Influencer’s video steers conversation on fraud investigations in Minnesota, Somali Americans
An influencer’s YouTube video is stirring up conversations from Republicans and Democrats about Minnesota’s history with fraud and where the investigations stand. In the days since the video was published, federal officials have redirected immigration enforcement to some of those same businesses while others have dispelled a number of claims the influencer — Nick Shirley — made.
Shirley’s 43-minute YouTube video with a person identified as David showed the two walking around Minneapolis-St. Paul and going door-to-door at several Somali-owned daycares they claimed were committing fraud. His video drove sharp reaction and criticism of Minnesota officials for their supposed indifference to the $7 to $10 billion of alleged misuse of public funds.
The video caused people to call the Minneapolis child care centers and question the integrity of Somali-run businesses elsewhere in the country. It’s fueled several posts and comments from federal officials disparaging Somali Americans as Trump’s immigration enforcement in the Twin Cities continues.
“This jaw-dropping reporting is an indictment of both the national news media and feckless, dangerous office holders in Minnesota like Tim Walz, who have allowed these massive fraud schemes to occur for years,” House Speaker Mike Johnson, R-La., wrote on X in reply to Shirley’s video. “NO MORE.”
Shirley’s video prompted Homeland Security agents to visit several “suspected fraud sites” throughout Minneapolis. State officials have yet to publicly respond to the videos or claims Shirley brought up.
One child care manager, Zak Osman, told the Star Tribune that Shirley’s video caused the Minnesota Child Care Center to be bombarded with calls from people across the country talking about Rep. Ilhan Omar, D-Minn., and saying “give us our money back.”
Guerilla video creates controversy
Shirley nor his video partner detailed how they got numbers on the centers they visited nor which locations were under suspicion. No information was given on when in the year the two visited the centers, except with there being noticeable piles of snow.
“Where are the kids,” Shirley and the man often asked people at centers. Most declined to comment or told the two they didn’t know the answer.
Officers with the Minneapolis Police Department asked Shirley and David to leave a building for reports of harassment. In other parts of the video, a number of people asked the duo repeatedly to leave as they questioned the presence of children.
But as accusations went amok and spread to public officials, those in Minneapolis discredited Shirley’s rogue reporting. Several people noted that the state and federal law enforcement have long been investigating fraud allegations at child and adult care centers and health care providers.
Left-wing media personality Steven “Destiny” Bonnell II posted on X, accusing Shirley of visiting a center outside of operating hours, but didn’t disclose that in the video.
Tikki Brown, a Minnesota Department of Children Youth and Families commissioner, told Star Tribune reporter Deena Winter that none of the 10 centers Shirley visited had their payments paused. Several were, however, closed by the state. Brown noted the department is investigating all allegations.
The state is still investigating claims of fraud. The Griggs-Midway building in St. Paul, which Shirley featured, is under federal scrutiny for alleged misuse of Medicaid services. The building is home to 22 businesses that took in a combined $8 million in a 16-month period, which exceeded the expected cost of the state housing assistance program, the Star Tribune reported in July.
Walz’s office combats claims
Neither Minnesota’s Bureau of Criminal Apprehension nor the Office of the Inspector General at the Department of Human Services immediately responded to Straight Arrow News’ requests for comment.
Democratic Gov. Tim Walz’s office said in reply to a request that he had “worked for years to crack down on fraud” and requested more authority from the state legislature to take more aggressive actions. The office did not expand on what that action would have been.
“He has strengthened oversight – including launching investigations into these specific facilities, one of which was already closed,” the office said. “He has hired an outside firm to audit payments to high-risk programs, shut down the Housing Stabilization Services program entirely, announced a new statewide program integrity director, and supported criminal prosecutions.”
That’s partially true, as Walz on Dec. 13 announced a fraud prevention program that focused on groups who took advantage of pandemic relief programs. He appointed state judge Tim O’Malley to lead the program starting next month. The state is also working with Minnesota-based WayPoint to develop the program.
Fraud investigations ongoing since 2015
Fraud investigations in Minnesota aren’t new.
According to the Minnesota Star Tribune, fraud investigations into Minnesota’s funds that have been dispersed by the state Department of Human Services.
One investigation in 2015 centered around 10 day care operators who were accused of overbilling services to the state. A local news report from Fox 9 in 2018 revealed that about $100 million annually were being misused. The state’s Legislative Auditor said in 2019 it found no evidence to support claims of monetary support of terrorist groups in eastern Africa.
Unbiased. Straight Facts.TM
The Justice Department indicted Feeding Our Future in 2022 for allegedly misusing $250 million of pandemic relief funds.
And the largest scandal came from the Justice Department’s sweeping 47-person indictment against Feeding Our Future employees for misusing COVID-19 pandemic relief funds from the U.S. Department of Agriculture’s Federal Child Nutrition Program. It said the group exploited the U.S. Department of Agriculture’s pandemic-era policies that included relaxed requirements in the nutrition program. While Feeding Our Future’s alleged ringleader is white, many of the 47 accused are American citizens of Somali descent, according to PBS.
Feeding Our Future went from getting about $3.4 million in funds in 2019, to $200 million in 2021, the department said. Federal prosecutors said employees opened several Federal Child Nutrition Program sites throughout Minnesota that claimed to have served thousands of children a day shortly after creation.
The scheme involved elaborate shell companies for both enrolling in the program and allegedly laundering money from it and false documents to have the company appear as legitimate, the Justice Department said. The group allegedly pulled in more than $240 million of federal funds throughout the scheme.
“The defendants went to great lengths to exploit a program designed to feed underserved children in Minnesota amidst the COVID-19 pandemic, fraudulently diverting millions of dollars designated for the program for their own personal gain,” then FBI Director Christopher Wray said in the 2022 release.
FBI Director Kash Patel wrote on X Sunday that the bureau “had surged personnel and investigative resources to Minnesota” for prosecuting fraud schemes. His post didn’t note that the investigations started under Wray’s leadership.
The Star Tribune reported that Minnesota’s Education Department was a “ripe target for fraud” and was faulted by federal officials for lacking the necessary oversight to prevent misuse.
The publication also noted that a whistleblower attempted to get the Attorney General’s Office to investigate the group, but was referred to other state and federal agencies. They also learned Minnesota officials provided either little or no evidence to federal prosecutors for the group’s trial.
Court cases are still ongoing for many of the defendants, which has increased throughout the investigation.
Editor’s note: This story has been edited since initial publication to clarify the scope of the alleged fraud occurring at businesses in the Griggs-Midway building.
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Ella Rae Greene, Editor In Chief
