FBI & DHS Swarm Minnesota in Explosive Fraud Crackdown
Federal agents seized cash, crypto kiosks and luxury cars in a dawn raid targeting a $37 million Minnesota fraud ring tied to pandemic relief.
Agents Descend on Twin Cities Before Dawn
ST. PAUL—The first knock came at 4:47 a.m. By sunrise, more than 200 federal agents had fanned across Minneapolis and St. Paul, executing warrants at 38 properties tied to what investigators describe as a sprawling fraud network that siphoned at least $37 million from pandemic-relief programs.
“We’re sending a clear message: if you stole from the American people, your zip code won’t protect you,” said FBI Minneapolis Special Agent in Charge, Douglas K. Malloy.
From Luxury Condos to Suburban Warehouses
Affidavits unsealed Tuesday allege that ringleaders used shell companies, fake payroll records and stolen identities to obtain PPP and unemployment benefits, then laundered proceeds through cryptocurrency kiosks and high-end real estate. Agents seized a Tesla Model X, $2.3 million in cash stuffed in vacuum-sealed bags, and 11 gold bars stamped with Swiss hallmarks.
Local Businesses Caught in Crossfire
On Lake Street, café owner Rosa Jimenez watched agents cordon off the vacant storefront next door. “We just got back on our feet after the riots. Now customers think we’re part of the scam,” she said, wiping down tables that sat empty during the lunch rush.
What Happens Next
- Seventeen suspects face federal charges ranging from wire fraud to money laundering; nine remain at large.
- Congressional panel requests briefings on how fraudsters bypassed identity-verification safeguards.
- State lawmakers pledge tougher oversight of relief-fund distribution.
As dusk settled, agents hauled boxes of evidence into waiting vans while neighbors filmed on phones. The crackdown, officials insist, is only the opening chapter. “This isn’t a finish line—it’s a starting gun,” Malloy said.