Journalists Releases Report Allegedly Exposing Fraud

By
Mark Stevens
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The numbers are staggering. The footage is damning. And if what journalist Nick Shirley and his team uncovered in just one day holds up under scrutiny, then Minnesota may be ground zero for the largest state-level fraud scandal in American history.

Shirley’s 42-minute investigative video, now widely circulated and pushing toward viral territory, follows a trail of government-funded childcare centers — supposedly recipients of millions in public assistance — that appear to care for no children at all. Some were closed during weekday hours, some were windowless, and one had the word “learning” misspelled on its signage. Multiple area residents said they’ve never seen children at the centers — not once, not in years.


At the heart of the investigation is the Child Care Assistance Program (CCAP), a joint state and federal initiative meant to help low-income families access early childhood education. In Minnesota, that’s become a funnel for hundreds of millions of dollars, much of it — allegedly — siphoned off through fraudulent daycare providers. According to Shirley’s on-camera guide, a Minneapolis man named David, more than $110 million in suspect payments were traced in just one day of digging.

And it’s not just daycare fraud. At a press conference earlier this month, federal prosecutor Joseph Thompson revealed that fraud in 14 taxpayer-funded programs may total over $9 billion — potentially half of all disbursed funds since 2018. He called Minnesota an “outlier in a bad way”, citing a phenomenon he described as “fraud tourism”: people literally moving to Minnesota because it’s seen as an easy state to defraud.


“Every day we look under a rock and find a new $50 million fraud scheme,” said Thompson.
“That shouldn’t be the case in a state of our size.”

But it is.

And it’s happening under the watch of Democrat Governor Tim Walz, who now finds himself increasingly isolated and defiant as scrutiny mounts. His dismissive response? That Thompson’s $9 billion estimate is “sensationalism” and that there’s “no evidence” to support such claims — despite dozens of convictions, ongoing FBI investigations, and widespread media coverage.


But the public isn’t buying it. Shirley’s video shows residents expressing outrage, one telling him bluntly that if this is Walz’s fault, he “should be jailed.” The video includes tense confrontations with individuals operating supposed daycare centers, some of whom refuse to answer basic questions — such as how many children are enrolled, or why none are present. One woman even tells Shirley she’s afraid of him because of his “color,” a moment that drew backlash online and underscored the cultural tensions surrounding the issue.

And now the scandal has caught the attention of Elon Musk, who called for Walz’s prosecution, writing simply:

“He should be in jail.”

There’s a growing sense that this isn’t just about fraud — it’s about a political ecosystem that allowed it, ignored it, or enabled it for years. Many of the implicated organizations and businesses — like Safari Restaurant, used for Omar-linked events and now tied to the $250 million Feeding Our Future scam — have deep connections to local Democratic power structures.

The fraud isn’t isolated. It’s systemic. Prosecutors say this isn’t just overbilling or bureaucratic mishaps — it’s intentional, organized theft, with entire companies created for the sole purpose of defrauding the state. That distinction matters. This isn’t Medicaid padding. This is racketeering.

And as more light is shined on the scope, the question becomes not if officials knew — but who knew, how early, and why it continued for so long. That trail could very well lead back to Governor Walz’s administration, and to Democratic allies who turned a blind eye.

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