Minnesota daycare centres ‘fraud’ row: Claims of kickbacks trigger major FBI, DHS probe

The FBI and the DHS have ramped up their resources in Minnesota after a YouTube video alleged massive frauds at the state’s daycare centres being run by Somalis. Republican leaders are also slamming Governor Tim Walz about his inaction regarding the alleged fraud.

DHS raids businesses in Minnesota as part of investigations into alleged fraud.
DHS raids businesses in Minnesota as part of investigations into alleged fraud.(X/@DHSgov)

The number of federal officers in Minnesota is rising as investigations into the alleged daycare centre frauds intensify. This surge of officers in the state is coming in the wake of a viral video which claims that several daycare centres in the state are receiving funds from the state’s Child Care Assistance Program without being actually operational.

Minnesota State Representative Kristin Robbins on Tuesday shared a video on X by a news portal which claimed that it showed a daycare worker paying kickbacks to parents who were allegedly involved in the scheme.

Sharing the video, Robbins wrote, “It the same playbook used for years – now also seen in charges in autism centers & credible whistleblower reports of kickbacks in transportation & Adult Day Care. @Tim_Walz & DHS have ignored obvious red flags & patterns.”

Both Department of Homeland Security Secretary Kristi Noem and FBI Director Kash Patel have announced that operations in the state are being increased. This move follows a viral video posted by YouTuber Nick Shirley which claimed that he has discovered fraud worth more than a $100 million by Somali residents in the state.

The DHS has also been posting videos of their visits to several businesses in the state, claiming, “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.”

The video has received more than 1.5 million views on YouTube and was also shared by the likes of US Vice President JD Vance and Elon Musk.

On Monday, the Minnesota Department of Children, Youth, and Families commissioner, Tikki Brown, said in a press conference that state authorities are taking the allegations seriously.

“While we have questions about some of the methods that were used in the video, we do take the concerns that the video raises about fraud very seriously,” Brown was quoted as saying by KARE, a CNN affiliate.

Noem posted on social media that officers were “conducting a massive investigation on childcare and other rampant fraud.” Patel said the intent was to “dismantle large-scale fraud schemes exploiting federal programs.”

CNN spoke to a law enforcement official, who claimed that DHS agents on Monday visited around 30 businesses in Minneapolis because of Shirley’s video.

Quality Learning Center – in the eye of the storm

KARE spoke to a manager at Quality Learning Center, one of the daycare centres Shirley alleged is closed but still receiving funds. The manager, Ibrahim Ali, told the news outlet that Shirley had reached the centre when it was scheduled to remain closed.

“There’s no fraud going on whatsoever,” Ali told the outlet.

The video had also highlighted the misspelling on a signboard outside the establishment, where ‘Learning’ was spelt as ‘Learing’. When asked about this, Ali told the outlet that it was a mistake by a sign maker and will be fixed soon.

Read More

Latest

Tiny Triassic Reptile Sheds Light on Early Lizard Evolution

Science & Nature Today, lepidosaurs -- the reptile group...

Ediacaran Sea Creature May Hold Earliest Evidence of Right-Handedness

Science & Nature Spriggina floundersi, a marine species that...

Astronomers Uncover Hidden Structures Surrounding Orion Nebula

Science & Nature Using the Karl G. Jansky Very...

The space industry is weighing ambitious hiring against heritage

Science & Nature Space is hard, as the decades-old...

Newsletter

Don't miss

Tiny Triassic Reptile Sheds Light on Early Lizard Evolution

Science & Nature Today, lepidosaurs -- the reptile group...

Ediacaran Sea Creature May Hold Earliest Evidence of Right-Handedness

Science & Nature Spriggina floundersi, a marine species that...

Astronomers Uncover Hidden Structures Surrounding Orion Nebula

Science & Nature Using the Karl G. Jansky Very...

The space industry is weighing ambitious hiring against heritage

Science & Nature Space is hard, as the decades-old...

2026 eclipse: 5 citizen science projects you can contribute to

Science & Nature During the August 2026 solar eclipse,...

Breitbart Business Digest: Stacking Those $250 Trump Bills

Weekly Wrap: Making It Rain with Trump Bills Welcome back to Friday! This is the Breitbart Business Digest weekly wrap, our septidialogic sweep through the economic and financial news. This week the economy failed to get indigestion from the high price of gas, Treasury Secretary Scott Bessent told us about getting fed at the Fed, Trump

Business seminar in Munich highlights Hong Kong’s strategic roles amidst global shifts (with photos)

Business seminar in Munich highlights Hong Kong's strategic roles amidst global shifts (with photos) ******************************************************************************************      The Hong Kong Economic and Trade Office, Berlin (HKETO Berlin), promoted Hong Kong's unique advantages and strategic roles at the seminar "Hong Kong's strategic role amidst geopolitical tensions" on June 18 (Munich time) in Munich, Germany.             Senior executives, investors

AI for business services: From job fears to productivity

AI for business services: From job fears to productivity