Homeland Security agents have launched a significant investigation into alleged fraud at childcare centers in Minnesota, following the viral circulation of a video that raised serious concerns about the legitimacy of these facilities. This inquiry, described by DHS Secretary Kristi Noem as a “massive investigation on childcare and other rampant fraud,” has largely been prompted by a social media post rather than traditional tips from law enforcement.
The video, created by conservative YouTuber Nick Shirley, claims that almost a dozen daycare centers in Minnesota, which receive public funding, are not providing any actual services. As of Monday, the video had garnered over 1 million views on YouTube and reached tens of millions more on the platform known as X.
“While we have questions about some of the methods used in the video, we do take the concerns it raises about fraud very seriously,” stated Tikki Brown, commissioner of the Minnesota Department of Children, Youth, and Families.
In addition to the investigations initiated by the DHS, state officials conducted site visits to some of the daycare centers mentioned in the video. They reported to CBS News that two of the centers highlighted had already closed earlier this year, although one of these centers later informed the state of its intention to remain operational.
CBS News performed its own investigation into the daycare centers identified by Shirley. State records revealed that all but two of these centers maintain active licenses, and each were inspected by state regulators in the past six months. One facility, Sweet Angel Child Care, Inc., had an unannounced inspection as recently as December 4.
While CBS News’ examination uncovered numerous citations related to safety, cleanliness, equipment, and staff training, no evidence of fraud was found in their records.
Attempts to contact and visit several daycare centers yielded no responses on Monday. The DHS visits come in the wake of allegations of a broader $9 billion fraud scandal tied to COVID-19 relief efforts in Minnesota, a figure that Governor Tim Walz and other officials have contested.
Currently, there are 14 Medicaid-funded programs in Minnesota under federal investigation, although childcare services are not included in this list.
Earlier this month, details emerged regarding a group of convicted individuals who allegedly misappropriated millions meant for a nonprofit organization called Feeding Our Future, intended to support vulnerable children during the pandemic. Investigators estimate that fraudulent disbursements to this program alone could reach $250 million, marking it as the most expensive COVID-related aid scam in the nation.
Governor Walz has previously aligned with an estimate from First Assistant U.S. Attorney Joe Thompson, suggesting that total fraud across all programs, including the Feeding Our Future scheme, could amount to $1 billion. “The fraud is not small. It isn’t isolated. The magnitude cannot be overstated,” Thompson remarked last week.
To date, 78 individuals have been arrested in connection to the Feeding Our Future fraud scheme, with a significant number being Somali Americans, despite the program’s leader, Aimee Bock, not being part of that community. Minnesota is home to the largest Somali population in the United States.
Former President Trump has labeled Minnesota as a “hub of fraudulent money laundering activity” and has criticized the state’s Somali community, recently announcing his intention to terminate protected status against deportation for Somalis residing in the state. Earlier this month, U.S. Immigration and Customs Enforcement initiated Operation Metro Surge in the Twin Cities, resulting in over 400 arrests.
On Monday evening, Republican Minnesota Representative Tom Emmer expressed his views on social media, stating, “I have three words regarding Somalis who have committed fraud against American taxpayers: Send them home. If they’re here illegally, deport them immediately; if they’re naturalized citizens, revoke their citizenship and deport them quickly thereafter.”
