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A Ripoff of Historic Proportions: The Amount of Money Involved in the Minnesota Fraud Scandal Is Absolutely Staggering

Michael Snyder by Michael Snyder
December 31, 2025
in Curated, Opinions
Reading Time: 7 mins read
228 5
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Tim Walz

(The Economic Collapse Blog)—I have been digging into the fraud scandal in Minnesota, and what I have learned has absolutely floored me.  It isn’t just millions of dollars or hundreds of millions of dollars that we are talking about in this case.  The fraudsters have literally stolen billions of taxpayer dollars, and they have been spending it on luxury vehicles, expensive homes and all sorts of other things.  This is something that has been going on for many years, and finally something is being done to stop it.

We owe Nick Shirley a tremendous amount of gratitude, because his investigative video is the reason why so many people are talking about the Minnesota fraud scandal this week…

As Homeland Security agents were in Minnesota conducting what DHS Secretary Kristi Noem called a “massive investigation on childcare and other rampant fraud” on Monday, many of their targets came not from tips from the FBI, but from a video posted on social media over the weekend.

The video, posted by conservative YouTuber Nick Shirley, alleged nearly a dozen day care centers in Minnesota that are receiving public funds are not actually providing any service. As of Monday, the video had been viewed more than 1 million times, according to YouTube’s metrics, and was seen by tens of millions more on X.

“While we have questions about some of the methods used in the video, we do take the concerns that the video raises about fraud very seriously,” said Minnesota Department of Children, Youth, and Families commissioner Tikki Brown.

If you have not watched his video yet, I would very much encourage you to do so.

Why can’t our law enforcement agencies operate like this?

Shirley says that he was able to uncover 110 million dollars in fraud in just a single day…

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 work way too hard and pay too much in taxes for this to be happening, the fraud must be stopped.

This is one of the reasons why citizen journalists such as Nick Shirley and myself work tirelessly to expose the truth.

Because in so many cases our government officials will never take action until people start demanding it.

Apparently those that live in the vicinity of the “Quality Learing Center” in Minneapolis never see any kids around.

But now that this scandal is blowing wide open, suddenly there were quite a few kids at the facility on Monday…

The Quality “Learing” Center Minneapolis, a purported day care flagged in a viral video designed to expose fraud, may have been bustling with kids Monday, but it is typically such a ghost town that it appeared closed, a local told The Post.

The resident called the kiddie scene at the site Monday — a few days after explosive footage called it out and suggested it was part of widespread state fraud — “highly unusual.

“We’ve never seen kids go in there until today. That parking lot is empty all the time, and I was under the impression that place is permanently closed,” the person said.

Sadly, the fraud at daycare centers in Minnesota has apparently been going on for a very long time.

In fact, surveillance footage at one daycare center in 2015 shows parents signing in their kids “so providers could bill the state for full days of care for children who didn’t actually attend”…

Shocking unearthed video from a 2018 state fraud case shows Minnesota parents dropping their children off at a day care center and then leaving with the kids moments later — as authorities probe a rampant billion-dollar fraud scheme in Minneapolis.

In the surveillance footage, dated 2015 and obtained by Fox 9, parents are seen signing their kids into the facility so providers could bill the state for full days of care for children who didn’t actually attend.

On some days, no families would even show up at all, but the day cares would still claim reimbursements from the government, the outlet reported at the time.

Needless to say, this sort of thing is not just going on in Minnesota.

Hopefully this scandal will cause the federal government to take a very close look at taxpayer-funded programs all over the nation.

Earlier in December, CBS News reported that hundreds of millions of dollars was being stolen through a nonprofit entity in Minnesota known as “Feeding Our Future”…

Earlier this month, CBS News detailed how a group of convicted fraudsters allegedly spent some of the millions of taxpayer dollars stolen by people associated with a nonprofit called Feeding Our Future, which was meant to help feed vulnerable children during the pandemic.

Investigators say fraudulent payouts to the Feeding Our Future program alone were estimated at $250 million, making it the nation’s costliest COVID-era aid scam.

Walz, a Democrat, previously agreed with an estimate from First Assistant U.S. Attorney Joe Thompson that fraud across all programs, including the Feeding Our Future scheme, which is not a DHS-administered program, could total $1 billion.

Vast amounts of money that was supposed to go toward feeding needy children ended up in the pockets of fraudsters instead.

And apparently they spent that money on vehicles, homes and other luxuries…

Luxury cars, private villas and overseas wire transfers: CBS News obtained dozens of files and photos that reveal how Minnesota fraudsters blew through hundreds of millions in taxpayer dollars as part of one of the biggest COVID-era fraud schemes.

The files document a spending spree in which defendants, many of Somali descent, took taxpayer money meant to feed hungry children and used it to buy cars, property and jewelry. Videos show them popping champagne at an opulent Maldives resort. In a text message, one defendant boasts: “You are gonna be the richest 25 year old InshaAllah [God willing].”

Remember, this was just one nonprofit entity.

Fraud has been discovered at countless others as well.

Overall, prosecutors are telling us that the total amount of fraud that they have uncovered in Minnesota now comes to a grand total of 9 billion dollars…

Monday’s DHS visits come amid what prosecutors allege is a $9 billion COVID-era fraud scandal in Minnesota. Gov. Tim Walz and other state officials have disputed that figure and defended their handling of the crisis.

There are 14 specific Medicaid-funded programs in Minnesota currently under federal investigation, although child care isn’t one of them.

9 billion dollars in just one state!

Just think about that.

U.S. Attorney General Pam Bondi has announced that 98 individuals involved in the fraud in Minnesota have been arrested so far…

@NickShirleyyy’s work has helped show Americans the scale of fraud in Tim Walz’s Minnesota.

@TheJusticeDept has been investigating this for months. So far, we have charged 98 individuals – 85 of Somali descent – and more than 60 have been found guilty in court.

We have more prosecutions coming…BUCKLE UP, LAWMAKERS!

But what about all of the other states?

An investigative journalist has discovered that rampant daycare fraud is also happening in Ohio.

And apparently fraudsters in Ohio are raking in massive amounts of cash by engaging in a widespread “home health” scam…

Ohio attorney Mehek Cooke CONFIRMS MASSIVE fraud in Ohio, another hotbed for Somalis

They run fake “home health” and bill $250,000 PER YEAR, per FAMILY, when no work is actually being done

She says it also happens in PENNSYLVANIA

“Audit America. Audit Ohio now. And I’m pushing for that in every single state!”

“The state will, as long as the doctor has approved it, continue to pay you. It could be for 10 hours, 12 hours, up to 24 when it’s critical care.”

“So you could sit at home without caring for an elderly parent who really doesn’t need it, make about $75,000 to $90,000 a year. Now you add two parents, that’s $180,000. Now you add your in-laws $250,000.”

We all knew that the level of fraud in the system was off the charts.

Now we are finally starting to get some of the details.

According to the Department of Housing and Urban Development, over 5 billion dollars in federal rental assistance was sent to ineligible recipients last year alone…

A new report from the US Department of Housing and Urban Development has found that more than $5 billion in federal rental assistance during fiscal year 2024 went to potentially ineligible recipients, including nearly 30,000 deceased individuals and thousands of non-citizens, according to MSN and the NY Post.

The audit, conducted by HUD’s Office of the Chief Financial Officer, reviewed nearly $50 billion in housing aid and identified $5.8 billion — about 11% — as “questionable.” More than 200,000 tenants were flagged, including 29,715 listed as deceased, 9,472 non-citizens, and 165,393 households receiving payments above local eligibility limits, particularly in large metro areas such as New Orleans. Officials said suspicious payments appeared nationwide, with heavy concentrations in New York, California and Washington, DC.

“A massive abuse of taxpayer dollars not only occurred under President Biden’s watch, but was effectively incentivized by his administration’s failure to implement strong financial controls resulting in billions worth of potential improper payments,” HUD Secretary Scott Turner said. “HUD will continue investigating the shocking results and will take appropriate action to hold bad actors accountable.”

U.S. taxpayers are being ripped off over and over again.

It is truly a national disgrace.

If we make enough of a stink about it, and if enough people start going to prison, hopefully we will start to see real change.

Enough is enough.

We are 38 trillion dollars in debt, and we simply cannot afford to keep sending billions of dollars to the hordes of lawless predators that are eagerly taking advantage of the rest of us.

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

Buy physical precious metals before the next gold and silver surge. Don’t buy numismatics! Buy pure bullion instead. Whether with cash or retirement funds, learn how we can help you prepare for financial turbulence ahead.
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Comments 9

  1. Grandpa Pickers says:
    2 months ago

    Funny how every swinging dick with a keyboard is all of a sudden interested in the Somalis. I’ve yet to see one article with a thread of new info not already brought to light. Where were you with the neighborhoods were screaming for help? How may whistle blowers got shrugged off? Yeah, your too late to earn any props on this gig.

    Reply
  2. Bob says:
    2 months ago

    And yet, me and my wife, American citizens with no criminal records, who never harmed anyone, remain homeless for over two years now. We have been lied to, defrauded, refused assistance, forced from our home under color of law, lost all of our possessions, lost employment caused by inability to find affordable housing, suffering credit damage due to extended unemployment, and now have no hope for the future. And yet, this lowlife, lying scum thoroughly ensconced in those whited walls of our government, give aid and comfort to other lowlifes, also under color of law and fraudulent altruism, while letting good Citizens suffer. And, of course they benefit from the ill-gotten gains of said operations. There is only one punishment for such garbage, and it comes at the end of a steel chamber, polished, rifled and chamfered, held and manipulated with great care, delivering the reward of justice carefully burrowed deep within the minds of those who thought they could destroy The People. I pray that day comes swiftly.

    Reply
    • PHERGUS berger says:
      2 months ago

      Bob , it’s the demokraps in our govt which allowed this kind of fraud in the first place. Remember under briben bitler & Co they purposely loosened restrictions and proof so more money could get to the “children” etc under that covid scam. Notice how all these immigrant blocks of fraudsters ALL support and funnel money to the dems in their states…you think it coincidence ?….no way jose bob , no way. The dems are geting substantial kickbacks from these day care and health care frauds because they have been purposely making it easier to scame and look the other way and even nix investigations into same. Meanwhile these dems get huge blocks of these fraud communities votes and kickback cash. DOGE made this all come out on a national level – the dems cant hide this crap anymore.

      Reply
  3. Topps says:
    2 months ago

    This is why we need limited, smaller government. It has become the draw for all sorts of reprobates to “make it” in America. Word got out a long time ago that we just hand out money without any background checks. Rita Moreno sang it best in west Side Story. “…everything’s free in America.”

    Reply
  4. Danthedog says:
    2 months ago

    One would have to be blind to not see this Omar woman from Somalia was up to no good. Marrying your brother to get him into the USA has been known since day one with this trash. Then her constant hammering on how bad this country is and you have someone here, in congress no less that really hates us. Is she her legally? I’ve no idea. Bit the thousands upon thousands of Somalis the kenyan brought in are not. They offer absolutely nothing positive to the USA. They do nothing positive for the homeland. And we are here throwing our tax dollars at them as if that fund is unlimited. Minnesota, Ohio, NY, and now an article from Seattle all saying the same thing. Somalis are pirates and we allow that in our country. The libs love it since this does not impact them. Yet.
    I’ve reached the end of my civility as I’m certain many others have. Backhoes are going to be busy.
    We are five days away from fundamentally transforming this country. Some jerk from Kenya said that a few years back.

    Reply
  5. EricinDallas says:
    2 months ago

    Meh. USAID fraud makes the Somali fraud look like chump change

    Reply
  6. fkje sflighiej says:
    2 months ago

    It’s not just daycare. It’s everywhere. We are on very expensive Medicare at $650 per month each. After an operation the rehab center said we would need a wheelchair(we didn’t). They ordered one for us. We protested saying we didn’t need one. But they went ahead and they kept assuring us it wouldn’t cost us anything. And it didn’t directly cost us anything but this abuse of the system was surely partly responsible for our extremely high monthly rates. And here is the punchline: the medical equipment company billed Medicare $3,000 for the chair. Medicare happily paid it. Not blinking an eye. The exact same brand and model from Amazon was listed as $157.
    By the way. When the medical equipment company delivered the chair it was broken, missing some bolts, and was obviously previously used. They sent us a replacement. It was also broken but not as badly and I fixed it then shoved it into a corner of the garage where it still sits today, never used.

    Reply
  7. bert33 says:
    2 months ago

    When does omar leave for somalia

    Reply
  8. Joseph H. Hoag says:
    2 months ago

    So who got the money? Why is the governments (state & federal) not seeking to recover the funds and jailing the recipients?

    Reply

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