Cameras Caught Minnesota Daycare Fraud Years Before Federal Crackdown [WATCH]

As federal authorities expand investigations into alleged large-scale fraud involving Minnesota daycare centers, resurfaced surveillance footage from a 2018 criminal case is drawing renewed attention to schemes that prosecutors say date back at least a decade.

The footage, originally aired in a 2018 Fox 9 report, shows parents bringing their children into a daycare facility in Hennepin County, Minnesota, signing them in for care, and then leaving with the children just minutes later.

According to the report, the video was obtained from a surveillance camera and used as evidence in a case prosecuted by Hennepin County authorities.

Fox 9 reported that the scheme involved low-income parents signing their children into daycare centers so providers could submit reimbursement claims to the government for services that were never actually provided.

Surveillance footage reviewed by investigators allegedly showed that on some days, no families appeared at the daycare centers at all, yet the providers still sought reimbursement for childcare services.

The timestamp on the surveillance video shows March 2015, indicating the alleged conduct occurred years before the current wave of investigations.

Another segment of video shown in the broadcast depicted a man handing an envelope to a parent, which investigators alleged was a kickback payment for participating in the scheme.

This Could Be the Most Important Video Gun Owners Watch All Year

The resurfaced footage has gained attention amid widespread backlash following a viral video posted Friday by independent journalist Nick Shirley.

Shirley’s video documented visits to multiple childcare centers across Minnesota, including one location that allegedly received millions of dollars in state funding despite appearing largely inactive.

🚨 Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable

We ALL… pic.twitter.com/E3Penx2o7a

— Nick shirley (@nickshirleyy) December 26, 2025

The video triggered criticism of Minnesota Democratic Governor Tim Walz over the weekend from several high-profile figures, including Vice President J.D. Vance, Donald Trump Jr., and Elon Musk.

The controversy also drew a response from the White House, which on Sunday reposted a message on X from Education Secretary Linda McMahon.

In the post, McMahon described the alleged fraud as a “breathtaking failure.”

One fraudulent business in Minnesota that misspelled “learning” on its building received $1.9M this year while masquerading as a daycare.

There are not enough words to describe the breathtaking failure that has happened under the watch of @GovTimWalz. pic.twitter.com/jKorqta5ZU

— Secretary Linda McMahon (@EDSecMcMahon) December 28, 2025

At the time Shirley’s video gained traction online, Walz was already facing scrutiny amid a broader scandal involving alleged fraud within Minnesota social services programs.

Authorities have previously estimated that at least $1 billion was lost to suspected fraud tied to social services, with a significant portion of the cases linked to Minneapolis’ Somali community.

Reaction to the resurfaced surveillance footage was swift on social media.

Conservative strategist Greg Price wrote on X, “Somali fraudsters have been stealing from taxpayers for years and it’s clear that the entire Somali community is in on it.”

This is from a 2018 Minnesota criminal prosecution against Somali daycare fraudsters.

In surveillance video, Somali parents would take their kids to the daycare, check them in, and then leave with them moments later.

The owners of the daycare would then bill the state for a… pic.twitter.com/oXgbl2qtYj

— Greg Price (@greg_price11) December 29, 2025

Federal authorities say the renewed focus on Minnesota follows years of investigative work.

FBI Director Kash Patel said the bureau has surged additional personnel and investigative resources into the state as part of efforts to dismantle what he described as large-scale fraud schemes exploiting federal programs.

Patel said Sunday that resources were moved into Minnesota before the recent surge of online attention, citing the Feeding Our Future investigation as an example.

That case uncovered a $250 million scheme in which defendants siphoned federal food aid intended for children during the COVID-19 pandemic.

According to Patel, the Feeding Our Future investigation has resulted in 78 indictments and 57 convictions to date.

Prosecutors have also charged defendants in a separate scheme involving an alleged attempt to bribe a juror with $120,000 in cash. Patel said the investigation remains active.

“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,” Patel wrote on X.

“Furthermore, many are also being referred to immigration officials for possible further denaturalization and deportation proceedings where eligible.”

As federal and state investigations continue, the resurfaced surveillance footage has added historical context to allegations that authorities say reflect systemic abuse of public funds tied to childcare and social services programs in Minnesota.