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Feds launch massive taxpayer fraud probe in Minnesota after viral video

Federal agents in Minnesota are investigating alleged misuse of over $110 million in taxpayer funds following a viral video accusing daycare centers and businesses of fraud.

  • On Monday, the Department of Homeland Security moved its Minnesota fraud probe from social media to door-to-door field operations in Minneapolis, posting footage of federal investigators at suspected sites.
  • Last week, a viral video by YouTuber Nick Shirley alleged nearly a dozen Minnesota daycares pocketed public funds, drawing millions of views and prompting federal action.
  • An independent CBS News review found most targeted centers held active licenses and had recent inspections, while at the Quality Learing Center roughly 20 children arrived Monday during operating hours 2 p.m. to 10 p.m.
  • Federal officials say arrests have been made, with Minnesota Attorney General Pam Bondi crediting Shirley's work as dozens are charged and more than 60 convicted while investigators comb records.
  • Amid mounting federal pressure, political scrutiny of federal funds oversight has intensified, while Somali immigrant community members and local staff describe fear and targeted enforcement.
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Le·gal In·sur·rec·tion broke the news in on Monday, December 29, 2025.
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