Minneapolis Investigator Names Names and Brings Receipts [WATCH]

Minnesota independent investigator David Hoch outlined what he described as a massive and coordinated childcare fraud scheme centered in Minneapolis that later spread nationwide, accusing state officials and Democratic leadership of enabling and covering up the abuse of public funds.

Hoch said his investigation began after he noticed a dramatic and unusual increase in childcare facilities across the Twin Cities, particularly in neighborhoods he knew well.

“My journey into uncovering fraud in Minnesota and ultimately throughout the entire United States, as it turns out, began when I started to notice very unusual changes in the Minneapolis area,” Hoch said, explaining that facilities appeared “literally on every block,” with some blocks hosting multiple centers.

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What raised further suspicion, Hoch said, was the absence of any signs of children at these facilities.

“Minnesota sees a fair amount of snow in the winter, and I began to notice driving by these child facilities, there were never any footprints in the snow outside these child care facilities,” he said, noting that he passed many of them multiple times a day because his office was nearby.

After researching ownership records through the Minnesota Secretary of State’s office, Hoch said a clear pattern emerged.

“Every single one of them was Somali owned,” he said, clarifying that he was referring to the facilities clustered around his office, not all childcare centers statewide.

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He added that the locations themselves were unusual, often housed in commercial or industrial buildings, located in rough neighborhoods, and lacking play areas.

Hoch said several facilities advertised extended or overnight hours that would require multiple state licenses.

“Several of the child care facilities had signage which stated they were open, either 7am to 10pm 2pm to 10pm quality leering center, for example, or open 24 hours,” he said, questioning why parents would leave children overnight in such locations.

“Who the heck brings their kid to stay overnight at a child care facility in a rough neighborhood?”

According to Hoch, Minnesota law requires separate licenses for daytime and overnight childcare operations, yet none of the facilities advertising extended hours had both.

“How many of these facilities that are open these extended hours, have two licenses, none of them zero,” he said.

Hoch also detailed state staffing requirements, explaining that facilities billing for dozens of children would be required to employ large numbers of properly classified workers.

He cited one example, saying, “If a child care facility was billing the state of Minnesota for 99 children, i.e. Quality Learing Center, that childcare facility, would need to have at least eight employees supervising those children.”

He added that such employees must be W-2 workers, not independent contractors, a standard he said would not withstand federal scrutiny.

Addressing concerns that his investigation unfairly targets the Somali community, Hoch acknowledged the sensitivity of the issue.

“Fraud certainly exists in every community,” he said, but argued that “it was the sheer volume and the blatant nature of the Somali fraud that demanded my intention.”

Hoch blamed state leadership for allowing the scheme to flourish, naming former and current officials at the Minnesota Department of Human Services.

“We got here because of politicians, almost exclusively Democrats,” he said, singling out former commissioner Jodi Harpstead and current commissioner Shireen Gandhi.

He accused DHS of criminal behavior, saying, “So now we hear that Minnesota Department of Human Services is forging documents and back dating paperwork, all in an effort to cover up their complicity in this fraud.”

Hoch said the scheme has now expanded beyond Minnesota. “Minneapolis was the incubator for this nationwide fraud,” he said, adding that similar activity is now appearing in states including Maine, Washington, and Ohio.

He argued the motive extended beyond financial gain, claiming the fraud created long-term political leverage.

“If you can get a population in here and fit them into this Fraud framework, you have a guaranteed voting block for all eternity,” Hoch said.

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