Federal Agents Flood Minnesota Over $100M Daycare Fraud Probe After Viral Video
Federal Agents Increase in Minnesota Daycare Fraud Investigation

The presence of federal law enforcement officers in Minnesota has seen a significant increase as investigations into alleged multi-million dollar fraud within the state's daycare system intensify. This surge follows the circulation of a viral video that claims numerous childcare centres are illicitly receiving state funds while not being operational.

Viral Video Sparks Official Action and Political Outcry

The investigation gained momentum after a video posted by YouTuber Nick Shirley went viral, alleging the discovery of fraud exceeding $100 million involving Somali residents in Minnesota. The video, which has amassed over 1.5 million views on YouTube, was shared by prominent figures including US Vice President JD Vance and entrepreneur Elon Musk.

Minnesota State Representative Kristin Robbins amplified the allegations on Tuesday by sharing a video from a news portal on X. The clip purported to show a daycare worker providing kickbacks to parents implicated in the scheme. Robbins accused state leadership of inaction, writing, "It's the same playbook used for years - now also seen in charges in autism centers & credible whistleblower reports... @Tim_Walz & DHS have ignored obvious red flags & patterns."

Federal Agencies Launch "Massive Operation"

In response, top federal officials have announced a major escalation. Both Department of Homeland Security (DHS) Secretary Kristi Noem and FBI Director Kash Patel confirmed that operations in Minnesota are being ramped up. Noem stated on social media that officers were "conducting a massive investigation on childcare and other rampant fraud." Patel emphasized the goal to "dismantle large-scale fraud schemes exploiting federal programs."

The DHS has been publicly documenting its activities, posting videos of agents visiting multiple businesses. They declared, "Our investigative agents are conducting a massive operation to identify, arrest, and remove criminals who are defrauding the American people. We will root out this rampant fraud plaguing Minnesota." A law enforcement official told CNN that on Monday alone, DHS agents visited approximately 30 businesses in Minneapolis linked to the video's claims.

State Response and Daycare Centre's Defence

State authorities have acknowledged the serious nature of the allegations. Tikki Brown, commissioner of the Minnesota Department of Children, Youth, and Families, addressed the issue in a press conference on Monday. While expressing reservations about some methods used in the video, Brown told CNN affiliate KARE, "We do take the concerns that the video raises about fraud very seriously."

One centre named in the allegations is the Quality Learning Center. Its manager, Ibrahim Ali, spoke to KARE, refuting the claims. Ali explained that Shirley filmed the centre during its scheduled closed hours. "There’s no fraud going on whatsoever," he asserted. Regarding a misspelled signboard ('Learing' instead of 'Learning') highlighted in the video, Ali attributed it to a sign maker's error and promised a swift correction.

The unfolding situation marks a significant federal intervention into Minnesota's social services framework, with investigations focused on the misuse of the Child Care Assistance Program (CCAP). The outcome of this massive probe could have substantial implications for childcare oversight and federal program integrity in the state.