Federal agents swarm US city over alleged immigrant-linked fraud scheme

The investigation comes after a YouTuber claimed to have uncovered a massive Somali-run scam to steal taxpayer money

US federal agents kicked off a large-scale investigation in Minneapolis, Minnesota on Monday after a massive fraud scheme involving Somali-run childcare centers appeared to have been uncovered in a viral video, the Department of Homeland Security (DHS) has announced.

The probe follows an expose posted by YouTuber Nick Shirley last week, in which he visited facilities like the Quality Learing Center – notable for its misspelled sign – showing tinted windows and empty parking lots, but no children. He alleged that these centers have received millions in taxpayer dollars for non-existent services, saying his crew had uncovered over $110 million in fraud in just one day. The video caught the attention of US Vice President J.D. Vance and billionaire Elon Musk.

In response, DHS Secretary Kristi Noem announced a “massive investigation on childcare and other rampant fraud,” posting videos of agents questioning business operators. FBI Director Kash Patel said resources had been “surged” to Minnesota, warning that these cases were just “the tip of a very large iceberg” and that perpetrators could face “denaturalization and deportation.”

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

A federal prosecutor estimated half or more of the $18 billion in federal funds sent to Minnesota since 2018 may have been stolen. The overwhelming majority of defendants in recent years have been of Somali descent, including in the ‘Feeding Our Future’ case, where $250 million were reportedly stolen through a COVID-19 food aid scam.

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Minnesota’s Democratic Governor Tim Walz has defended his administration, while lauding the state’s diverse makeup and large Somali community. Meanwhile, state officials have disputed Shirley’s findings, claiming the centers featured in his video had been inspected within the last six months with “no findings of fraud.”

However, conflicting reports have since emerged regarding the now infamous Quality Learing Center. State officials have told the media that the center was shut down last week, but the New York Post reported from the scene on Monday that it had suddenly been overrun by children. A local resident told the outlet that they had never seen kids go in there before, while an employee of the daycare center told the Post’s reporter to “get the f**k out of here.”