December 29, 2025 • 12 mins
-
Scale of Fraud:
- FBI Director Cash Patel confirmed that the fraud is extensive, describing it as “just the tip of a very large iceberg.”
- A single dismantled scheme tied to federal food aid programs amounted to $250 million, resulting in 78 indictments and 57 convictions.
- Broader estimates suggest fraud across multiple programs in Minnesota could total billions of dollars, including Medicaid, childcare assistance, and nutrition programs.
-
Nick Shirley’s Role:
- Shirley posted a 42-minute investigative video showing visits to licensed childcare centers that appeared inactive despite receiving millions in public funding.
- One center reportedly received $1.9 million in 2025 but had no children present.
- His video documented $110 million in questionable payments in a single day, sparking national outrage and tens of millions of views.
-
Political and Media Reaction:
- Figures like Elon Musk, JD Vance, and Rep. Tom Emmer amplified the story, calling for accountability.
- Criticism was directed at mainstream media for failing to investigate, and at Minnesota’s Democratic leadership, including Governor Tim Walz, for allegedly ignoring the issue.
-
Legal Consequences:
- Convicted fraudsters may face denaturalization and deportation in addition to prison sentences.
- The FBI has surged resources to Minnesota and considers dismantling these schemes a top priority.
-
Underlying Issues:
- Allegations that political interests and systemic failures allowed fraud to flourish.
- Claims that Minnesota has become a “magnet for fraud” and even developed a “fraud tourism industry.”
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
How much money have these childcare senator received?
Speaker 2 (00:04):
One of them received one point three million, and twenty
twenty one they got nine hundred and eighty seven thousand.
In twenty twenty two they got seven hundred and fourteen thousand,
and then the other one one point six zero four million.
In fiscal year twenty twenty five, fiscal year twenty twenty
four they got buddy hundred thousand, and twenty fiscal year
twenty twenty three, they got nine hundred and four thousand
(00:25):
and fifty nine dollars.
Speaker 3 (00:27):
This place, right here, you're listening to the forty seven
Morning Update with Ben Ferguson.
Speaker 1 (00:32):
Good Monday morning.
Speaker 4 (00:33):
Nice to have you with us on the forty seven
Morning Update, and we've got one.
Speaker 1 (00:37):
Big story for you.
Speaker 4 (00:38):
Minnesota's Somali fraud scandal has exploded over the weekend. Cashpittel,
the FBI director, is now threatening the Somali scammers with
not only denaturalization and deportation over the uncovered Minnesota fraud,
but he calls it the tip of a very large iceberg.
(00:59):
What's happening now?
Speaker 5 (01:00):
Now?
Speaker 1 (01:00):
I break it all down for you.
Speaker 4 (01:02):
It's the forty seven Morning Update, and it starts right now.
Speaker 3 (01:05):
Story number one.
Speaker 4 (01:06):
Minnesota's Somali fraud scandal has exploded, and now the FBI
Director Cash Ptel is confirming that the FBI has surged
personnel and investigative resources to Minnesota to dismantle the large
scale fraud schemes exploiting federal programs, describing the current events
(01:29):
as just a tip of a very large iceberg. The
new claim is hundreds of millions in fake daycares, your
tax dollars going to these centers, all of this being
exposed by a twenty three year old YouTuber who did
the job that no one in the media was willing
to do. Now, the Bureau says that it has identified
(01:53):
and dismantled a two hundred and fifty million dollar fraud
scheme tied to federal food aid programs, leading to seventy
eight indictments and fifty seven convictions. Caspertel also stated that
some convicted fraudsters are being referred for denaturalization and deportation
(02:17):
proceedings where eligible, signaling serious legal consequences beyond prison sentences,
and the broader scope of the fraud is now being exposed.
Federal prosecutors are now estimating the fraud across multiple programs
in Minnesota alone will total into the billions of dollars,
(02:38):
with part of the spotlight falling on social services, childcare assistance,
healthcare billing, and nutrition programs. In other words, if there
was a government program, it was being abused by the fraudsters.
Now the FBI is continuing, they say, an ongoing investigation,
(02:59):
and their expectations for more prosecutions and potential recoveries of
misused taxpayer funds. National figures including Elon Musk and political
leaders such as JD Vance and Representative Tom Emmer have
amplified the incredible undercover video that exposed all of this,
pushing for accountability and broader investigations into alleged misuse of
(03:24):
taxpayer funds. And it may not just be Minnesota where
the corruption is. Now we're saying that others are coming
forward and saying it could be happening in other states. Now,
how did we get to this point? Well, an independent journalist,
a hero by the name of Nick Shirley posted a
forty two minute investigative video on social media showing visits
(03:49):
to multiple licensed childcare centers that allegedly received millions and
millions of dollars in public funding, meaning taxpayer dollars, but
we're empty or inactive, or wouldn't even answer a question
on how he could enroll his son in daycare, including
the Minneapolis Quality Learning Center and one lightly shared scene,
(04:12):
Shirley highlighted that one center received roughly one point nine
million alone in twenty twenty five from the Minnesota Childcare
Assistants program, despite no children or activity being a parent
at the site during daytime visits. Shirley's video claims that
over one hundred and ten million in questionable payments were
(04:34):
documented in a single day of investigating, and that is
where the video went viral, garnering tens of millions of
views and sparking national outrage, particularly among conservatives and political
figures who share this footage saying it's time to clean house,
which brings us to cash PTEL. Now, when something like
(04:56):
this gets exposed, we're learning very quickly that the Trump
administration is willing to do what others were unwilling to
do in the Biden administration and what Democrats are unwilling
to do on their own in Minnesota. Here's more of
how Fox News covered it earlier and.
Speaker 5 (05:14):
Welcome back everybody. FAI Director Cash Mattel responding to a
viral video that has raised even more concerns about Minnesota's
massive fraud scandal. The video showing misspelled signs, locked doors,
empty classrooms even at a Minneapolis daycare center. Now the
state allegedly is also given the center millions in funding.
Connor Hansen Live in New York City was the latest
(05:35):
on that for us Hey, Connor.
Speaker 6 (05:37):
Hi Kevin Well. Four years now there have been allegations
of widespread fraud and investigations in Minnesota, but now there's
even more scrutiny following a new video that's gone viral
coming from an independent journalist visiting daycare centers in the
state that are receiving millions, apparently in tax dollars, with
no signs of children there.
Speaker 1 (05:58):
Take a look. Put my son into daycare here?
Speaker 2 (06:01):
No, no, no, I don't know.
Speaker 1 (06:02):
Can I speak to someone I don't know? No?
Speaker 6 (06:05):
Yeah, I would like to see if I can put
my son Joey here now. Twenty three year old journalist
Nick Shirley visited one business that couldn't even spell its
name correctly, with a sign saying leering center instead of learning.
Some had blacked out windows and most had no signs
of children there on a weekday. The viral video sparking
a strong reaction from Vice President jd Vance, who wrote,
(06:28):
politicians like it because they get power. Welfare cheats like
it because they get rich.
Speaker 1 (06:33):
But it's a zero.
Speaker 6 (06:33):
Sum game and they're stealing both money and political power
from Minnesota's Earlier this month, Minnesota's assistant US Attorney said
fraud involving Medicaid services likely reached more than nine billion dollars.
Speaker 1 (06:48):
Fraud is not small, It isn't isolated. The magnitude cannot
be overstated. It's a staggering, industrial scale fraud.
Speaker 6 (06:58):
The eye director of Cash Pattel just posted on x
saying that might just be the tip of the iceberg.
Despite mounting criticism aimed at him from the White House
and others, Governor Tim Walls has blamed Republicans for the
lack of a solution.
Speaker 7 (07:13):
Nobody in the legislature on the Republican side is interested
in solving this. Mike God, it would be the worst
thing in the world for them if this is solved
like we're doing it here early this year, because then
what are they going to run on?
Speaker 6 (07:24):
And we've reached down to Governor Wallace for comment on
that video, no response so far. Cash Battel also warning
that possible denaturalization and deportation proceedings could come from this.
Speaker 4 (07:36):
And this is exactly why the FBI Director cash Battel
not only came out but recognize that the ongoing fraud
scandal and folding in Minnesota involving these childcare centers, saying
it is a top priority of the FBI. This video
all from a journalist on YouTube, Nick Shirley, going viral
(07:57):
over the weekend because he did what the media refused
to do, which is the second part of this story
that everyone should be asking questions about. How is it
that a twenty something who has a YouTube channel did
more reporting on this fraud than the entire media conglomerate
of the United States of America combined. How is it
(08:21):
that he was able to go and confront employees at
these alleged learning centers in Minnesota receiving millions of dollars
in aid despite showing no signs of operational activity. How
is it that four million dollars of hard earned tax
dollars went to one center where they couldn't even spell
(08:43):
the word learning correctly? And how did the media not
do their job. The FBI Caspertel posted on x is
aware of the recent social media report in Minnesota. However,
even before the public conversation escalated online, the FBI had
surged personnel and investigative resources to Minnesota to dismantle the
(09:07):
large scale fraud schemes exploiting federal programs, fraud that steals
from taxpayers. The FBI director goes on to say, and
Rob's vulnerable children will remain a top FBI priority in
Minnesota and nationwide. Bettel then noted that the FBI dismantled
a two hundred and fifty million dollar fraud scheme that
(09:30):
stole federal food aid meant for vulnerable children during COVID say.
The investigation exposed sham vendors, shell companies, and large scale
money laundering tied to the Feeding Our Future network. The
case led to seventy eight indictments and fifty seven convictions.
Defendants included high level and high named individuals, each of
(09:55):
them charged for their roles ranging from wirefraud to money
laundering to conspiracy. Patel concluded that these schemes quote are
just the tip of the very large ice berg. The
assistant US attorney. By the way, Joseph Thompson also revealed
earlier this month at half of the eighteen billion in
(10:16):
federal welfare funds which support fourteen Minnesota run programs since
twenty eighteen, have been lost to fraud. Quote, Minnesota has
become a magnet for fraud, so much so that we
have developed a fraud tourism industry, people coming to our
state purely to exploit and defraud its programs. Thompson said,
(10:40):
this is deeply unsettling and a reality that all Minnesotans
should understand. So you go back to the big question,
how is it that one man was able to do
so much good? And how was it that the media
and the Democratic Party did nothing to stop it? Well,
it could be for two reasons. One, the media was
(11:01):
in on it. They knew there was reports of fraud,
and they deliberately chose to look the other way. Why
because much of that money was coming back to support
Democrats who were running for office and who had been elected.
There's also the other question, how much to Governor Waltz,
the former man who could have been one heartbeat away
(11:24):
from the presidency. What did he know and when did
he know it? And how involved was he and why
is he not doing more? You have to remember all
he's saying now is somehow this is the Republican's fault,
even though Democrats are in charge of every aspect of
the state of Minnesota. And he doesn't answer the question,
and he also doesn't seem to be angry at all.
(11:46):
He doesn't seem to care about the fraud, which brings
us back to exactly what Casptel said. Not only is
the FBI aware of the recent social media reports, but
we are dismantling large scale frauds and it's only the
tip of the iceberg.
Speaker 1 (12:03):
That's why Donald Trump put him in charge.
Speaker 4 (12:05):
And one thing's for sure, the President is honed in
on this fraud and gonna do everything he can to
stop it.
Speaker 3 (12:12):
Thank you for listening to the forty seven Morning Update
with Ben Ferguson. Please make sure you hit subscribe wherever
you're listening to this podcast right now and for more
in depth news, also subscribe to the Ben Ferguson podcast
and
Speaker 1 (12:26):
We will see you back here tomorrow.
How much money have these childcare senator received?
Speaker 2 (00:04):
One of them received one point three million, and twenty
twenty one they got nine hundred and eighty seven thousand.
In twenty twenty two they got seven hundred and fourteen thousand,
and then the other one one point six zero four million.
In fiscal year twenty twenty five, fiscal year twenty twenty
four they got buddy hundred thousand, and twenty fiscal year
twenty twenty three, they got nine hundred and four thousand
(00:25):
and fifty nine dollars.
Speaker 3 (00:27):
This place, right here, you're listening to the forty seven
Morning Update with Ben Ferguson.
Speaker 1 (00:32):
Good Monday morning.
Speaker 4 (00:33):
Nice to have you with us on the forty seven
Morning Update, and we've got one.
Speaker 1 (00:37):
Big story for you.
Speaker 4 (00:38):
Minnesota's Somali fraud scandal has exploded over the weekend. Cashpittel,
the FBI director, is now threatening the Somali scammers with
not only denaturalization and deportation over the uncovered Minnesota fraud,
but he calls it the tip of a very large iceberg.
(00:59):
What's happening now?
Speaker 5 (01:00):
Now?
Speaker 1 (01:00):
I break it all down for you.
Speaker 4 (01:02):
It's the forty seven Morning Update, and it starts right now.
Speaker 3 (01:05):
Story number one.
Speaker 4 (01:06):
Minnesota's Somali fraud scandal has exploded, and now the FBI
Director Cash Ptel is confirming that the FBI has surged
personnel and investigative resources to Minnesota to dismantle the large
scale fraud schemes exploiting federal programs, describing the current events
(01:29):
as just a tip of a very large iceberg. The
new claim is hundreds of millions in fake daycares, your
tax dollars going to these centers, all of this being
exposed by a twenty three year old YouTuber who did
the job that no one in the media was willing
to do. Now, the Bureau says that it has identified
(01:53):
and dismantled a two hundred and fifty million dollar fraud
scheme tied to federal food aid programs, leading to seventy
eight indictments and fifty seven convictions. Caspertel also stated that
some convicted fraudsters are being referred for denaturalization and deportation
(02:17):
proceedings where eligible, signaling serious legal consequences beyond prison sentences,
and the broader scope of the fraud is now being exposed.
Federal prosecutors are now estimating the fraud across multiple programs
in Minnesota alone will total into the billions of dollars,
(02:38):
with part of the spotlight falling on social services, childcare assistance,
healthcare billing, and nutrition programs. In other words, if there
was a government program, it was being abused by the fraudsters.
Now the FBI is continuing, they say, an ongoing investigation,
(02:59):
and their expectations for more prosecutions and potential recoveries of
misused taxpayer funds. National figures including Elon Musk and political
leaders such as JD Vance and Representative Tom Emmer have
amplified the incredible undercover video that exposed all of this,
pushing for accountability and broader investigations into alleged misuse of
(03:24):
taxpayer funds. And it may not just be Minnesota where
the corruption is. Now we're saying that others are coming
forward and saying it could be happening in other states. Now,
how did we get to this point? Well, an independent journalist,
a hero by the name of Nick Shirley posted a
forty two minute investigative video on social media showing visits
(03:49):
to multiple licensed childcare centers that allegedly received millions and
millions of dollars in public funding, meaning taxpayer dollars, but
we're empty or inactive, or wouldn't even answer a question
on how he could enroll his son in daycare, including
the Minneapolis Quality Learning Center and one lightly shared scene,
(04:12):
Shirley highlighted that one center received roughly one point nine
million alone in twenty twenty five from the Minnesota Childcare
Assistants program, despite no children or activity being a parent
at the site during daytime visits. Shirley's video claims that
over one hundred and ten million in questionable payments were
(04:34):
documented in a single day of investigating, and that is
where the video went viral, garnering tens of millions of
views and sparking national outrage, particularly among conservatives and political
figures who share this footage saying it's time to clean house,
which brings us to cash PTEL. Now, when something like
(04:56):
this gets exposed, we're learning very quickly that the Trump
administration is willing to do what others were unwilling to
do in the Biden administration and what Democrats are unwilling
to do on their own in Minnesota. Here's more of
how Fox News covered it earlier and.
Speaker 5 (05:14):
Welcome back everybody. FAI Director Cash Mattel responding to a
viral video that has raised even more concerns about Minnesota's
massive fraud scandal. The video showing misspelled signs, locked doors,
empty classrooms even at a Minneapolis daycare center. Now the
state allegedly is also given the center millions in funding.
Connor Hansen Live in New York City was the latest
(05:35):
on that for us Hey, Connor.
Speaker 6 (05:37):
Hi Kevin Well. Four years now there have been allegations
of widespread fraud and investigations in Minnesota, but now there's
even more scrutiny following a new video that's gone viral
coming from an independent journalist visiting daycare centers in the
state that are receiving millions, apparently in tax dollars, with
no signs of children there.
Speaker 1 (05:58):
Take a look. Put my son into daycare here?
Speaker 2 (06:01):
No, no, no, I don't know.
Speaker 1 (06:02):
Can I speak to someone I don't know? No?
Speaker 6 (06:05):
Yeah, I would like to see if I can put
my son Joey here now. Twenty three year old journalist
Nick Shirley visited one business that couldn't even spell its
name correctly, with a sign saying leering center instead of learning.
Some had blacked out windows and most had no signs
of children there on a weekday. The viral video sparking
a strong reaction from Vice President jd Vance, who wrote,
(06:28):
politicians like it because they get power. Welfare cheats like
it because they get rich.
Speaker 1 (06:33):
But it's a zero.
Speaker 6 (06:33):
Sum game and they're stealing both money and political power
from Minnesota's Earlier this month, Minnesota's assistant US Attorney said
fraud involving Medicaid services likely reached more than nine billion dollars.
Speaker 1 (06:48):
Fraud is not small, It isn't isolated. The magnitude cannot
be overstated. It's a staggering, industrial scale fraud.
Speaker 6 (06:58):
The eye director of Cash Pattel just posted on x
saying that might just be the tip of the iceberg.
Despite mounting criticism aimed at him from the White House
and others, Governor Tim Walls has blamed Republicans for the
lack of a solution.
Speaker 7 (07:13):
Nobody in the legislature on the Republican side is interested
in solving this. Mike God, it would be the worst
thing in the world for them if this is solved
like we're doing it here early this year, because then
what are they going to run on?
Speaker 6 (07:24):
And we've reached down to Governor Wallace for comment on
that video, no response so far. Cash Battel also warning
that possible denaturalization and deportation proceedings could come from this.
Speaker 4 (07:36):
And this is exactly why the FBI Director cash Battel
not only came out but recognize that the ongoing fraud
scandal and folding in Minnesota involving these childcare centers, saying
it is a top priority of the FBI. This video
all from a journalist on YouTube, Nick Shirley, going viral
(07:57):
over the weekend because he did what the media refused
to do, which is the second part of this story
that everyone should be asking questions about. How is it
that a twenty something who has a YouTube channel did
more reporting on this fraud than the entire media conglomerate
of the United States of America combined. How is it
(08:21):
that he was able to go and confront employees at
these alleged learning centers in Minnesota receiving millions of dollars
in aid despite showing no signs of operational activity. How
is it that four million dollars of hard earned tax
dollars went to one center where they couldn't even spell
(08:43):
the word learning correctly? And how did the media not
do their job. The FBI Caspertel posted on x is
aware of the recent social media report in Minnesota. However,
even before the public conversation escalated online, the FBI had
surged personnel and investigative resources to Minnesota to dismantle the
(09:07):
large scale fraud schemes exploiting federal programs, fraud that steals
from taxpayers. The FBI director goes on to say, and
Rob's vulnerable children will remain a top FBI priority in
Minnesota and nationwide. Bettel then noted that the FBI dismantled
a two hundred and fifty million dollar fraud scheme that
(09:30):
stole federal food aid meant for vulnerable children during COVID say.
The investigation exposed sham vendors, shell companies, and large scale
money laundering tied to the Feeding Our Future network. The
case led to seventy eight indictments and fifty seven convictions.
Defendants included high level and high named individuals, each of
(09:55):
them charged for their roles ranging from wirefraud to money
laundering to conspiracy. Patel concluded that these schemes quote are
just the tip of the very large ice berg. The
assistant US attorney. By the way, Joseph Thompson also revealed
earlier this month at half of the eighteen billion in
(10:16):
federal welfare funds which support fourteen Minnesota run programs since
twenty eighteen, have been lost to fraud. Quote, Minnesota has
become a magnet for fraud, so much so that we
have developed a fraud tourism industry, people coming to our
state purely to exploit and defraud its programs. Thompson said,
(10:40):
this is deeply unsettling and a reality that all Minnesotans
should understand. So you go back to the big question,
how is it that one man was able to do
so much good? And how was it that the media
and the Democratic Party did nothing to stop it? Well,
it could be for two reasons. One, the media was
(11:01):
in on it. They knew there was reports of fraud,
and they deliberately chose to look the other way. Why
because much of that money was coming back to support
Democrats who were running for office and who had been elected.
There's also the other question, how much to Governor Waltz,
the former man who could have been one heartbeat away
(11:24):
from the presidency. What did he know and when did
he know it? And how involved was he and why
is he not doing more? You have to remember all
he's saying now is somehow this is the Republican's fault,
even though Democrats are in charge of every aspect of
the state of Minnesota. And he doesn't answer the question,
and he also doesn't seem to be angry at all.
(11:46):
He doesn't seem to care about the fraud, which brings
us back to exactly what Casptel said. Not only is
the FBI aware of the recent social media reports, but
we are dismantling large scale frauds and it's only the
tip of the iceberg.
Speaker 1 (12:03):
That's why Donald Trump put him in charge.
Speaker 4 (12:05):
And one thing's for sure, the President is honed in
on this fraud and gonna do everything he can to
stop it.
Speaker 3 (12:12):
Thank you for listening to the forty seven Morning Update
with Ben Ferguson. Please make sure you hit subscribe wherever
you're listening to this podcast right now and for more
in depth news, also subscribe to the Ben Ferguson podcast
and
Speaker 1 (12:26):
We will see you back here tomorrow.
Host
Ben Ferguson
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