Is This the NGO Loophole That Has Allowed Them to Get Away with It? [WATCH]

An exchange between Walter Curt and John Fredricks focused on allegations that taxpayer-funded daycare operations tied to nonprofit organizations are being used to funnel money into political campaigns through complex corporate structures.

Curt said he and his team have uncovered what he described as a widespread scheme involving nongovernmental organizations, limited liability companies, and political donations.

According to Curt, the funding originates from taxpayer dollars that flow into NGOs operating daycare facilities, which then route money into LLCs owned by those same nonprofits.

“It is outrageous. It is outrageous how much fraud there is,” Curt said.

“The bigger thing that you should be looking at is the fact that they’re using these daycares to fund their political campaigns. That’s what we found out over the past couple days.”

Curt said the structure involves NGOs receiving taxpayer funding, transferring money to LLCs they control, and then using those LLCs to make political donations.

“The NGOs get taxpayer dollars. They push it into the LLCs that are owned by the NGOs, and then those LLCs donate to political campaigns,” Curt said.

“It’s insane, but we’re gonna prove it out over the next couple days.”

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Fredricks asked Curt to provide a concrete example of how the alleged scheme works in practice.

“Draw that line for me, like, give me an example of a political campaign that got taxpayer money that came from a daycare,” Fredricks said.

Curt pointed to a specific case in Ohio.

“Well, there’s a Somalian Rep. Surprisingly enough, isn’t that strange? There’s a Somalian rep in Columbus, Ohio who four different daycares sent him $2,000 from each one of their daycare facilities,” Curt said.

Curt argued that the scale of the alleged activity could be far larger, suggesting that thousands of NGO-linked LLCs could be involved nationwide.

“Imagine if you’ve got infinite money, John, taxpayer money to fund your political campaigns,” Curt said.

“Let’s cut their money off. That’s the real way we’ve actually taken back this country.”

Fredricks then asked about Curt’s next steps in Ohio.

“So what do you what are your next steps in Ohio?” Fredricks asked.

Curt said he is assembling a team to investigate dozens of businesses tied to nonprofit organizations.

“Well, I’ve got a team of about 10 people that are coming out here now, and we’re all going to go find these businesses,” Curt said.

“I’ve got 73 businesses on one list just for two organizations.”

Fredricks asked Curt to explain how nonprofits could legally operate in a way that allows campaign donations.

“What do you mean by 73 businesses for two organizations? Explain what that means,” Fredricks said.

Curt described how nonprofit organizations can own LLCs, which he said creates a loophole.

“A 501(c)(3) can’t donate to a political campaign,” Curt said.

“But a 501(c)(3) can own an LLC. It’s called a disregarded entity.”

According to Curt, those LLCs are not barred from making political donations.

“There’s nothing stopping those LLCs from them donating to political campaigns just like they can do everywhere else,” he said.

Curt said he believes the donations are structured as many small contributions spread across a large number of LLCs.

“My theory was, well, what if they’ve got 10,000 businesses that sit underneath these NGOs that they then pump into political campaigns,” Curt said.

“If you’ve got 10,000 of them, and they can each donate 2000 you’ve got $20 million per candidate.”

Curt said preliminary findings suggest significant sums may already have been moved through this system.

“The numbers we’ve seen so far, it looks like $30 million just in Minnesota over the past two years,” Curt said.

Curt questioned how such large-scale fraud could occur without assistance from individuals in positions of power and raised concerns about political leadership in Minnesota.

“You don’t hide $9 billion with a fraud, John, you don’t hide that,” Curt said.

“Someone’s helping you. So that’s the question. Who is helping them? Who’s getting a cut? Where are the wheels getting greased? And that’s what we’re working on now.”

WATCH:

🚨DO WE HAVE Political Donations Being “Smurfed” By LLCs? We’re about to find out.

If proven true, it will be the largest taxpayer-funded money laundering operation in history.

Here’s how it could work:

NGOs take federal money.
Those NGOs spin up LLCs they fully own.
Those… pic.twitter.com/onUKEbn99q

— Walter Curt (@wcdispatch) January 2, 2026