud, and immigration enforcement operations—including in-person visits—are underway with the Department of Homeland Security and Immigration and Customs Enforcement.

Vitiello stated that the administration is pursuing investigations across both Congress and the executive branch. “Every level is digging into the safety net they provide,” he said. “They’re going to find out where all those dollars are and hold people to account.”

The enforcement strategy includes immigration actions, such as reviewing cases involving Somali U.S. citizens for possible denaturalization if citizenship was obtained fraudulently. DHS Assistant Secretary Tricia McLaughlin confirmed U.S. law permits revoking citizenship when procured under false pretenses.

“That is the plan,” Vitiello added, describing the efforts as a “whole of government” approach. He noted that individuals convicted of fraud will face prosecution, while those found to be in the country illegally or who lied about their status “are going to be sent back.”