Deputy Attorney General Todd Blanche said Monday that federal investigators are uncovering what he described as a “massive underground fraud network” in Minneapolis — and he suggested the scrutiny intensified just as the political temperature spiked around ICE.
“We had a massive fraud going on all through Minneapolis, all through Minnesota, and suddenly it turned. It turned almost on a dime, and it became suddenly all about ICE, all about getting ICE out and how horrible ICE was doing,” Blanche said on Fox News.
Blanche said investigators faced “very strong pushback” when they tried to stop it — and added that “multiple investigations” are underway. He also emphasized the financial angle, saying the government is making progress tracing funding streams tied to the alleged network, but offered no names or specific sources.
“It’s not something we’re going to do overnight,” Blanche said, arguing it’s “not just [a] coincidence” when “massive numbers of protesters and rioters and agitators show up at the same time” and push back on what he described as “a profit center for fraudsters.”
The comments come amid intensified tensions between Immigration and Customs Enforcement and the public in Minneapolis following two high-profile fatal shootings involving federal agents — including ICU nurse Alex Pretti, whose death has prompted civil-rights scrutiny and a broader debate about how immigration operations are being conducted.
Federal officials say investigations are ongoing, and DHS has pledged to preserve evidence as the legal and political fight over accountability continues.
Watch the clip below:
🚨 BREAKING: Deputy AG Todd Blanche just confirmed there is an INTENTIONAL DISTRACTION going on in Minnesota
As soon as the fraud scandal blew up with Nick Shirley and others in Minnesota — "Suddenly, IT TURNED, on a dime, all about ICE."
"We have a massive underground fraud… pic.twitter.com/7HaKeWmvSi
— Eric Daugherty (@EricLDaugh) February 3, 2026
Deputy AG details 'massive underground fraud network' allegedly behind Minneapolis anti-ICE pushhttps://t.co/vCnivePbrZ
— Karoline Leavitt (@PressSec) February 3, 2026