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Federal agents kick off wide probe in Minneapolis amid fraud scheme

(MENAFN) US federal authorities have initiated a large-scale investigation in Minneapolis, Minnesota, following allegations of widespread fraud at Somali-operated childcare centers, as stated by reports. The probe comes after a viral video appeared to expose the scheme.

The video, posted last week by YouTuber Nick Shirley, featured visits to facilities such as the Quality Learing Center—noticeable for its misspelled sign—showing empty parking lots and tinted windows but no children. Shirley claimed that these centers had received millions of taxpayer dollars for services that were never provided, alleging his team uncovered over $110 million in fraud in a single day. The video reportedly drew attention from US Vice President J.D. Vance and entrepreneur Elon Musk.

In response, DHS Secretary Kristi Noem announced a “massive investigation on childcare and other rampant fraud,” posting footage of agents questioning operators. FBI Director Kash Patel stated that resources had been “surged” to Minnesota, warning that the cases represent just “the tip of a very large iceberg” and that those responsible could face “denaturalization and deportation.”

A federal prosecutor estimated that half or more of the $18 billion in federal funds sent to Minnesota since 2018 may have been misappropriated. The majority of defendants in recent fraud cases have reportedly been of Somali descent, including the ‘Feeding Our Future’ case, in which $250 million was allegedly stolen through a COVID-19 food aid scam.

Minnesota Governor Tim Walz defended his administration while emphasizing the state’s diverse population and large Somali community. State officials also disputed Shirley’s claims, noting that the centers featured in the video had been inspected within the last six months with “no findings of fraud.”

However, conflicting reports have emerged regarding the Quality Learing Center. State officials said the facility was closed last week, but the New York Post reported Monday that it had been overrun by children. A local resident told the outlet they had never seen children attend the center, while a daycare employee reportedly told the reporter to “get the f**k out of here.”

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