Resurfaced 2015 Video Shows Parents Faking Drop-Offs in $1M Taxpayer Scam

The scandal over alleged fraud in Minnesota's taxpayer-funded childcare programs has exploded anew, with federal authorities surging resources to investigate claims that echo a decade-old scheme where parents staged brief drop-offs to enable bogus reimbursements.

Lax oversight under Democratic governance has allowed hundreds of millions—possibly billions—in public funds to vanish into phantom operations, many tied to the state's Somali community.

A resurfaced 2015 surveillance video from Hennepin County shows parents appearing to drop off children at a daycare center only to leave minutes later with them, part of a fraud scheme that allowed providers to claim reimbursements for nonexistent care.

Then-Hennepin County Attorney Mike Freeman said at the time, "They were billing too much, they went up to high. It's hard to imagine they were serving that many people. Frankly if you're going to cheat, cheat little, because if you cheat big you're going to get caught."

Four centers participated, stealing over $1 million.

Abdirizak Ahmed Gayre and Ibrahim Awgab Osman pleaded guilty to felony theft by swindle.

A local Fox station aired footage of an alleged kickback payment.

The old case gained fresh attention after independent journalist Nick Shirley's viral video showed apparently empty daycares receiving millions.

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One facility, the Quality Learning Center—sign misspelled as "Quality Learing Center"—reportedly received $1.9 million from the Child Care Assistance Program in 2025 alone, totaling up to $7.8 million since 2019 per investigations.

Shirley filmed locked doors and no activity.

A nearby resident said, "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."

On Monday, observers noted staff bringing in dozens of children.

Kids Magically Appear at ‘Learing’ Center After Viral Fraud Bust

Local residents reported never seeing children at Quality “Learing” Center until after Nick Shirley’s expose video highlighted alleged taxpayer fraud.

RiftTVAlicia Powe

Ibrahim Ali, son of the owner, responded, "Do you go to a coffee shop at 11 p.m. and say, 'Hey, they're not working?'"

No official charges have been filed against the center.

FBI Director Kash Patel announced heightened efforts, stating the bureau had already deployed resources before Shirley's video.

"Fraud that steals from taxpayers and robs vulnerable children will remain a top FBI priority in Minnesota and nationwide. The FBI has toppled a $250 million fraud network that targeted vulnerable children and exposed a 'large-scale money laundering' operation," Patel said in a statement posted on X. "

"The investigation exposed sham vendors, shell companies and large-scale money laundering tied to the Feeding Our Future network. The case led to 78 indictments and 57 convictions. These criminals didn't just engage in historic fraud, but tried to subvert justice as well," he continued. "The FBI believes this is just the tip of a very large iceberg. We will continue to follow the money and protect children, and this investigation very much remains ongoing. Furthermore, many are also being referred to immigrations officials for possible further denaturalization and deportation proceedings where eligible."

The scandals link to broader losses, including the Feeding Our Future COVID-era scheme where funds bought luxury goods instead of meals.

President Donald Trump called Minnesota a "hub of fraudulent money laundering activity" and vowed to revoke protected status for certain Somali nationals.

Vice President JD Vance warned, "What's happening in Minnesota is a microcosm of the immigration fraud in our system. Politicians like it because they get power. Welfare cheats like it because they get rich. But it's a zero sum game, and they're stealing both money and political power from Minnesotans."

A Walz spokesperson said the governor has strengthened oversight and supported prosecutions.

Federal agents continue door-to-door probes in Minneapolis, investigating what could be one of the largest welfare fraud networks in U.S. history.