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Independent Reporter’s Bombshell Report On Minnesota Fraud Blows Scandal Wide Open

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Independent journalist Nick Shirley’s recent report on public welfare fraud in Minnesota has racked up more than 82 million views across all platforms, including more than 30 million on X alone over the first 24 hours. The viral report has prompted calls for increased investigations from X owner Elon Musk, Vice President JD Vance and several other prominent figures.

Since the COVID-19 pandemic, federal and state investigations in Minnesota have uncovered schemes that siphoned billions in taxpayer funds through inflated billing and nonexistent services.

The most prominent case is the Feeding Our Future scandal, where prosecutors charged dozens of individuals with stealing at least $250 million from a federal child nutrition program during the COVID-19 pandemic. Participants created shell companies to claim reimbursements for millions of meals that were never served, with some funds allegedly transferred overseas, including to jihadist groups like Al-Shabaab.

Broader Medicaid fraud has been estimated at up to $9 billion, involving billing for undelivered services such as autism therapy and personal care assistance. Pre-2019 daycare fraud through the state’s Child Care Assistance Program (CCAP) accounted for another $100 million in losses, often through ghost enrollments and fake attendance records.

In total, convictions across these plots have implicated 59 people, with over $1 billion in funds wrongfully obtained or disbursed. These cases frequently involve Somali diaspora members establishing entities to exploit lax oversight in state agencies, leading to ongoing probes by the FBI and other federal bodies.

Shirley — who frequently documents protests and other breaking news events on the ground — travelled to the North Star State in order to meet with local residents and investigate further allegations of fraud, particularly the Child Care Assistance sector in Minnesota daycare centers.

In a 42-minute video titled “I Investigated Minnesota’s Billion Dollar Fraud Scandal,” Shirley documented visits to multiple licensed facilities that receive substantial public funding but showed no signs of active operation. Accompanied by a local investigator named David — who has been monitoring these sites for years — Shirley then attempted to enroll a fictional child and observes empty buildings during peak business hours.

“I would drive by these childcare centers in the middle of the day and there were never any kids there. That’s when I started asking, where are these children?” David said.

One facility, the Quality Learning Center (notably misspelled as “Quality Learing” on its sign), reportedly received $1.9 million in CCAP funding for 2025 alone, despite claiming to serve 99 children. Shirley noted the absence of staff, vehicles, or playground activity.

One nearby resident voiced suspicion about the facility when approached by Shirley for questioning. “I haven’t seen any kids,” they said.

Another center allegedly secured $2.66 million for 102 enrollees but appeared shuttered, with staff refusing entry and calling police when questioned. A third example involves a site with a cumulative $7.8 million in funding over time, yet it amassed 95 regulatory violations, including safety hazards, without closure.

Shirley claimed his single day of fieldwork uncovered ties to over $110 million in potentially fraudulent allocations across similar centers, suggesting a pattern of billing for phantom services that echoes the mechanics of earlier scandals like Feeding Our Future.

While investigations are ongoing both at the criminal and government level, Shirley’s viral report prompted calls for increased investigations and an increase of resources dispatched to the effort.

Vice President JD Vance described it as “far more useful journalism than any 2024 Pulitzer winners,” highlighting how such programs enable fraud while politicians maintain control. Elon Musk labeled it “massive fraud… aided by the state governments themselves” and advocated for prosecuting involved officials amid the estimated $9 billion in Medicaid losses.

In addition, FBI Director Kash Patel called the $250 million Feeding Our Future case the “tip of the iceberg” before announcing a surge of agents to Minnesota for investigating and prosecuting similar networks.

RELATED: Six New Indictments Announced As Part Of Minnesota’s Multi-Billion-Dollar Fraud Scandals