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As journalist Nick Shirley’s Dec. 26 video alleging widespread fraud in childcare centers in Minnesota has gone viral, federal authorities are investigating the matter. (Photo credit: Nick Shirley / X, and Homeland Security / X)
FBI Dir. Kash Patel Claims This Is “Just The Tip Of A Very Large Iceberg”
“Potentially the largest fraud scandal in U.S. history is taking place in Minnesota,” begins independent journalist Nick Shirley in his now-viral video on Somalian-run childcare centers in Minnesota.
In this 42-minute video, Nick joins a man simply identified as “David” who had been researching the alleged fraud in the state. Together, they visit several daycare centers, claiming there are no children on the premises despite licenses for serving, in some cases, over 100 children at a time.
Where the taxpayer funding for these centers is going is one of the big questions asked by Nick in his video, which alleges there is large-scale fraud being perpetrated by the Somalian nationals reportedly leading these centers.
Within a single day, Nick claims to have revealed $110,000,000 in fraudulent uses of federal funds for childcare centers.
As of Tuesday, Dec. 30, Nick’s video has been seen on X, formerly Twitter, over 126 million times since it was released on Dec. 26. Similarly, on YouTube the video has accrued over 2 million views.
With the added interest in this situation brought on by Nick’s video, there has been a federal response, with the Department of Homeland Security and the FBI
Watch Nick’s video, and more, below…
The Federal Response
Minnesota is governed by Gov. Tim Walz, who was notably the vice presidential running mate of former Vice President Kamala Harris during her ill-fated 2024 run for president.
On Dec. 3, President Donald Trump had DHS agents deployed to Minneapolis to address ongoing reports of problems arising from illegal immigrants from Somalia.
Then, the video by Nick Shirley was released…
Posting on X, FBI Dir. Kash Patel wrote on Sunday, Dec. 28, “The FBI is aware of recent social media reports in Minnesota. However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs.”
Patel added, “Fraud that steals from taxpayers and robs vulnerable children will remain a top FBI priority in Minnesota and nationwide.”
While Patel was not clear on when the FBI’s work addressing this alleged large-scale fraud began, he did say:
“To date, the FBI dismantled a $250 million fraud scheme that stole federal food aid meant for vulnerable children during COVID. The investigation exposed sham vendors, shell companies, and large-scale money laundering tied to the Feeding Our Future network.”
Concluding his post, Patel noted that many suspects were being connected with immigration officials for deportation or denaturalization, and added, “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.”
See Patel’s full comments, here:
CASE UPDATE: MINNESOTA FRAUD SCHEME
The FBI is aware of recent social media reports in Minnesota. However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes…
— FBI Director Kash Patel (@FBIDirectorKash) December 28, 2025
The next day, on Dec. 29, DHS Sec. Kristi Noem posted on X that U.S. Immigration and Customs Enforcement was “on the ground” in Minneapolis, Minnesota.
This can be seen on the social media pages for DHS, which has been sharing videos like this one:
DHS is on the ground in Minneapolis, going DOOR TO DOOR at suspected fraud sites.
The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found. Under the leadership of @Sec_Noem, DHS is working to deliver results. pic.twitter.com/7XtRflv36b
— Homeland Security (@DHSgov) December 29, 2025
U.S. Attorney Gen. Pam Bondi posted on X on Dec. 29, pointing to Nick Shirley’s video for helping to “show Americans the scale of fraud” allegedly in Minnesota under Gov. Tim Walz’ leadership.
Further, she said that the Department of Justice has already charged 98 individuals, of which 85 were Somalian, for alleged fraud. In total, 60 have already been found guilty, she said.
MINNESOTA FRAUD: @NickShirleyyy’s work has helped show Americans the scale of fraud in Tim Walz’s Minnesota. @TheJusticeDept has been investigating this for months. So far, we have charged 98 individuals – 85 of Somali descent – and more than 60 have been found guilty in…
— Attorney General Pamela Bondi (@AGPamBondi) December 29, 2025
Nick Shirley’s Video On Alleged Fraud In Minnesota
Near the beginning of Nick Shirley’s video, he shares a graphic from a report done by Fox News, claiming that fraudulent access and use of funding from government programs in Minnesota may exceed $9 billion.
The graphic goes on to note that Somalia’s GDP in 2024 was $12 billion.
In a Dec. 18 press conference, First Assistant U.S. Attorney Joe Thompson claimed that since 2018, fraud in Minnesota may even be as high as $18 billion.
Watch Nick Shirley’s video on the alleged Minnesota childcare fraud situation, here:
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