Original Article By David Hawkins
The Department of Homeland Security (DHS) has announced that a “massive operation” is underway in Minnesota targeting individuals accused of defrauding U.S. taxpayers, following renewed scrutiny over documented and alleged fraud inside the state’s publicly funded childcare and social-services programs.
“Our investigative agents are conducting a massive operation to identify, arrest, and remove criminals who are defrauding the American people,” the agency posted on X.
“We will root out this rampant fraud plaguing Minnesota.”
MORE IN MINNEAPOLIS.
— Homeland Security (@DHSgov) December 30, 2025
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. pic.twitter.com/LcfSDCq0Ij
The announcement came one day after DHS said it would surge resources into the state in response to independent journalist Nick Shirley’s report.
Videos posted by DHS Secretary Kristi Noem show agents with Homeland Security Investigations (HSI) going door-to-door and questioning business owners in Minneapolis.
WATCH:
DHS is on the ground in Minneapolis, going DOOR TO DOOR at suspected fraud sites.
— Homeland Security (@DHSgov) December 29, 2025
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
Federal prosecutors have already secured dozens of convictions tied to Minnesota welfare-related fraud scandals.
The most recent indictment was filed on December 18, when six individuals were charged with wire fraud involving a housing stabilization program and an autism services program administered through Medicaid.
Five of the defendants face allegations related to the housing program, while one is charged in the autism services scheme.
The latest charges are connected to broader fraud probes stemming from the 2022 Feeding Our Future scandal, the largest pandemic-related fraud case in the United States, in which 78 defendants were accused of stealing nearly $250 million from federal child nutrition programs by falsifying meal counts, creating fake invoices, and using fabricated identities.
To date, 56 individuals have pleaded guilty and seven have been convicted, including founder Aimee Bock.
Investigators say the autism and housing schemes exhibit similar patterns, including recruitment tactics and exploitation of low-oversight programs under the Minnesota Department of Human Services.
Across the interconnected cases, more than 90 people have now been charged.
During a recent press conference, U.S. Attorney for the District of Minnesota Joseph Thompson estimated that Medicaid fraud in the state could exceed $9 billion, stating:
“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.”
Shirley’s viral investigation centered on Minnesota’s Child Care Assistance Program (CCAP), focusing on daycare facilities receiving substantial taxpayer subsidies.
In a 42-minute video titled “I Investigated Minnesota’s Billion Dollar Fraud Scandal,” Shirley documented visits to multiple licensed facilities that receive significant public funding yet showed no signs of active childcare operations.
Joined by a local investigator named David, who has monitored the locations for years, Shirley attempted to enroll a fictional child and repeatedly encountered empty buildings during peak business hours.
Workers at the properties refused to discuss potential enrollment and, at times, attempted to prevent him from entering.
The most widely viewed segment featured his visit to the “Quality Learning Center” in Minneapolis, which was misspelled on signage as “Quality Learing.”
The facility reportedly received $1.9 million in CCAP funding for 2025 despite claiming to serve 99 children.
Shirley described an absence of staff, children, or outdoor activity.
Windows were blacked out, and “Learing Center” workers became combative when he asked about enrolling a child.
He further claimed that a single day of fieldwork revealed potential links to more than $110 million in questionable billing activity across similar sites, suggesting a recurring pattern of phantom services resembling earlier Minnesota fraud schemes.
WATCH:
🚨 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
— Nick shirley (@nickshirleyy) December 26, 2025
We ALL… pic.twitter.com/E3Penx2o7a
According to records from the Minnesota Department of Human Services, the center accumulated 95 violations between 2019 and 2023, including failure to keep hazardous items away from children, lack of records for 16 children, non-compliance with staffing ratios, missing first-aid/CPR credentials, inadequate allergy-response policies, and non-compliant crib safety standards.
The facility was placed on a conditional license in 2022 for two years, with repeated compliance concerns noted in subsequent reviews.
Yet, it retained its license through 2026.
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