Key Prosecutor in Minnesota Welfare Fraud Case Steps Down as Trump Administration Expands Crackdown

[Photo Credit: By Jeffrey Beall - Own work, CC BY 3.0, https://commons.wikimedia.org/w/index.php?curid=26862017]

A senior federal prosecutor who played a central role in exposing Minnesota’s massive welfare fraud scandal reportedly resigned Tuesday, a move that comes as the Trump administration intensifies its broader effort to root out additional fraud in the state.

Joseph Thompson, the second-ranking official at the U.S. Attorney’s Office in Minnesota, announced his resignation in an email without offering an explanation, according to the Minnesota Star Tribune. Thompson became widely known as the lead prosecutor in the Feeding Our Future case, a sweeping investigation that resulted in more than 50 guilty pleas and seven convictions tied to one of the largest fraud schemes in state history.

Thompson was appointed by President Donald Trump last May to serve as acting U.S. attorney for Minnesota before Daniel Rosen took over the top job in October. In his farewell message, Thompson wrote that it had been an honor and a privilege to represent the United States and serve in the office.

His departure was not the only one announced Tuesday. Two other prosecutors involved in the Feeding Our Future case also revealed plans to leave. Assistant U.S. Attorney Harry Jacobs, who worked alongside Thompson on the case, and Assistant U.S. Attorney Melinda Williams both said they are stepping down from their posts.

The timing of Thompson’s resignation has fueled speculation in Washington. He has been mentioned as a potential candidate for a new Justice Department role focused on combating fraud. The position was announced last week by Vice President JD Vance, who said the office’s work would begin with a strong focus on Minnesota.

It remains unclear whether Thompson’s exit is connected to his possible candidacy for that post. However, The New York Times reported that people familiar with the situation said Thompson resigned following disagreements with the Justice Department over its handling of a separate investigation involving the wife of Renee Good, the Minneapolis woman fatally shot by a federal agent last week. According to the report, Thompson opposed both the department’s investigative strategy and its decision to exclude state authorities from the probe.

The Justice Department has not said whether the resignation is tied to that case. A DOJ official told The Daily that officer-involved shootings follow established internal protocols across agencies, including the Department of Homeland Security, with ICE’s Office of Professional Responsibility conducting its own investigation alongside any FBI review.

Minneapolis Police Chief Brian O’Hara questioned the timing of Thompson’s departure, suggesting it casts doubt on the administration’s stated rationale for increasing the federal law enforcement and immigration presence in Minnesota. O’Hara said losing the prosecutor responsible for pursuing major fraud cases raises questions about whether the surge is truly about accountability.

Thompson’s work on the Feeding Our Future case had already put Minnesota under a national microscope. That investigation uncovered widespread abuse of pandemic-era aid programs and brought renewed scrutiny to additional allegations of fraud in the Minneapolis area. Most of those charged in the Feeding Our Future case were of Somali descent, and the Trump administration has since begun examining claims of fraud involving Somali-run businesses and daycares.

As part of that effort, federal immigration enforcement agents have been deployed across the Twin Cities. With Thompson now gone, his resignation marks a turning point as the administration presses forward with a tougher stance on fraud and enforcement in Minnesota, even as questions swirl about internal disagreements and the future direction of high-profile investigations.