$350M stolen from Minnesota meal program. 79 defendants. Fraud visible in public records from day one. DOJ 2025: $15 billion in fraud charges. Largest single year total on record. GAO: Up to $521 billion lost annually to government fraud. Data to catch it is public. 847 high-risk anomalies detected this week. Updated daily from federal spending databases. Dissolved company in Baton Rouge continued billing Medicaid for 14 months after shutting down. Seven companies at one Minneapolis address received $2.8M in childcare assistance. $350M stolen from Minnesota meal program. 79 defendants. Fraud visible in public records from day one. DOJ 2025: $15 billion in fraud charges. Largest single year total on record. GAO: Up to $521 billion lost annually to government fraud. Data to catch it is public. 847 high-risk anomalies detected this week. Updated daily from federal spending databases. Dissolved company in Baton Rouge continued billing Medicaid for 14 months after shutting down. Seven companies at one Minneapolis address received $2.8M in childcare assistance.
Live Federal Fraud Intelligence

The money
always leaves
a trail.

Arcane Tracer monitors $2.1 trillion in federal spending and maps financial networks in real time, surfacing fraud risk before investigators know where to look.

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$2.1T
Federal spending monitored
847
Anomalies this week
50+
Public data sources
100%
Public data only
100% public data only
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Every claim sourced and cited
Analysis — never accusation
Updated daily
Free for every citizen
Federal Spending Monitored
$2.1T
Arcane Tracer monitors the full scope of federal spending reported through USASpending.gov — contracts, grants, loans, and direct payments across all 11 federal agencies.
Source: USASpending.gov DATA Act reporting
GAO documented fraud rate
20%
of federal spending is estimated to be fraudulent, according to Congressional testimony from fraud detection experts.
Source: House DOGE Subcommittee, 2025
Estimated Annual Fraud Exposure
~$420B
Applying the GAO's documented 20% fraud rate to the spending we monitor suggests approximately $420 billion in annual exposure — money that may be going to fraudulent claims, shell companies, and bad actors.
Estimate based on GAO reporting · Not a confirmed fraud total
The Problem

Fraud is at an all-time high

The data to catch government fraud has always been public. The tool to connect it automatically has not existed until now.

$521B
Maximum Annual Fraud Loss
The GAO estimates between $233 billion and $521 billion is lost annually to fraud in federal programs. Medicare, Medicaid, and government assistance programs are the most exposed. This is taxpayer money that should be funding real services for real people.
Source: Government Accountability Office, 2025
20%
Government Fraud Rate
Expert testimony to Congress documented the federal fraud rate at approximately 20% compared to just 3% in the private sector. The difference is simple: private companies use automated detection. Most federal agencies do not have the tools to do this automatically.
Source: House DOGE Subcommittee Testimony, 2025
$350M
One State. One Program.
The Feeding Our Future scandal in Minnesota stole $350 million from a single federal meal program. It ran for three years before investigators manually mapped the network. Every public record needed to catch it was available from day one. No automated tool was in place to connect them.
Source: DOJ USAO-MN, 2025
How We Score Risk

What the warning signs
actually mean

When Arcane Tracer flags an entity, it shows specific risk signals in plain English. Here is what each signal means, why it matters, and what it tells investigators to look at next. Hover over any badge in the feed above to see the explanation inline.

High Risk
Very New Company
This entity was incorporated within the last 6 months and is already receiving large federal payments.
Legitimate businesses receiving millions in government funds typically have years of operating history, staff, facilities, and a track record. A brand new company receiving large amounts immediately suggests it may have been created specifically to capture government funds before proper vetting could occur. The Feeding Our Future case involved dozens of LLCs created within weeks of a new program opening.
High Risk
Registered Agent Manages Hundreds of Entities
The legal contact on file for this company is also the registered agent for hundreds of other companies in the same space.
A registered agent is the official legal representative of a company. When one agent manages hundreds of companies that all receive similar government payments, it strongly suggests these companies were mass-created in coordination rather than independently built. In the Minnesota case, a single registered agent was connected to over 40 shell entities that collectively defrauded the government of tens of millions.
High Risk
Multiple Companies at One Address
Several companies receiving government payments are all legally registered at the exact same physical address.
While legitimate businesses sometimes share office space, having many companies all receiving similar government payments from one address is a known fraud indicator. It suggests the companies are not truly independent operations but a cluster of entities set up to claim funds from the same program. Seven entities at one Minneapolis address collectively received $2.8 million in childcare assistance.
High Risk
Company Is Dissolved but Still Billing
State records show this company was legally dissolved, meaning it no longer officially exists, but federal payments are still being made to it.
When a company is dissolved by the state it has no legal standing to operate, employ people, or provide services. Payments continuing to a dissolved entity indicate either a billing system failure — which is serious on its own — or that someone is actively submitting fraudulent claims on behalf of a company that technically no longer exists. Both require immediate investigation.
Elevated Risk
Connected to OFAC-Listed Entities
This company shares officers, addresses, or registered agents with entities on the US Treasury's OFAC sanctions list.
The OFAC Specially Designated Nationals list names individuals and companies sanctioned for financial crimes, money laundering, narcotics trafficking, and terrorism financing. A company is not itself sanctioned for having connections to OFAC entities, but those connections are required to be disclosed and evaluated. For compliance officers, this flag triggers mandatory enhanced due diligence under federal regulations.
Elevated Risk
Coordinated Incorporation Window
Multiple companies in this cluster were all legally formed within a very short period, typically 30 to 90 days, right before a government program opened for applications.
Independent businesses form organically over time based on market opportunities. When multiple companies serving the same government program all appear within weeks of each other, it suggests they were created in response to that specific program. This is the defining pattern of large-scale government benefit fraud — rapid entity creation timed to capture new funding streams before oversight systems are in place.
Notable
No Prior Government Contracts
This company has never previously received any federal money. Their very first interaction with the government is a large payment.
This flag by itself is not necessarily suspicious — every business has a first contract. But when combined with other signals like very new incorporation or a shared registered agent, having no prior contract history means there is no track record to evaluate whether this company has ever actually delivered what it claims to provide. It means due diligence must start from scratch with no baseline to compare against.
Notable
Sudden Large Increase in Payments
This entity's payment amounts have increased dramatically — often 10 times or more — within a short period with no corresponding change in documented activity.
Legitimate business growth tends to scale gradually. When a company goes from receiving small amounts to millions very quickly without any visible expansion in operations, staff, or documented service delivery, it raises questions about whether the increased billing reflects real services rendered. The Feeding Our Future case saw payments grow from $3.4M to over $100M per year in under 24 months.
Case Study

What Arcane Tracer would
have caught and when

The Feeding Our Future fraud stole $350 million from a federal meal program and ran for three years. Every signal was in public data from the beginning. Here is the timeline.

Feeding Our Future was a nonprofit founded in 2016. It applied repeatedly to the Minnesota Department of Education for grants and was rejected each time for mismanagement and irregularities. The IRS revoked its nonprofit status in February 2020.

When COVID-19 pandemic relief funding opened with intentionally low barriers to entry, the organization began receiving millions in federal meal program payments almost immediately. Within months it was processing tens of millions per month through a growing network of shell sites.

By 2022, federal investigators uncovered a network of 79 connected entities — shared registered agents, overlapping officers, shell distribution sites. All of it traceable through public records that had been available since the first payment was made.

The fraud ran for three years. Not because the data was hidden. Because no one had a tool to connect it automatically.

Arcane Tracer's anomaly detection would have flagged Feeding Our Future on its very first federal payment — a nonprofit with revoked IRS status, previously rejected for mismanagement, suddenly receiving millions. The full 79-entity network would have been mappable within minutes.

Feb 2020
IRS Revokes Nonprofit Status
Feeding Our Future loses tax-exempt status. A public record immediately visible in IRS business filings.
Arcane Tracer flags this immediately
Mar 2020
First Federal Payments Begin
Entity with revoked IRS status starts receiving USDA meal program funds. USASpending.gov records this in real time.
Anomaly feed surfaces this on day one
Late 2020
Shell Network Begins Forming
Dozens of LLCs registered across Minnesota at shared addresses with the same registered agents in rapid succession.
Network graph maps the cluster automatically
2021
Payments Scale to $42M Per Year
Federal payments balloon from $2.6M estimated to $42M actual with no automated detection in place anywhere.
No tool existed to connect the data
Jan 2022
FBI Raids After Years of Manual Work
After years of manual investigation, FBI raids locations. Over $250M has already been stolen by this point.
Arcane Tracer would have caught this in 2020
Live Demo

The network graph in action

This is what an investigation looks like inside Arcane Tracer. Every connection is sourced from a public record.

🔒 app.arcanetracer.com / investigate / shell-cascade-demo
● Active Scan
Workspace
Network Graph
Intel Briefs (3)
All Entities
Court Filings
Active Investigation
Shell Cascade
Apex Holdings
Maritime LLC
Data Sources Active
OpenCorporates
USASpending
OFAC SDN List
SEC EDGAR
CourtListener
SHELL CASCADE Target Entity CAYMAN LLC Offshore · Flagged APEX MGMT OFAC Adjacent Meridian RE Nova Trust Hargrove Sable Pinebrook Known Entity Flagged High Risk Financial Link 14 entities · 23 connections
Scan Active
2 anomalies detected
14 entities found
Updated 23 seconds ago
Intelligence Feed
Critical Alert
Cayman LLC linked through 3 layered transfers. Offshore jurisdiction flagged by pattern engine.
OFAC Adjacent
Apex Management shares its registered agent with 2 entities on the OFAC SDN list.
Pattern Detected
Same registered agent found across 7 entities in this network — a common shell cascade indicator.
Court Record Found
PACER: Shell Cascade named in 2 civil suits in 2022 and 2023. Source: CourtListener.
AI Intelligence Brief
Shell Cascade appears to function as a layering vehicle. The offshore connection combined with a shared agent across 7 entities is consistent with asset obfuscation. Recommend tracing the ultimate beneficial owner through BVI filings. Priority: High.
Process

Three steps to expose a network

01
The Feed Finds It First
Arcane Tracer watches 50 public data sources every day. When a new entity receives government money and matches known fraud signatures — new incorporation, shared registered agent, offshore jurisdiction, post-dissolution billing — it surfaces automatically. You do not need to know what to search for.
Proactive Detection
02
The Network Maps Itself
Click any anomaly and watch the full entity network emerge in real time. Shared registered agents, overlapping officers, same addresses, connected court filings. Every connection is labeled with its original source record and explained in plain English that anyone can understand.
Network Intelligence
03
AI Writes the Brief
Every investigation generates a plain-language intelligence brief. What was found, why the patterns matter, and exactly what to investigate next. Every claim cites its source. Every output is clearly labeled as analytical observation — never a legal determination or accusation of wrongdoing.
AI Analysis
Data Sources

Where the data comes from

Every data point in Arcane Tracer is sourced from official public databases. We do not scrape, estimate, or infer. If we show it, we can cite it.

Live
USASpending.gov
All federal contracts, grants, loans, and direct payments. The primary feed for the anomaly detection engine.
Live
OpenCorporates
200M+ company records across 140 jurisdictions. Officers, registered agents, addresses, incorporation dates, and status.
Live
OFAC SDN List
US Treasury's Specially Designated Nationals. Sanctioned individuals and entities cross-referenced against every network.
Live
SEC EDGAR
All SEC filings for public companies. Ownership disclosures, beneficial ownership, and financial statements.
Live
CourtListener
Millions of federal court records. Civil suits, bankruptcies, and criminal cases searchable by entity name.
Live
State Registries
Business registry data from all 50 states. Priority coverage for Delaware, Wyoming, Nevada, and Florida.
Live
IRS Exempt Org
IRS records of nonprofit organizations including status, revocations, and annual filings. Critical for catching the Feeding Our Future pattern.
Coming Soon
FEC Campaign Finance
Federal campaign contribution records. Political connections in financial networks mapped and visible.
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