Treasury Undersecretary John Hurley Steps Down Over White House’s Alleged Somali Fraud Crackdown

An official in the Treasury Department is leaving over his objections to the White House’s plans to crack down on fraud tied to people in Minnesota’s Somali immigrant community, sources said.

John Hurley, who serves as the undersecretary for terrorism and financial intelligence, had expressed concerns to Treasury Secretary Scott Bessent about an initiative to enhance federal monitoring of international payments from the Minneapolis area.

Hurley, a former hedge fund executive and decorated Army veteran who was a prominent donor to President Donald Trump’s reelection, denied the premise of the article. “Anyone who has told you I do not proudly support these ‘America First’ efforts is either uninformed or malicious,” Hurley, who was confirmed in July, said in a statement.

The Trump administration has made cracking down on fraud committed by Somali immigrants a top priority. In his State of the Union speech Tuesday, Trump charged that the Somali community in Minnesota pillaged billions of dollars. “This is the kind of corruption that shreds the fabric of a nation, and we are working on it like you wouldn’t believe,” Trump said in his speech.

“[Bessent] is under a lot of pressure from the White House to show some interim results,” a Trump ally said. “Trump needs something for 2026 on Somalia.”

Hurley reportedly disagreed with the approach the Treasury Department was taking to crack down on fraud and felt he was not a good fit for the role. One initiative includes requiring banks and other firms to collect additional information on payments of $3,000 or more going overseas, such as the physical address, email address, and birth date of the recipient.

Some employees objected, claiming it was a clumsy and inefficient way to root out fraud, viewing it as an overly partisan use of the department’s resources. Those concerns were shared by Hurley.

Hurley remains in good standing with the White House and is being considered for a top ambassadorial job in Europe. “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,” a senior administration official said.

A Treasury Department spokesperson defended Secretary Bessent’s efforts. “Secretary Bessent is working tirelessly to execute on President Trump’s agenda and safeguard American taxpayers from the crime and corruption enabled by the radical left,” the spokesperson said. “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.”