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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.

The speaker states that they are not saying the organization lost 85,000 children, but that contact was lost with them and their whereabouts are unknown. The speaker asks if that is a fair statement. The speaker asks if, after making three calls on average to check on 85,000 children placed by the organization, there was no response. The speaker then asks if it is fair to say that contact was lost with over 85,000 kids. The speaker asks for a yes or no answer. The speaker states that the organization does not know where 85,000 of the children are. The speaker then says they will move on after receiving no answer.

Abdi, running for Minnesota House District 14A, owns Blooming Kids Child Care. The speaker highlights a long list of alleged violations at Blooming Kids, including: - No first aid kits - Unsanitary conditions - Not complying with CPR regulations - No supervision for the kids - Not operating within the terms of their license - Never submitted their DHS background study when requested - Children subjected to prohibited disciplinary actions - No furnishings, no equipment, no materials, and no supplies - No documents to show that the teachers were qualified to do the job - Repeated violations: same violations happen over and over - No immunization records for any of the children - Not enough staff The speaker notes they cannot determine how much state or federal funding Blooming Kids receives because that information requires access they don’t have. Regarding campaign fundraising, the speaker checked Abdi’s campaign donations and states he is not getting any from any day care centers. The speaker concludes by asking someone to tag Nick Shirley, suggesting he should look into this issue as well.

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.

Official A states that in 2022, the office found that president Biden's DHS allowed some Afghans into the country before they were fully vetted, including one who had been liberated from prison by the Taliban. Official A notes that over 50 known or suspected terrorists had entered the United States as a result of Biden administration screening or lack thereof, and that last month the director of national intelligence said that 2,000 Afghans in America may have ties to terrorism. Official A asks whether a formal vetting process was in place, and asserts that the department did not have a formal process at the start of the OAW. Official A repeats the figure and corrects it to 36,000, calling it astounding. Official B replies that CARE, the Council on American-Islamic Relations, is the organization in question, stating that CARE was founded at a 1993 meeting and that they specifically state they are going to present themselves as a legitimate civil rights organization while furthering the mission of Hamas. Official A asks how much money CARE received from the federal government to shepherd Afghan parolees. Official B responds that CARE received $15,000,000 in California and more than $1,000,000 in Washington. Official A adds that when they check federal databases for CARE, they find nothing, and Official B explains that the money did not go directly from the federal government to CARE, but rather through an intermediary, and that this is how they’ve hidden the money. Official A states, “We need to find out where this money has gone. This is a scandal. This is corruption, and we've gotta figure out how taxpayer money has ended up in the hands of yet another organization terrorized.”

Prosecutors have identified billions in Medicaid fraud across 14 programs, and researchers have now found a fifteenth area: assisted living. In Minnesota, the assisted living program is expanding faster than other programs, with payments rising 10 to 15 times as fast. Data on area facilities show Minneapolis has 169, Saint Paul has 83 (population 307,000), Brooklyn Center has 106 (pop. ~30,000), and Brooklyn Park has 181 (pop. ~84,000), highlighting a higher concentration of facilities in smaller cities. The assisted living facility in question is housed in what appears to be a single-family home, yet it bills itself as an assisted living facility and receives substantial state funding. The facility is owned by Gandhi Mohammad, now Gandhi Abdi Qadai, through his LLC, and his wife runs the assisted living services. The state continues to pay while he awaits trial. The report notes that this man was indicted in the Feeding Our Future scam, which involved false billing, and asks why he is still receiving state funds through these facilities. Speakers discuss whether Feeding Our Future indictments should trigger a cross-check to prevent individuals involved in that scheme from receiving other state funds. One speaker asks, “Do you know the Feeding Our Future scandal?” and notes the lack of awareness among people being interviewed. It is stated that the man who owns the building was indicted in Feeding Our Future, and that his shell company was used to purchase a new assisted living facility property, with his wife operating the service provider side. The facility received over 2,300,000 in state money last year, and a Minnesota reformer article claims the person has been paid 49,000,000 since 2016. The interviewees question how it is possible that someone indicted in Feeding Our Future is still collecting checks from the state through these assisted living centers run by his wife. State Representative Kristen Robbins, chair of the House Fraud and Oversight Committee, expresses concern that basic due diligence was not performed to cross-check Feeding Our Future defendants against other state funding. The parties reached out to the man and his wife but have not heard back. They also contacted the Department of Human Services, which stated that they cannot cut funding from this person because he is “simply a landlord,” with his wife running the service provider arm of the facilities. The department’s position is described as passing the buck.

Speaker 0 raises the issue of leadership in Minnesota, noting that dozens of people have been charged and convicted for stealing millions of taxpayer dollars from government programs. The question is whether Governor Walls did enough to stop the fraud in the state, and whether Speaker 0 supports Walls’ decision not to run for reelection. Speaker 1 responds by crediting Governor Walls with achievements: Walls is the reason Minnesota has paid family leave and free school lunches. He notes that they have been through thick and thin together. Regarding fraud, Speaker 1 concedes that obviously everybody could have done more to prevent fraud, and he says that is a fair point to make. He points to current efforts, stating that Walls is setting up a whole bunch of infrastructure to do that. He affirms that the fraud is real and that it must be acknowledged. In terms of accountability, Speaker 1 emphasizes that when somebody commits fraud, there should be investigation, charges, prosecution, and, if appropriate, jail for the individual. He stresses that you do not hold an entire community accountable for the actions of individuals.

There's significant fraud in USAID, with radical groups receiving funds they don't deserve. A staggering amount, like a hundred million, is being misallocated. It's crucial to investigate the kickbacks associated with this spending. Who would invest such sums in questionable projects? It's likely that those who received the funds are not returning any to the government, indicating a high level of corruption. The key issue is understanding the extent of these kickbacks.

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.

Speaker 0 argues that Elon’s estimate of 20% of federal spending being part of a fraud camp could be higher, and when including state and local spending, the accounting suggests a sizable percentage of overall GDP is effectively theft through government agencies or checks. He predicts a “great uncovering” in 2026, with trillions of dollars of this behavior across the economy, and notes that on the other side, nothing will happen because the cost will be so significant it will feel like staring into the abyss. Speaker 1 asks how to differentiate between legal theft and illegal theft, noting that Somali daycares’ actions were outright fraud and illegal, while Stacey Abrams’s NGO receiving $2,000,000,000 late in the Biden administration is technically legal but clearly a different kind of theft and fraud. Speaker 0 responds with a test: “Would you throw up in your mouth when you heard the news? That’s the test. If you don’t pass the common sense vomit in the mouth test, it doesn’t matter whether it’s legal or illegal. It’s up. And you’ll realize that pretty quickly.”

The speaker describes a pattern they have observed with USAID and other organizations, where claims are made that a program will help children or contribute to disease eradication, yet the speaker encounters a persistent disconnect between those bold claims and on-the-ground reality. According to the speaker, whenever they request a direct connection to the children who are supposedly intended to benefit, they are met with silence or inaction. They ask for contact with a group of children so they can speak with them and understand more about the children’s issues, but they repeatedly receive nothing in response. The speaker emphasizes that there is even a reluctance to assemble a small, identifiable group of orphans or children in need to observe the situation firsthand. They question, essentially, why they cannot at least see a few kids or be allowed to meet the children who are presumed to be in trouble, along with their caregivers, to gain a clearer understanding of the situation. In expressing this frustration, the speaker articulates a broader concern about the process of aid delivery. They note a pattern whereby, despite assurances that aid is directed toward helping children, there is a systemic failure to provide access to the beneficiaries themselves. The speaker then characterizes this failure as part of a larger problem, describing “an enormous amount of fraud and graft.” They claim that a substantial portion of aid funds and efforts do not reach the children at all, or at the very least not in a meaningful or transparent way. The speaker asserts that, in their view, very little of the aid actually reaches the children, if anything at all, suggesting a misalignment between stated objectives and actual outcomes. Overall, the speaker conveys a strong perception of disengagement from the intended beneficiaries—the children and their caregivers—and ties this disengagement to allegations of misuse of resources. The core message centers on the request for direct access to the children and their caregivers to verify needs and outcomes, juxtaposed with a perception of widespread fraud and graft that prevents aid from reaching those it is intended to help.

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 argues that fraud and improper funding in Minnesota were not the result of isolated actions but involved coordination or complicity across multiple state agencies responsible for oversight. Five agencies are identified as responsible for fraud oversight and funding distribution, and the speaker asserts they should have detected the issues but did not. - Attorney General: Keith Ellison is named as having ties to the Muslim Brotherhood and as someone who “placates to the Somali populations for the votes,” with the speaker pointing to his district (District 5) as context for these claims. - Minnesota Department of Human Services (DHS): Shireen Gandhi is described as the temporary commissioner at the time of the discussion. Jodi Harpstead is noted as having left the position in early 2025. Harpstead’s prior background is highlighted: she took over in February 2019, and before that she was the president and CEO of Lutheran Social Services of Minnesota (LSS), an organization described as heavily involved in refugee resettlement and associated with relocation to areas with access to social programs. - Office of the Inspector General: James Clark is mentioned in connection with oversight. - Bureau of Criminal Apprehension (BCA): Drew Evans is identified as the superintendent, overseeing investigations into financial crimes and state program fraud. The speaker expresses a desire for raids by DOJ or FBI or other responsible entities to target these offices, suggesting that such actions would yield more findings. - Office of Legislative Auditor: Described as responsible for identifying fraud risks in state agencies and programs. - Minnesota Management and Budget (MMB): Erin Campbell is the commissioner, with a role focused on internal controls, financial operations, and fraud risk management. The speaker asserts that all five agencies should have detected the fraud but did not, claiming they were complicit. In addition, there is a call for federal investigations (DOJ, FBI) targeting these offices to uncover further activity. The discussion also links Jodi Harpstead’s leadership history to DHS and references Harpstead’s prior role at LSS, noting LSS’s involvement in refugee resettlement in Minnesota. Overall, the content presents a narrative of cross-agency responsibility for fraud oversight, highlighting specific individuals and alleging motives and ties, while urging external investigations to reveal additional findings.

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.

The investigation into fraud in public daycare subsidies is described as massive and deeply obstructed. "Massive. They don't want a fraud unit to do anything. They want a fraud unit on paper." The discussion centers on Halicki, who was fired in 2013 while in the midst of a large probe. The county’s account of Halicki is that he was an insubordinate bully whose tactics hampered efforts to catch welfare cheats, while supporters call the firing part of a broader effort to suppress accountability. One side frames the situation as a cover up: “They don't wanna point fingers at various organizations and people. This is nothing but a giant cover up.” The reporting highlights deco daycare centers, with evidence that the company collected millions in public subsidies for providing bogus child care services to low income families. The overarching assertion is that, in essence, this scheme was a criminal enterprise. In December, Ramsey County charged the owner of Dico with fraud. The daycares shown are described as billing the county at rates over $100,000 a month. Halicki says that before his dismissal he was tracking a similar scheme in Hennepin County involving multiple child care centers. One building is noted as housing its third daycare center in as many years, with a new license granted despite concerns. The two previous centers had their public subsidies stopped by the county because of billing irregularities. Halicki recounts footage of centers with questionable visibility: “7AM to 6PM. There are no lights on.” He and the team visited centers that had no signs outside and, during posted business hours, no one answered. They checked state inspection records for each center on Halecki's tour, finding licensing violations—the kind that are red flags to the state's Department of Human Services. The core accusation is that this is a deliberate attempt by officials in Hennepin County to deceive taxpayers. Halicki claims to possess emails and documents proving knowledge of the wrongdoing and deliberate inaction. He cites an email to the supervisor of the fraud unit where the stated goal was to stop the bleeding quickly and protect taxpayer money from going out the door; the supervisor replies with a plan to tackle the centers, and Halicki reiterates, “It's nothing but a giant cover up.” Officials emphasize that the focus is on prevention, but they do investigate and take action with the county attorney when fraud occurs. In the two years since Halicki was fired, not one case has been prosecuted by the county. The report notes that most metro counties aren’t actively investigating daycare center fraud; instead, they’re handing those cases off to a DHS special team that was ramped up more than a year ago. Public frustration is voiced: “Nobody is more frustrated with the amount of time it's taking than we are.”

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 first speaker contends that Congress is trying to give $5,000,000,000 of your money for refugee resettlement programs, and that money ends up in places like this. The second speaker identifies the International Rescue Committee as the largest refugee NGO in the country, noting that they get government funds and subcontract the work out to places like this. The first speaker describes the Somali American Community Center as a location that receives grants from the IRC in order to help refugees resettle in America. The second speaker reports that when they went in, they found this: an almost completely abandoned retail space that hasn’t filed taxes in almost ten years. The first speaker states that almost every business in the area is focused on getting refugees on taxpayer funded welfare programs. The second speaker asserts that this is how the largest refugee city in the country is funded. The first speaker adds that this is how over 87% of Somali immigrants end up on taxpayer funded public assistance. The second speaker notes that they spent three days in Little Somalia in Atlanta, Georgia. The first speaker concludes by saying that in the largest refugee center in the entire country, this is what they found.

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.

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.