(NewsNation) — The ongoing Minnesota social-aid fraud scandal now has state officials and a daycare manager denying allegations after a viral video questioned state-funded childcare centers.
“We are aware of a video that’s being circulated that has gained local and national attention about childcare centers in Minnesota,” Minnesota Department of Children, Youth and Families Commissioner Tikki Brown said on Monday. “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.”
The viral video, from YouTuber Nick Shirley, featured licensed day care facilities that appeared empty or abandoned despite receiving millions in taxpayer funds. Brown pushed back on the video, acknowledging each facility mentioned had been visited at least once in the past six months as part of the state’s licensing process.
Annual inspections were also conducted without advance notice to assess normal operations, Brown noted.
“There’s no fraud going on whatsoever,” said Ibrahim Ali, manager of Quality Learning Center. “Kids come to us, clients come to us, their parents come to us – they’re here daily, they leave on time, they come on time.”
Brown added inspectors found children present during those visits, and that none of the prior reviews uncovered any fraud.
Federal agencies investigating the scandal
The viral video led federal agencies to arrive in the state to investigate suspected fraud, intensifying scrutiny of the state’s oversight of public assistance programs.
The Department of Homeland Security, the FBI, Immigration and Customs Enforcement and the Small Business Administration all launched coordinated investigations into Minnesota’s fraud crisis, which has already resulted in 86 indictments and over $1 billion in losses tied to the Feeding Our Future scandal.
“The FBI believes this is just the tip of a very large iceberg,” FBI Director Kash Patel said. “We will continue to follow the money and protect children, and this investigation very much remains ongoing.”
Minnesota Gov. Tim Walz said he “has worked for years to crack down on fraud” and has strengthened oversight by launching investigations, hiring an outside firm to audit high-risk programs, shutting down the Housing Stabilization Services program entirely and supporting criminal prosecutions.
