Politics
NEW: Feds Launch ‘Massive Operation’ To Investigate Somali Fraud In Minnesota
The Department of Homeland Security (DHS) on Tuesday announced that a “massive operation” is underway in Minnesota to “identify, arrest, and remove criminals who are defrauding the American people.” The announcement comes on the heels of a viral report centering on documented and alleged welfare fraud in the state’s childcare industry.
“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 agency posted on X. That announcement came just a day after DHS said it would be surging resources to Minnesota in direct response to Shirley’s report.
Videos posted by DHS Secretary Kristi Noem show agents with the department’s Homeland Security Investigations (HSI) going door-to-door and questioning business owners in Minneapolis.
DHS is on the ground in Minneapolis, going DOOR TO DOOR at suspected fraud sites.
The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found. Under the leadership of @Sec_Noem, DHS is working to deliver results. pic.twitter.com/7XtRflv36b
— Homeland Security (@DHSgov) December 29, 2025
Federal prosecutors have secured dozens of convictions relating to welfare fraud scandals in Minnesota. The most recent indictment came on December 18, when six individuals were charged with wire fraud related to a housing stabilization program and an autism services program administered through Medicaid.
Five defendants face allegations tied to the housing program, while one is charged in the autism services scheme.
The new indictments are connected to broader fraud investigations in Minnesota, stemming from the Feeding Our Future scandal that began in 2022. That case, the largest COVID-19-related fraud scheme in the U.S., involved 78 defendants accused of stealing nearly $250 million from federal child nutrition programs by falsifying meal claims, creating phony invoices, and using fake names. To date, 56 individuals have pleaded guilty, and seven have been convicted, including founder Aimee Bock.
The autism and housing schemes share patterns with Feeding Our Future, including recruitment tactics and exploitation of low-oversight programs under the Minnesota Department of Human Services. Overall, more than 90 people have been charged across these interconnected cases.
U.S. Attorney for the District of Minnesota Joseph Thompson estimated that Medicaid fraud alone in the state could top $9 billion. “The fraud is not small. It isn’t isolated. The magnitude cannot be overstated… What we see in Minnesota is not a handful of bad actors committing crimes. It’s a staggering, industrial-scale fraud,” he said during a recent press conference.
🚨 Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable
We ALL… pic.twitter.com/E3Penx2o7a
— Nick shirley (@nickshirleyy) December 26, 2025
Shirley’s viral report primarily focused 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 observed empty buildings during peak business hours.
This was met with hostility from workers, who refused to discuss potential enrollment and attempted to keep him from entering the property.
The most widely-viewed portion of the segment detailed his visit to the “Quality Learning Center” in Minneapolis, which was erroneously spelled as “Quality Learing.” The purported daycare reportedly received $1.9 million in CCAP funding for 2025 alone, despite claiming to serve 99 children.
Shirley noted the distinct lack of staff, children or playground activity at the site. Exterior windows of the site were also blacked out, while “Learing Center” workers were combative with the journalist when he asked to enroll a fictional child in the daycare.
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.
According to records from the Minnesota Department of Human Services, the center racked up 95 violations between 2019 and 2023. This includes failure to keep hazardous items away from children, no records for 16 children, non-compliance with staff-to-child ratios, lack of first aid/CPR training, inadequate allergy response policies, and crib mattresses not meeting safety standards.
The center was placed on a conditional license in 2022 for two years, with additional reviews noting repeated issues, yet it retained its license through 2026.
