Federal authorities are cracking down on fraud in Minnesota, where fraudsters have allegedly stolen billions of federal dollars intended for childcare and vulnerable citizens. The investigation follows a viral video alleging misuse of funds by Somali-run childcare centers. The government has implemented stricter verification processes to ensure funds are properly allocated.
by CORY SMITH | The National News DeskFILE - A sign is shown as first Assistant U.S. Attorney Joseph H. Thompson, not seen, delivers remarks during a news conference at the U.S. Attorney's Office inside the United States Courthouse on Thursday, Dec.
18, 2025, in Minneapolis. Authorities say fraudsters have claimed billions of federal dollars in Minnesota, taking money meant to care for children and other vulnerable citizens.Federal officials say their efforts are targeted specifically at bad actors to protect both taxpayers and kids. O’Neill announced that they’ve “turned off the money spigot” amid suspicions of extensive fraud in the state. Assistant Secretary Alex Adams, who oversees the Administration for Children & Families, an operating division of HHS, said his office provides Minnesota $185 million in childcare funds each year. “Let me be crystal clear, ACF expects every state to uphold the highest standards of oversight, monitoring, and accountability for federal dollars. Minnesota is no exception,” Adams said in a video alongside O’Neill. Suspicious childcare operators will go through extra layers of verification before new funds are released. HHS is asking the state for details like attendance records, licensing, inspections, monitoring reports, complaints and more. An HHS spokesman said the agency has a clear duty to verify the proper use of taxpayer funds. A new, more stringent verification process exists to rule out fraud and confirm that funds are supporting legitimate childcare providers. The crackdown comes days after YouTube personality Nick Shirley posted a video that’s gone viral, allegedly showing Somali-run childcare centers that are pulling in big bucks from the government without actually serving any children.The next day, DHS said in a video post, “Our investigative agents are conducting a massive operation to identify, arrest, and remove criminals who are defrauding the American people. We will root out this rampant fraud plaguing Minnesota." Patel said the FBI dismantled a $250 million fraud scheme that stole federal food aid meant for vulnerable children during the pandemic. Patel said that case led to 78 indictments and 57 convictions. “The FBI believes this is just the tip of a very large iceberg,” Patel said via X. “We will continue to follow the money and protect children, and this investigation very much remains ongoing." The video was shared by both Vice President JD Vance and billionaire Elon Musk, the former head of the Department of Government Efficiency.“How do I know that they're true?” he told CNN. “Well, ... we showed you guys what was happening, and then you guys can go ahead and make your own analysis.” First Assistant U.S. Attorney Joe Thompson also said the state had flagged 14 high-risk Medicaid programs, suspended payments for those programs and ordered a third-party audit. First Assistant U.S. Attorney Joe Thompson said those 14 programs in Minnesota have cost $18 billion since 2018, and he said there’s reason to believe that more than half of that amount was fraudulent. “The fraud is not small. It isn't isolated. The magnitude cannot be overstated,” Thompson said during a news conference. “What we see in Minnesota is not a handful of bad actors committing crimes. It's a staggering industrial-scale fraud. It's swamping Minnesota and calling into question everything we know about our state.” One of the newest defendants received $6 million in Medicaid funds based on fraudulent claims to a program meant to provide one-on-one therapy to children with autism, Thompson said. Abdinajib Hassan Yussuf, 27, allegedly paid kickbacks to parents in the Somali community to have their children diagnosed with autism spectrum disorder and enroll in his program. Two other defendants in a Housing Stabilization Services fraud scheme allegedly came from Philadelphia to pluck $3.5 million in fraudulent Medicaid payments from Minnesota because they heard it was “easy money,” Thompson said.“This is exactly the type of strong action we need from prosecutors to ensure fraudsters are put behind bars,” Walz said in a news release. “This infuriating greed and criminal activity is why we took action earlier this year to shut down Housing Stabilization Services and hired an outside firm to audit these programs and stop payments to fraudulent providers. We will not tolerate fraud, and we will continue to work with federal partners to ensure fraud is stopped and fraudsters are caught.” Minnesota has ordered an audit and pause of payments for the 14 high-risk Medicaid programs tied to the federal investigation and shut down HSS entirely, created a centralized fraud investigations unit within its Bureau of Criminal Apprehension, established a statewide Inspector General Coordinating Council to improve cross-agency collaboration, and more to fight fraud, the governor’s office said.Comer called on Walz and Minnesota’s attorney general to provide documents, communications and records about what he called widespread fraud under their watch.Abdirashid Bixi Dool falsely claimed to be serving over 40,000 meals to children every week, submitted fraudulent invoices, and came up with lists of fake children he was feeding, according to prosecutors. Between March 2021 and February 2022, Dool’s organizations received about $1.1 million in Federal Child Nutrition Program funds from Feeding Our Future. Dool and a conspirator laundered most of the taxpayer dollars to their families and to themselves, prosecutors said. Federal prosecutors in Minnesota have charged dozens of individuals with stealing more than $240 million from the Federal Child Nutrition Program through the Minnesota-based nonprofit Feeding Our Future.President Donald Trump accused Walz of allowing Minnesota to become “a hub of fraudulent money laundering activity."in a Truth Social postA new law going into effect on New Year’s Day will restrict people convicted of extreme DUI offenses from buying alcohol.Four people were admitted to Utah Valley Hospital after an Arizona man allegedly assaulted them with a pocket knife in a Provo parking lot.Provo Police spokespThe Kyle Whittingham era at Michigan is underway and reports suggest he is bringing along some familiar faces.A van rolled onto its roof while taking the on-ramp from Interstate 80 to Interstate 215 in Salt Lake.The Utah Department of Transportation first reported theRapper NBA YoungBoy was a passenger in a vehicle stopped along Interstate 15 for illicit drugs.Utah Highway Patrol troopers did not arrest or charge the rapper,
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