A revealing video linked to a 2018 state fraud investigation shows parents in Minnesota dropping their kids off at daycare and then promptly picking them up again. This comes as authorities probe a massive, $1 billion fraud operation allegedly centered in Minneapolis.
Footage from 2015, acquired by Fox 9, depicts parents signing their children into the daycare so that the healthcare provider could bill the state for a full day of care, even though the kids didn’t actually stay. It’s unsettling—there were instances where no one showed up at all, yet the daycare still sought reimbursement from the government.
The supposed fraudulent daycare operation even provided kickbacks to participating parents. One video clip reveals a man handing an envelope with cash to a parent as part of this arrangement.
This particular video surfaced again in 2018 amid growing public outrage after independent journalist Nick Shirley highlighted several Minnesota childcare centers that, despite appearing inactive, received millions in state funding.
In response to the serious fraud claims, Education Secretary Linda McMahon described the situation as “a breathtaking failure.”
Authorities in Minnesota began their crackdown in 2014, and by 2018, numerous companies were under investigation for allegedly siphoning off millions in government funds by providing fake childcare services.
Further complicating matters, Minnesota Governor Tim Walz faced scrutiny regarding other fraud accusations involving Medicaid-funded disability programs aimed at assisting seniors and individuals with disabilities.
The fraud appears to predominantly involve the Somali immigrant community in Minnesota. FBI Director Kash Patel noted that the agency is dispatching personnel and resources to investigate, focusing on dismantling extensive fraud schemes that take advantage of federal programs.
Patel warned that the childcare fraud allegations might just be “the tip of a very large iceberg,” hinting at potential deportation measures for those convicted.
