John Hurley Steps Down as U.S. Treasury Official Over White House’s Plan to Target Minnesota Somali Community Fraud Allegations

John Hurley, the undersecretary for terrorism and financial intelligence at the U.S. Treasury Department, has stepped down after raising concerns about the administration’s proposed crackdown on alleged fraud by Minnesota’s Somali immigrant community.

A former hedge fund executive and decorated Army veteran who donated to President Donald Trump during his 2016 reelection campaign, Hurley denied reports that he opposed the initiative. In a statement, he asserted: “Anyone who has told you I do not proudly support these ‘America First’ efforts is either uninformed or malicious.”

The Trump administration has prioritized targeting fraud committed by Somali immigrants. During his State of the Union address on Tuesday, President Trump accused the community in Minnesota of embezzling billions of dollars, stating: “This is the kind of corruption that shreds the fabric of a nation — we are working on it like you wouldn’t believe.”

A Trump administration official noted Treasury Secretary Scott Bessent faces significant pressure to demonstrate progress on Somalia-related matters ahead of 2026.

Hurley reportedly disagreed with the Treasury Department’s approach to combating fraud, stating he was not a good fit for his role. The initiative requires financial institutions to collect additional information—including physical addresses, email addresses, and birth dates—for international payments exceeding $3,000. Some Treasury employees raised concerns that the measure would be an inefficient and overly partisan use of resources, a view shared by Hurley.

Despite the controversy, Hurley remains in good standing with the White House and is reportedly being considered for a top ambassadorial position in Europe. A senior administration official confirmed: “John Hurley is in discussions with the White House for an important new role in which we expect he will continue to faithfully serve in the Trump administration.”

The Treasury Department defended Secretary Bessent’s efforts, stating he is working tirelessly to implement President Trump’s agenda and protect American taxpayers from financial crime. A spokesperson added: “The United States Treasury is committed to stamping out the rampant Somali fraud occurring in Minnesota as well as all other financial fraud across America.”