❓WHAT HAPPENED: The Federal Bureau of Investigation (FBI) says it is in the midst of an ongoing investigation into fraud in Minneapolis childcare businesses after a daycare center allegedly stole millions in taxpayer funds.
👤WHO WAS INVOLVED: FBI Director Kash Patel, independent journalist Nick Shirley, Minnesota gubernatorial candidate Lisa Demuth (R), and others.
📍WHEN & WHERE: Ongoing investigation in Minnesota, with recent updates posted on social media in late December 2025.
💬KEY QUOTE: “This is just the tip of a very large iceberg. We will continue to follow the money and protect children.” – Kash Patel
🎯IMPACT: Several investigations into social services fraud in the state have so far exposed the widespread theft of taxpayer dollars, with 78 indictments and 57 convictions tied to a separate $250 million scheme involving the Feeding Our Future nonprofit group.
Over the Christmas holiday, Federal Bureau of Investigation (FBI) Director Kash Patel announced that the bureau is intensifying its efforts to combat Somali immigrant community-linked fraud in Minnesota following allegations that a daycare center misappropriated $4 million in taxpayer funds. Notably, the specific allegations pertain to just one of a number of Minneapolis childcare facilities that are allegedly involved in schemes defrauding taxpayers and the state and federal governments.
According to Patel, the FBI has been aware of the fraud situation for some time and has already deployed additional personnel and investigative resources to the state. In recent weeks, independent journalist Nick Shirley brought attention to the issue by posting a video on X (formerly Twitter) showing the daycare, which appeared empty, yet reportedly received millions in government funding.
The video quickly went viral, amassing over 65 million views. Shirley said that the daycare, the “Quality Learing [sic] Center,” had misspelled signage and lacked visible activity, raising questions about how it received such large sums of money.
🚨 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
Meanwhile, Patel noted that the FBI’s investigation has already helped dismantle a $250 million fraud network connected to the Feeding Our Future program, which involved fake vendors, shell companies, and money laundering schemes. He emphasized that the bureau remains committed to protecting children and pursuing those who exploit federal programs, stating, “Fraud that steals from taxpayers and robs vulnerable children will remain a top FBI priority.”
The broader fraud investigation involving individuals connected to Minnesota’s Somali immigrant community has already resulted in dozens of indictments and convictions. Patel noted that some individuals involved attempted to bribe jurors and are now facing significant prison sentences and restitution orders. He also mentioned that immigration authorities are reviewing cases for possible denaturalization and deportation proceedings.
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