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The documentary-style segment follows Nick Shirley and David as they investigate widespread fraud in Minnesota, centering on nonemergency medical transportation (NEMT), daycare operations, and the way state funds are billed for services that may not be delivered. They present a pattern where transportation companies appear to underpin multiple fraud schemes across childcare, adult daycare, autism services, and interpreter services, with transportation acting as the “belly of the beast” that ties these lines of fraud together. Key findings and claims include: - The investigation asserts that Minnesota’s NEMT sector is dominated by Somali-owned companies. David notes about 20 NEMT companies in Minnesota, with more than 90% Somali-owned, many hosted in addresses that appear noncommercial or vacant (an apartment, a house, a convenience store, or a vacant building) with little or no signage or staff. - The group argues the average national vehicle count per NEMT company is 20. They estimate Minnesota could have approximately 800 Somali-owned NEMT companies, each with about 20 vehicles, and claim payments from the state are based on electronic submissions of trips and miles, with trips typically paid at about $50 per trip (round trips $100). They contend many trips are never performed, yet payments are made once the electronic form is submitted, with no verification of actual service delivery. - The symposium of fraud is described as consisting of daycares, adult daycares, autism services, and other welfare providers that rely on the transportation brokers to create a paper-trail justifying payments to the providers, even when services aren’t delivered. This paper trail allegedly enables continued state funding for many supposedly operating centers. - Safari Transportation (607 Cedar Avenue South, Minneapolis) and Dreamline Transportation (617 Cedar Avenue South) are presented as examples of fraudulent listings: Safari Transportation is alleged not to exist at the listed address; Dreamline Transportation is said to be housed in a liquor store at 617 Cedar Avenue South, with multiple addresses showing confusing or false registration. On-site checks reveal no functioning transportation company or vans, and staff acknowledge the addresses are misleading. The reporting team notes that the listed addresses often correspond to other, non-transport businesses (e.g., money-wiring shops or liquor stores), with no observable fleet and no evidence of active transportation services. - They visit other addresses tied to transportation, such as Epimonia Transport (at 305/308 area) and Crescent Transportation in Saint Louis Park; Epimonia is described as lacking vehicles and consistency in address listings, while Crescent Transportation is found to be an apartment complex rather than a storefront, casting doubt on the legitimacy of these entities. - The Hopkins Child Care Center is highlighted as an example of large state funding for a facility licensed for 118 children, with reported funding of around $2.25 million for a given year and millions across multiple years, yet the center is observed as shuttered or lacking visible child activity, with many vehicles reportedly idle and windows blacked out. Similar patterns are noted at other daycare centers such as Quality Learning Center and Proud Child Care Center in Eden Prairie, which also show high funding receipts (e.g., $1.9 million for Quality Learning Center in a given year; Proud Child Care Center receiving about $1.25–$1.26 million in recent years), but with no apparent foot traffic or detectable enrollment. - The investigation connects the fraud to political actors and public officials, alleging cover-ups or complicity, and raises questions about accountability for figures like Tim Walz. They assert that investigations and governmental actions have been insufficient or misdirected to address the alleged fraud. - In a broader fraud narrative, they claim millions of dollars were being funneled through TSA at Minneapolis–Saint Paul International Airport, with whistleblowers recounting large sums (often in the millions) moved by Somali-descent individuals, sometimes via routes through Atlanta to Dubai before wiring money to Somalia. A former TSA narcotics investigator describes routine cash movements at checkpoints, suggesting that declarations of large sums did not trigger meaningful enforcement, and implying the funds were linked to the daycare and welfare networks described earlier. Throughout, the speakers attempt to confront individuals at various sites, record responses, and juxtapose the alleged abundance of funding with the lack of visible services or vehicles. They emphasize that even when fraud is spotlighted, participants often respond with hostility or denial, while security is required to manage confrontations. They conclude with a call for accountability and reforms, asserting that the fraud spans the entire state and that transportation companies are central to the ability to sustain fraudulent payments.

Miss Reyrich asked about the retaliation people experience when trying to expose fraud and corruption in Minnesota. Speaker 1 said retaliation has been ongoing for some time. They cited Faith Bernstein’s 2019 Newsweek report: Bernstein was heavily investigated and moved to a different state agency, retaliated against in every kind of way you can think. Recently, retaliation has escalated to threats of losing your job and losing your home, and to tracking your children, with efforts to ensure you can't get a job anywhere in state government. For Minnesota this means you can’t get a job anywhere Democrats control, including Minneapolis, Saint Paul, Hennepin County, Ramsey County, Duluth, Rochester. Miss Reyrich then asked if this will prevent people from continuing to speak out. Speaker 1 said they hope that with light on it and telling people that this is the retaliation, if something like that does come to fruition right now, it’s threats, although some people have been fired, that they have a little bit more ability to speak up and speak to them and that they can cover them in that way. But it’s been really, really bad, and it’s been bad for quite some time.

A documentary-style investigation in Minnesota accuses widespread government-funded fraud across childcare, elder care, and health care services, alleging that hundreds of millions (potentially billions) of taxpayer dollars were funneled to fraudulent businesses, many run by Somali-owned entities, with insufficient or no evidence of actual children or patients being served. Key figures and setup - David: An investigator whose office is in Minneapolis, claiming firsthand exposure to fraud. He frames the problem as deeply entrenched, involving billions of dollars and potentially ties to terrorist groups abroad. - Nick Shirley: The presenter and filmmaker, documenting the investigation, confronting daycare centers, health care providers, and government officials. Main fraud allegations and examples - Childcare and early learning centers: - Multiple Minneapolis daycares listed at the same addresses, licensed for large capacities (e.g., 120 children) but with no children present in long-running site visits. - Examples include Mako Childcare and Mini Childcare Center: combined licensing for 120 children, but vans never moving and no children observed over repeated visits; fiscal year payments ranged from about 714,000 to over 1.6 million dollars for the two centers in various years. - ABC Learning Center and other nearby facilities: windows blocked out, doors locked, no children observed despite licensing for dozens or hundreds of children; payments in the hundreds of thousands to millions per year. - Sweet Angel Childcare and others: similar patterns—license capacity reported, payments received, but no children seen; in one case, ongoing operation with no obvious play area or evidence of childcare. - The video notes cases where two daycares share addresses or switch names (e.g., Creative Minds Daycare reopens as Super Kids Daycare Center) yet continue to receive state funding, suggesting “fraudulent” billing. - Some locations claimed to be open long hours and to serve many children, yet on-site visits found no children, locked doors, or hostile responses when questioned. In one instance, a staffer refused to discuss the operation or provide paperwork. - Specific sums cited include ownership of facilities with payments like 1.26 million, 987 thousand, 714 thousand, 1.6 million, 1.3 million, 1.0–1.6 million in various fiscal years, totaling near several millions per site and aggregating toward millions across multiple centers. - Home health care and other services: - A building housing 14 Somali-owned home health care companies under many different names, all operating from the same location, raising concerns about service provision and billing. - A broader claim that in Minnesota, 14–22 Somali health care businesses at the same address are part of the same ecosystem; government money (state and federal CCAP funding) is disbursed to these entities, with a perception that services may not be rendered as billed. - A separate building contains numerous health care providers; the interviewee asserts that 50–60 million dollars per year could be fraudulently routed through this single building. - Overall scale and claims: - David asserts the fraud is “far worse than anybody can imagine” with estimates initially as high as 7 to 10 billion, later revised publicly to around 8 billion; in total, a major portion of the state budget is implicated. - A central claim is that funds from CCAP (a blend of federal and state money, taxpayer money) are written as checks to providers who may not deliver corresponding services; the state’s checks are allegedly not effectively cross-checked for actual service provision. - Political and procedural dimensions: - The investigation contends that Minnesota governor Tim Walz is responsible for allowing or failing to curb fraud, describing the state as “ground zero” for the issue and criticizing political and procedural inaction. - The documentary frames fraud as nonpartisan, noting Medicaid fraud occurs across parties and administrations nationwide, but then presents a partisan friction as they confront lawmakers at a state Capitol hearing. - At the Capitol hearing, Republicans and Democrats discuss fraud, with some speakers asserting the problem is nonpartisan and rooted in systemic issues across administrations, while others push to hold specific leaders accountable and emphasize the need for transparency and enforcement. Confrontations and outcomes - The team encounters resistance and hostility at several sites, including doors locked, hostile staff, and in one instance, a confrontation resulting in police involvement at a building housing healthcare providers. - The investigators claim to have faced intimidation and even threats; they describe instances of violence toward them for asking questions about child and elder care fraud. - The film documents a tense, complex landscape of allegations, aiming to connect misallocated funds to non-delivered services, with ongoing investigations, raids, and political debate as the state capital becomes a focal point for accountability discussions.

At Future Leaders Early Learning Center, a parent repeatedly attempts to enroll their child, Joey, but is told nothing is working and cannot obtain paperwork or a business card. The parent asks if Joey can be checked into the daycare and whether there are children present to accompany him. The staff indicates there are no children today and implies that Joey would not be accepted into the daycare, leaving the parent frustrated as they explain they would like to put Joey in the center because they’ve heard great things. Speaker 1 notes that Joey is still homeless, and Speaker 0 reiterates that Joey is still looking for daycare. The scene shifts to an autism center as an alternative option, prompted by the perceived rise of autism in Minnesota and the claim that government funds are contributing to this rise. The parent explains that, since many daycare centers are closed, they are trying to check Joey into an autism center. The staff at the autism center avoids giving a precise number of children, suggesting there are more than five but cannot provide an exact count. Speaker 0 asks the autism center staff what they think about fraud that has been labeled on autism centers in the area and why these centers are popping up. The staff member responds that they cannot answer questions about fraud and asks if the interviewer is a news reporter, identifying themselves as Nick. They emphasize they are trying to determine legitimacy before bringing Joey there, to avoid a non-legitimate business. The interaction continues with a back-and-forth in which the autism center staff denies being a ghost operation and references another phone number, but the main exchange focuses on the difficulty of finding a place for Joey. The closing remark from Speaker 0 underscores that, once again, little Joey cannot get into daycare and cannot be accepted by the autism center either. In summary, the sequence documents a parent’s unsuccessful attempts to place Joey in a daycare (due to no availability and a lack of acceptance for the child on this visit) and then considers enrolling him in an autism center, amid questions about the legitimacy and prevalence of such centers and concerns about fraud, with limited information about the number of children served. The rift between wanting a reliable, enrolling option for Joey and the centers’ unclear capacity or legitimacy is repeatedly highlighted.

The investigation highlights potential fraud or serious irregularities in Somali daycare operations, based on observed signs such as windows not covered with vinyl and a lack of signage or children visible at purported day care locations. The team questions the existence of many day cares, noting that some places listed as licensed have no identifiable activity or occupants when visited. Speaker 2 argues that even if a daycare were legitimate and serving only two children, there is “no world” where the government should be giving almost a million dollars or three-quarters of a million dollars in subsidies to such a place. The discussion underscores how fraudulent claims can be made easily and points to a lack of visible accountability in the system. The agency responsible for overseeing and funding daycares is identified as the Washington State Department of Children, Youth, and Families, with Secretary Tana Sen named as the head of the agency being discussed. To contact leadership, the team attempts to reach the communications department led by Nancy Gutierrez, noting repeated efforts to obtain comment about suspicious Somali daycares. They report multiple attempts to call and email, with messages indicating that some numbers are unavailable and voicemails are full. Speaker 0 notes the difficulty in getting a response from DCYF’s top communications official, emphasizing that their mailbox is full and no responses have been received. This lack of contact is framed as convenient for avoiding questions about the alleged issues. Speaker 6 states that if fraud is confirmed, a forensic audit should be conducted to trace how much money was actually spent and to recover any funds. Speaker 7 suggests that, even in the best-case scenario, the situation is inefficient and a waste of taxpayer dollars. Speaker 8 adds that there is a prevailing attitude in Olympia that does not recognize the problem.

Scott Stillman, a former Department of Human Services computer forensics director, said the million dollar figure and alleged that money from the daycare fraud was being sent to fund terrorists in Somalia.

The video documents a visit to what is alleged to be Halauli Childcare Center in Kent, Washington. Speaker 0 asks, “Hi. Is this is this Halauli childcare?,” and is told, “No. No? There’s no childcare here?” They respond, “No childcare. Okay. God. Thank you so much. Have a good one.” The clip repeats, “There’s no childcare,” and notes that they were at Halauli, described as “what’s allegedly Halauli Childcare Center in Kent, Washington,” which is “right behind me right here.” The speaker says they went to the door and mentions that the exact address listed on the state website shows the center receiving over $800,000 in 2023. The closing remark reiterates, “They claim there’s no child care here.”

The speaker discusses concerns about day care providers in Minnesota who are allegedly violating federal and state laws and regulations. The core allegations include taking money for personal use, using funds to set up fraudulent child care clients, and providing kickbacks. The speaker notes that not just a few cases exist but 23 child care centers are either closed or under investigation. He states that the fraud may reach as high as $100,000,000. Specific financial figures are provided: in fiscal year 2018, Minnesota received $120,000,000 in federal funding, and the state contributed about $50,000,000 in matching and maintenance funds. The speaker contends there may be a fraud case of nearly $100,000,000 in Minnesota, with the money then being transferred out of the country via MSP Airport. He emphasizes that this is a major issue in Minnesota. The speaker then asks what the agency is doing to investigate these matters and whether there could be stricter enforcement to monitor states receiving these funds, to ensure there is oversight. He expresses gratitude for the testimony and yields back, addressing Mister Lewis.

The speaker describes a pattern of fraud concentrated in clusters rather than in isolated, large-scale operations. The fraud appears to occur within family groups or tightly connected networks, spreading across multiple small sites rather than a single, massive operation. These clusters involve using single apartments, single condos, or potentially a single-family home outside of Boston, effectively creating numerous small daycare facilities. The speaker notes that the capacity of these clusters is not as high as it might be in other regions (e.g., Minnesota). As a result, fraud operates at a large number of smaller sites rather than a few large ones. The implication is that there may be more individual perpetrators overall, but each site commits fraud on a smaller scale. This distributed approach contrasts with a hypothetical scenario in which one building or site would generate a multi-million-dollar fraud; instead, the speaker expects many buildings each contributing smaller amounts, culminating in a broader spread of fraudulent activity. A key factor driving this pattern is the very low barrier to entry for opening a daycare, which facilitates a large number of potential operators and, consequently, a higher overall opportunity for fraud. The speaker emphasizes that this low barrier makes it easier for fraudulent actors to multiply across numerous small locations, contributing to a wide but shallow trafficking of schemes. The speaker explains the financial impact and mechanism of the fraud: the state is subsidizing payments for these kids, but the fraud involves both the daycare and the parents allegedly claiming that children attend the daycare when they do not. In reality, the parents certify attendance, while the daycare providers and the parents are allegedly splitting the subsidized funds. As a result, taxpayers bear the burden of subsidizing services that are not actually being provided to the claimed attendees. In summary, the described fraud occurs in clustered groups, leveraging many small daycare operations (often housed in single residences) with a very low entry barrier, leading to widespread but not individually vast fraud. The purported scheme involves falsified attendance to obtain state subsidies, with the daycare operators and some parents allegedly sharing the ill-gotten funds.

Speaker 0: Massive fraud is going on here in the state of Minnesota, especially in Minneapolis. Explain to me what's going on with the day cares. Speaker 1: One of the things I've noticed is there’s an exceptional number of childcare centers set up mostly in Minneapolis, but also in Saint Paul. I wondered how many kids are there in the Twin Cities. I visited facilities near my office and saw there aren’t any kids there. I’d go to another one and there aren’t any kids there either. I spoke with someone outside who said, “We’re all full,” yet when I looked inside the door was open and there was a couch and a table with a couple chairs and no kids. I asked if the kids were outside playing or what kind of place this was, and the staffer said, “You go,” and followed me down the street to my car. That made me think something was going on, and this was maybe five years ago. Speaker 1: This fraud is so massive. When the dust settles on this, it’s going to be found to be the largest fraud in the history of the country and probably the world. The ones I’ve gotten data on average about $2,500,000 a year, and a lot of them will say they have anywhere from 80 to 120 children. Speaker 1: I’ve been to literally 40 or 50 of these childcare centers, and there never has been a single child at any one of them ever. Morning, afternoon, evening. Some say they’re open till 10:00 at night. I go there in the morning, I go there in the afternoon, I go there at 9:00 at night. Nobody. There are no kids there ever.

In Columbus, Ohio, in front of the Great Minds Learning Academy, one of several day care centers associated with the Somali community, speakers discuss a report by Nick Shirley about fraudulent daycare facilities in Minneapolis. They note this is the second-largest Somali community in the United States and intend to investigate further. The team attempts to visit the first center, knocking and ringing the doorbell, but no one answers and the door is locked. They speak with a local man who says the daycare is owned by Somalians and mentions that he has never seen children there, noting that the center “use[s] the back door,” so they don’t see anyone coming in or out. He lives in the same building and confirms that he has not seen kids at the location. Another speaker reiterates, “I’ve just seen it the building itself. I’ve never seen nobody come out the building or go into the building.” The group proceeds to the back of the building, as suggested, but finds nothing there. They decide to move on, noting there are many more centers to visit, and plan to go around the city to speak with people at additional locations. They sign off with a plan to continue the investigation and stay tuned.

The speaker asserts that fraud has been legalized and concealed through unethical behavior enabled by unethical legislation, effectively allowing the fraud to go unseen, untracked, and without accountability. The speaker highlights Nexus Family Healing, a nonprofit located in Plymouth, Minnesota, as an example. According to the speaker, Nexus Family Healing is a national nonprofit with an executive director earning well over $500,000 annually, who is awarded a $1,000,000 grant contract through Hennepin County. The speaker then alleges that this $1,000,000 grant morphs into a three-year $7,000,000 ongoing contract, and claims that nobody knows how or why this transformation occurs. The speaker notes that when Hennepin County workers approached Julie Blaha in the state auditor’s office with concerns, they were met with “complete radio silence.” The speaker contends that Julie Blaha refuses to take action. The claim is made that the state auditor’s office is currently opaque, with no visible duties, no responsibility, and no accountability arising from that office. The speaker adds that the office receives $8,000,000 in biannual funding, yet allegedly does nothing beyond purported TikTok dances. The overarching claim is that there needs to be someone in the state auditor’s office who actually takes responsibility for how taxpayer dollars are managed and accounted for. The speaker uses these points to argue that the current system enables undisclosed or unaddressed fraud through a combination of perceived legislative loopholes and a lack of oversight or action from the state auditor’s office. The narrative centers on alleged improper contracting and funding flows involving Nexus Family Healing, and the perceived non-responsiveness of Julie Blaha and the state auditor’s office in the face of county concerns about these matters.

Speaker 0 asserts: I’m not suicidal. Any creator, politician, or celebrity who tries to make a film or documentary on CPS has wound up dead, including a senator. The November film will be their hardest hitting, and they will “rip the veil off” to the point where CPS shows up at your door. Our government is running the world’s largest child trafficking network. They emphasize they would never kill themselves, do drugs, or put themselves in dangerous environments; if anything happens to them, it is the United States government. They watched the first take of the film and say, “they’re gonna kill me.” They urge a trip down memory lane to discuss Pizzagate, stating this is where it all starts. Speaker 1 begins by saying the Pizzagate story has outrageous connections and promising brand-new whistleblower information that will blow minds. They provide an overview: back to Bill and Hillary Clinton, whom many believe to be child pedophiles. They say there’s never been direct evidence, but in 02/2016 WikiLeaks published Hillary Clinton emails with John Podesta showing coded language about a child trafficking ring centered in a Washington, DC pizza restaurant basement at Comet Ping Pong. Edgar Maddison Welch went to the restaurant with firearms to “liberate the children,” but no one was hurt; it was later said there wasn’t a basement, so the scandal was dismissed, though there’s more to the story. The transcript then ties Hillary Clinton to Laura Silsbee, who was involved in trafficking, and outlines a chain: Hillary Clinton and Laura Silsbee exchanged documents detailing logistics of trafficking children from Haiti to Boise, Idaho. Laura Silsbee had previously kidnapped several dozen children from Haiti and attempted to cross into the Dominican Republic; she was caught and the children were returned to their families. Shawnee M. King is cited for reporting on Silsbee’s case. Jorge Puello, an attorney for Silsbee’s group, was suspected of leading an international trafficking ring; Puello was arrested in investigations by ICE and Homeland Security; his wife faced charges of sexual exploitation of minors and women. The narrative claims Hillary Clinton and Laura Silsbee were connected; Bill and Hillary Clinton allegedly helped negotiate the release of Laura Silsbee and her accomplices after their imprisonment in Haiti. Speaker 1 then ties the connections to CPS: the number-one source of child trafficking is the U.S. CPS system, and the number-one gateway to sex trafficking in America is the foster care system. The foster care system allegedly lost over 100,000 children in the last twenty years, raised questions about where they went, and claims millions of children are abused in foster care by financially compensated foster parents and social workers. The Adoptive Safe Families Act (ASFA), championed by Hillary Clinton and signed by Bill Clinton in 1997, supposedly created and financed CPS/foster care by diverting Social Security funds to 50 states, giving a financial incentive to “kidnap” children. It is claimed that CPS targets poor and minority children and single-parent families, and that the system now functions as a government-subsidized child-trafficking ring. Speaker 1 lists correlations: CPS is a tool used to target conservatives; CPS offices get paid per child kidnapped; 83% of removals lack proof of abuse. The claim is that Hillary Clinton created the system and that Laura Silsbee, a friend of Clinton, is involved in Idaho’s CPS network. Laura Silsbee allegedly works with Idaho Department of Health and Welfare (IDHW) and is a registered foster care parent in Idaho, receiving monthly payments for children in her custody, as shown by whistleblower-provided screenshots. Idaho’s Attorney General Raul Labrador opened an investigation into IDHW financial misappropriations, but Idaho’s Department director Dave Jepison resigned and disappeared, and Judge Lynn Norton allegedly issued an order halting the AG’s investigation. The Idaho Department of Health and Welfare allegedly dominates Idaho’s budget, and Laura Silsbee’s role with IDHW is framed as proof of a nationwide system. The narrative concludes by warning Idahoans to beware of Laura Silsbee (aka Laura Gaylor), Judge Norton, and supporters of IDHW, asserting that the system extends to all 50 states, including Arizona, Texas, and Florida, which are described as among the worst offenders in CPS corruption.

It's the morning of March 15, and the report centers on a tip about a man leaving the country with a carry-on bag packed with a million dollars in cash. Sources say he just cleared security with that bag, and that such cloak-and-dagger scenarios now happen almost weekly at MSP International. The money is usually headed to the Middle East, Dubai, and beyond, with sources claiming that last year more than $100,000,000 in cash left MSP in carry-on luggage. The reporters say their main interest is where the money is going. The national go-to expert cited is Glenn Kearns, a former Seattle police detective who spent fifteen years on the FBI’s Joint Terrorism Task Force before retirement. Kearns is described as having tracked millions of dollars in cash leaving on flights from Seattle, money that came from hawalas—informal networks used to courier money to countries with little or no official banking system. Some immigrant communities rely on hawalas to send funds to relatives back home. Kearns discovered that some of the money was being funneled to a hawala in a region of Somalia controlled by the Al Shabaab terrorist group. The narrative then shifts to a claim that the money transfers are connected to welfare fraud, specifically day care-related fraud. The reporters note that to understand the link between day care fraud and the surge in carry-on cash, one must look at the history of the crime in Minnesota. Five years earlier, Fox 9 investigators reportedly first reported that day care fraud was rising in Minnesota, exposing how some businesses were gaming the system to steal millions in government subsidies meant to help low-income families with childcare expenses. The transcript explains the day care fraud scheme: centers sign up low-income families that qualify for child care assistance funding. Surveillance videos from a case prosecuted by Hennepin County show parents checking their kids into a center only to leave with them a few minutes later, or sometimes with no children at all. In any case, the center would bill the state for a full day of childcare. The report highlights this as a significant mechanism by which funds were diverted, tying it to larger issues of cash being moved internationally via hawalas and used to support illicit networks.

The speaker states that the woman who owns the building housing a child care service recently opened a restaurant there as well. This same woman previously ran Samala Child Care, which was rated in 2015 for stealing hundreds of thousands of dollars and had its license revoked. The speaker notes that under a different variation of her name, she also operates the Hu Yu Child Care Center. The speaker then claims that a Google search for the Hu Hu You Child Care Center yields a video featuring the mayor of Minneapolis. In that video, the mayor is playing very loudly Somali music and is wearing a shirt that shows pride in Nicolette Street. The speaker asserts that he is very proud of his community and all of the fraud that they have all committed together.

Speaker 0 describes being advised to start attending planning meetings with a task force. Over the next several weeks and months, he attended upwards of three planning meetings with a task force of about 20 personnel from various law enforcement agencies, health and human services, the BCA, Saint Paul PD, Minneapolis PD, all revolving around fraudulent daycares. They were setting up sham daycares, with fake bills, fake students, or enrollments of students who never came—essentially, fake daycares. Over the next several months, they executed several search warrants throughout South Minneapolis, Lake Street, and different areas at these daycares. Not one of the daycares he served warrants on had anyone present; they were never occupied. They were completely empty from his experience, with stacks of invoices and student records of people who surveillance showed never went there. He notes that nobody ever came in and out of these daycares. The operation “worked out” for three to four months. He was assigned as a support person to assist with anything needing financial experience, working with HSI and immigration authorities to pull records and related tasks. Ultimately, he says the task force just kinda went away, and he is not sure whatever happened to it. He mentions the meetings of “you know, I…” but the transcription ends there.

Two New Yorkers have pled guilty to a $68,000,000 fraud scheme tied to the state’s Medicaid home-care program, CDPAP. The two defendants were described as large-scale recruiters who bribed patients with laundered cash and billed Medicaid for services at Brooklyn-based adult daycares that never occurred. The case is part of a broader pattern of fraud targeting CDPAP, which is designed to help people who need care at home rather than in nursing homes by allowing them to hire their own caregiver through Medicaid, including friends or relatives chosen by the patient through the program’s process. News Nation reports that the guilty plea comes as another million-dollar-plus conviction was announced this week, involving fake billing and kickback schemes tied to Medicaid. Attorney John Flynn notes that while CDPAP is intended to ease care for loved ones, it has become a target for sophisticated scammers. The segment places these cases in a historical context of CDPAP-related fraud in New York. In 2018, a man organized payments to friends and family members as home caregivers for his ailing mother, only to discover she wasn’t in the country—living in Bangladesh—and investigators found that his brother impersonated her during home inspections to sustain the fraud. In 2024, Governor Kathy Hochul characterized CDPAP as a “racket” and one of the most abused programs in New York State’s history. News Nation reports that the governor’s office said she has “taken steps to fix the system by cutting out hundreds of middlemen.” The governor’s office also pointed to Letitia James’s actions against related scams as part of ongoing efforts to stop this kind of crime. The governor’s spokesperson cited actions such as busting related transportation-company schemes as examples of reform, while Republicans requested an audit of the CDPAP program, a request described by supporters as a political stunt, with proponents arguing that there are already measures in place. News Nation notes that President Donald Trump recently announced a new division to combat crimes like these, underscoring a broader national focus on Medicaid and CDPAP-related fraud. The segment closes with Lea Lando in New York tracking the evolving investigations and prosecutions tied to these programs.

HHS Deputy Secretary Jim O’Neill and HHS Assistant Secretary for the Administration for Children and Families Alex Adams discuss concerns about political patronage in Minnesota, alleging that incompetent state officials have allowed taxpayer money to be diverted to politically connected cronies. They claim state officials have been unwilling to confirm the size and scope of fraud, and assert that Governor Walz’s administration is diverting resources from working families to fake day care scams. They emphasize that raising a young family is challenging and that many families rely on state and federal assistance for affordable child care. They state that fraud is not victimless and that every dollar stolen is taken from children and families who need these services. They argue that Washington policies influence how states administer programs and can either prevent or invite fraud. They assert that the Biden-Harris administration adopted Child Care and Development Fund rules that created vulnerabilities, weakening accountability and making fraud easier. Consequently, they say a proposed rule has been released to repeal those Biden-era mandates. The proposed rule is described as having three important elements. First, it ends the requirement that taxpayer dollars must pay for child care before services are provided, so states will no longer be forced to send payments to providers upfront. Second, it ends the enrollment-based billing mandate, allowing payments to be based on verified attendance rather than enrollment alone, so providers cannot bill for children who never show up. Third, it ends the mandate to pre-fund guaranteed seats at childcare centers without competition, thereby restoring parental choice and bringing back market incentives that reward legitimate, high-quality providers. Taken together, the changes are said to ensure that payments reflect real services and real attendance, making it far harder for fraudulent or nonoperational centers to game the system. The speakers claim that Biden administration policies effectively backed up a Brink’s truck and sent the security home across welfare programs, and that in childcare, this ends today. Produced by The U. S. Department Of Health And Human Services.

It's morning on March 15, and investigators are chasing a tip about a man leaving the country with a carry-on bag packed with a million dollars in cash. The claim is that he just cleared security with the cash, and that these cloak-and-dagger transfers happen almost weekly at MSP International. The money is reported to be headed to the Middle East, Dubai, and beyond, with sources saying last year more than $100,000,000 in cash left MSP in carry-on luggage. The reporters highlight Glenn Kearns as the national go-to expert on money transfers behind these mysterious movements. Kearns is a former Seattle police detective who spent fifteen years on the FBI's Joint Terrorism Task Force. He tracked millions of dollars in cash leaving flights from Seattle and found that the money came from hawalas—informal money-transfer networks used to send funds to countries with limited or no official banking systems. Some immigrant communities rely on hawalas to send money to relatives back home. Kearns discovered that some of the money was funneled to a hawala network in a region of Somalia controlled by the Al Shabaab terrorist group. The investigation raises a question: how could such large sums be transferred back home? The reporting notes that sources say the phenomenon is connected to welfare fraud and day care, suggesting a broader pattern behind the carry-on cash. To understand the link between day care fraud and the surge in carry-on cash, the reporters trace the crime's history in Minnesota. Five years earlier, Fox 9 investigators first reported that day care fraud was rising in the state. They exposed how some businesses exploited the system to steal millions in government subsidies intended to help low-income families with childcare expenses. The daycare fraud scheme works by centers signing up low-income families that qualify for childcare assistance funding. Surveillance videos from a case prosecuted by Hennepin County show parents checking their kids into a center and then leaving moments later, or sometimes with no children at all. Regardless, the center would bill the state for a full day of childcare. In summary, the report ties large cash transfers at MSP to hawalas and potential ties to terrorism financing, while framing a separate but connected pattern of crime: daycare centers billing for subsidized childcare in ways that enable significant fraud, thereby facilitating the movement and laundering of funds.