Federal officials in Minnesota are currently engaged in a significant investigation following the online posting of a video by an independent journalist, which allegedly depicts fraud involving a child care center. Homeland Security Secretary Kristi Noem announced via social media that the Bureau of Investigation (HSI) and U.S. Immigration and Customs Enforcement (ICE) are conducting operations in Minneapolis.
Fox News Digital attempted to contact the Department of Homeland Security, ICE, and the FBI for further information.
Lawmakers are scrutinizing SBA loans tied to a staggering $9 billion fraud situation in Minnesota, describing the decisions made as ‘reckless.’
A video posted by Noem showed HSI agents questioning an individual outside an undetermined business. Meanwhile, another video released by ICE illustrated agents visiting various locations.
“The American public deserves clarity regarding the management of their taxpayer funds, and we will ensure accountability when abuses are found. @Sec_Noem, DHS is committed to delivering results,” the agency stated on social media.
Minnesota, still grappling with a previous $250 million fraud case that resulted in multiple indictments, found itself back in the media spotlight after journalist Nick Shirley uploaded a 42-minute YouTube video on Friday. This video showcases visits to various child care centers across the state.
FBI Director Patel has remarked that the $250 million fraud case is merely ‘the tip of a very large iceberg,’ prompting the FBI to actively recruit more staff for Minnesota.
In one segment of Shirley’s video, he and another individual were seen at what seemed to be an underutilized child care facility. Additionally, the building featured a sign with a misspelled name, “Quality Learning Center,” which reportedly accommodated 99 children and received approximately $4 million in state funding.
The video provoked considerable backlash, resulting in criticism directed at Minnesota Governor Tim Walz from notable public figures, including Vice President J.D. Vance, Congressman Mike Lawler from New York, Donald Trump Jr., and Elon Musk.
On Sunday, the White House shared a post from Education Secretary Linda McMahon, which labeled the fraud allegations as a “breathtaking failure” that occurred during Walz’s administration.
Minnesota Governor Tim Walz stated, “Minnesota is a prosperous and well-run state.”
During an appearance on Fox News’ “The Big Weekend Show,” Shirley insisted that the fraud was “very clear” to the point that even a child could recognize it. He expressed frustration, saying, “Fraud is fraud, and we work too hard just to pay our taxes and allow this to happen.”
Over the weekend, FBI Director Kash Patel noted that the Bureau had intensified its efforts to address large-scale fraud schemes exploiting federal programs by reallocating investigative resources to Minnesota.
When the video was released, Walz was already facing scrutiny over ongoing issues within his administration, which included allegations of over $1 billion in losses attributed to social welfare fraud, particularly affecting the Somali community in Minneapolis.
Fox News Digital did reach out to the governor’s office for a response but had not received any comments at the time of this report.
