Federal Agents Launch Fraud Probe into Minnesota Childcare Centers
The investigation stems from an exposé posted by YouTuber Nick Shirley last week, in which he visited sites such as the Quality Learing Center – notable for its misspelled signage – showing darkened windows and vacant parking lots, but no children.
He alleged that these centers had received millions in taxpayer funding for services that did not exist, claiming his team uncovered more than $110 million in fraud in a single day. The footage drew attention from US Vice President J.D. Vance and billionaire Elon Musk.
In reaction, DHS Secretary Kristi Noem announced a “massive investigation on childcare and other rampant fraud,” sharing videos of agents questioning business operators. FBI Director Kash Patel stated that resources had been “surged” to Minnesota, cautioning that these cases represented “the tip of a very large iceberg” and warning that offenders could face “denaturalization and deportation.”
A federal prosecutor estimated that half or more of the $18 billion in federal funds allocated to Minnesota since 2018 may have been misappropriated. The majority of defendants in recent years have been of Somali origin, including in the ‘Feeding Our Future’ case, where $250 million were allegedly stolen through a COVID-19 food aid scam.
Minnesota’s Democratic Governor Tim Walz defended his administration, praising the state’s diverse population and sizable Somali community. At the same time, state officials challenged Shirley’s claims, asserting that the centers featured in his video had been inspected within the past six months with “no findings of fraud.”
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