At a Glance
- FBI has increased resources to investigate alleged daycare fraud in Minnesota.
- Viral video by Nick Shirley claims a non-operational center received $1.9 million in government funds.
- Minnesota Gov. Tim Walz says the state has closed the center and referred providers to law enforcement.
- Why it matters: The case highlights a federal fraud probe that may involve Somali-owned facilities and has drawn political attention.
The rapid surge in investigations began after a viral YouTube clip alleged that a closed childcare center in Minneapolis was still receiving state and federal money. FBI Director Kash Patel posted on X that the agency had already “surged” resources in Minnesota, calling the situation “just the tip of a very large iceberg.” The probe largely focuses on Somali-owned facilities, according to Patel.
- FBI has deployed additional personnel to Minnesota.
- The investigation targets more than a dozen social services.
- The agency considers the video evidence a “tip” rather than a definitive claim.
State-Level Actions
Gov. Tim Walz‘s office defended its anti-fraud efforts, stating that the governor has “worked for years to crack down on fraud” and that the facility in question has already been closed. A spokesperson said the state has launched investigations into the specific centers and that law enforcement has already conducted raids. The Department of Children, Youth, and Families (DCYF) has not yet responded to requests for comment.
Background of the Fraud Investigation
The Justice Department has run a sprawling probe involving members of Minnesota’s Somali community for years. In 2022, federal prosecutors announced indictments in a $250 million scheme to defraud a federally funded child nutrition program. As of last month, 77 people had been charged, with Aimee Bock described as the mastermind and convicted by a jury in March.
The Viral Video and Its Claims
Nick Shirley, a self-described independent journalist, claimed the video uncovered over $110 million in fraud in one day and that the center received $1.9 million from the government this year. The clip shows Shirley standing before a sign reading “Quality Learing Center,” a misspelling of “Learning.” He alleges the center is run by Somali immigrants.
Nick Shirley stated:
> We uncovered over $110 million in ONE day.
> The center received $1.9 million from the government this year.
Facility Details and Licensing Issues
The center, licensed to care for 99 children, has been fined twice since 2022 for failing to perform required background checks and had several violations listed in its most recent licensing visit in June. The facility’s name was misspelled in the video, and no children were reportedly seen on site during Shirley’s visit. The state DHS has referred the providers to law enforcement, and raids have already taken place.
| Facility | License Status | Recent Fines | Violations |
|---|---|---|---|
| Quality Learning Center | Active | 2 | Background check failure, other violations |
Political Reactions
The Trump administration seized on the scandal earlier this month, using it to fuel a crackdown on illegal immigration in Minnesota, home to about 80,000 Somali residents. Donald Trump made derogatory remarks about Somali immigrants, while Gov. Walz blasted the president for “demonizing” the community. Calls for Walz’s resignation were made by some members of the Trump administration, citing alleged failure to curb corruption.
Key Takeaways
- FBI is intensifying a probe that could involve Somali-owned daycares.
- A viral video claims $1.9 million in unapproved funding.
- The state has closed the implicated center and referred it to law enforcement.
The investigation continues to unfold, with both federal and state agencies working in tandem to address potential fraud within Minnesota’s childcare system.
