Surveillance video uncovered from 2015 allegedly shows parents involved in a daycare fraud operation in Minnesota. The footage captures parents dropping off their children at the center, only to return a few minutes later. In another clip, parents are seen receiving envelopes that seem to contain “kickback payments” for their participation.
A reporter from FOX 9 discussed the scheme in a 2018 video, stating, “For this system to work, child care centers must enroll low-income families to qualify for child care assistance funding.”
The report included footage from the Hennepin County prosecution case, depicting a parent dropping off a child and quickly walking away with them again, according to Fox 9.
The outlet pointed out that “Sometimes the children don’t come, but in any case the center will bill the state for a full day’s care.”
Further video evidence shows a man giving an envelope that appeared to be a kickback to participating parents, and additional surveillance footage was linked to the same incident handled by Hennepin County.
This footage dates back to March 2015. The case involved four daycare centers in Minneapolis accused of being central to a fraudulent billing scheme, which allegedly defrauded taxpayers of over $1 million.
Prosecutors revealed that some Minnesota daycare centers billed the government for children who never attended, with one facility allegedly charging for around 800 children who were absent.
To substantiate their claims, authorities installed surveillance cameras on nearby phone poles to monitor the number of children coming and going from the daycare.
The resurfacing of the 2015 footage followed the release of citizen journalist Nick Shirley from prison, who is suspected of multiple daycare fraud offenses in Minnesota.
The 42-minute video went viral on X, garnering over 127 million views at the time of reporting.
At the time Shirley shared the video, Minnesota Governor Tim Walz was already facing national scrutiny related to a significant scandal involving the theft of hundreds of millions from federally funded nutrition programs.
In a separate fraud case, federal prosecutors indicated that up to $1 billion in taxpayer funds could be at risk.
House Majority Whip Tom Emmer (R-Minn.) reached out to Walz, insisting on immediate action. Emmer’s letter pointed out that stolen “Minnesota taxpayer money” under Walz’s oversight was shockingly close to the total GDP of Somalia.
Meanwhile, FBI Director Kash Patel mentioned he was actively recruiting more personnel and resources in Minnesota to combat large-scale fraud that exploited federal programs.
“Frauds that steal from taxpayers and harm vulnerable children will remain a high priority for the FBI in Minnesota and nationwide,” Patel stated.
He added that the FBI had already dismantled a $250 million fraud operation that misappropriated federal food aid intended for children during the COVID-19 pandemic. This investigation led to 78 indictments and 57 convictions, including charges against some defendants for allegedly trying to bribe a jury with $120,000.
Patel remarked that this situation seemed like just the beginning, “the tip of a very large iceberg,” emphasizing ongoing efforts to track the funds and protect children. He also noted that several individuals are being referred to immigration officials for potential denaturalization and deportation processes.
