Recent events in Minnesota have drawn attention to potential fraudulent activities at daycare centers. A video posted by conservative YouTuber Nick Shirley has sparked a significant investigation by Homeland Security. This video alleged that nearly a dozen daycare centers receiving public funds might not be providing adequate services.
Investigation Initiated by Viral Video
As of Monday, the video had garnered over 1 million views on YouTube and reached tens of millions on X. Minnesota Department of Children, Youth, and Families Commissioner Tikki Brown confirmed the seriousness of the fraud allegations, despite questioning some methods used in the video.
DHS Engagement and State Response
The Department of Homeland Security (DHS) agents began their investigation on Monday, which included site visits to some daycare centers implicated in the video. State officials reported that two of the centers featured had already shut down earlier this year. However, one of those centers announced its intention to remain operational later that day.
CBS News analyzed the daycare centers mentioned in Shirley’s video. The findings revealed that most had active licenses, with only two exceptions. Additionally, all active locations had undergone regulatory inspections within the last six months, ensuring compliance with state standards.
- Sweet Angel Child Care, Inc. was inspected as recently as December 4.
- Although numerous safety and staff training violations were noted, there was no evidence of fraud found.
- CBS News reporters attempted to contact several centers but received no responses.
Broader Context of Fraud in Minnesota
This investigation occurs amidst claims of extensive COVID-era fraud across Minnesota, with figures suggesting a staggering $9 billion in fraudulent activity. Governor Tim Walz and state officials have contested these estimates, advocating for their handling of the crisis.
Currently, 14 Medicaid-funded programs in Minnesota are under federal scrutiny, although child care programs are not included in this group. Earlier this month, CBS News reported on alleged fraud linked to Feeding Our Future, a nonprofit intended to assist vulnerable children during the pandemic. Investigators believe that fraudulent payouts related to this program could amount to $250 million, categorizing it as one of the most costly aid scams in the nation.
Impact and Arrests
So far, 78 individuals have faced arrest in connection with the Feeding Our Future case. A significant portion of those accused are Somali Americans, highlighting Minnesota’s large Somali community. The scheme’s leader, Aimee Bock, has already been convicted.
In light of these events, concerns about fraud in Minnesota continue to rise. Recent actions by U.S. Immigration and Customs Enforcement, including Operation Metro Surge in the Twin Cities, resulted in over 400 arrests, further emphasizing the ongoing crisis surrounding fraudulent activity.
