Front Companies? Bombshell Report Exposes Network Of Somali-Linked “Empty” Daycares Across Minnesota

Left-wing Governor Tim Walz, under intensifying federal pressure, faces a widening Somali-linked fraud scandal in Minnesota. Federal prosecutors state that the scheme currently totals at least $9 billion, with the final figure potentially much higher. Recent reporting by Ryan Thorpe and Christopher F. Rufo alleges that some welfare funds were funneled into an overseas terrorist organization. Now, a bombshell video from a citizen journalist suggests the fraud extends beyond Medicaid into the state’s daycare system.

A 42-minute bombshell video by journalist Nick Shirley and a local private investigator documents an on-the-ground investigation in Minneapolis that alleges massive, ongoing fraud in government-funded social services. The main focus is on Somali-owned businesses in child daycare, adult/autism care, home healthcare, and non-emergency medical transportation programs that draw from the taxpayer-funded Child Care Assistance Program.

Shirley claims his team uncovered more than $110 million in questionable payments to Somali-owned businesses on just the first day of their investigation, as part of a broader welfare fraud scandal totaling upwards of $9 billion.

Shirley and the investigator visited several childcare facilities that had no visible children, toys, or activities during peak hours. Staff could not answer basic questions about rates or licenses. Both were denied entry to the reception areas of these facilities:

  • Quality Learing Center: Licensed for 99 children; received $4 million over two years. Sign misspells “learning” as “learing”; no children visible, doors locked, no playground.
  • Future Leaders Early Learning Center: Licensed for 90 children; received $6.67 million over two years. Facility empty; staff evasive when asked about child numbers.
  • Mako Child Care and Mini Child Care Center (combined): Licensed for 120 children; received $1.3M (2020), $987K (2021), $714K (2022), $1.6M (2025). No children observed.
  • ABC Learning Center: Licensed for 40 children; nearly $3 million over three years. Blacked-out windows, no activity.
  • Sweet Angel Child Care: Licensed for 74 children; $1.26 million in 2025 alone.

Millions of taxpayer dollars went to one daycare company that could not even spell “learning” correctly…

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Minnesota Lt. Gov. Peggy Flanagan wears hijab in solidarity with Somalis as feds probe multibillion-dollar fraud scandal

Minnesota’s lieutenant governor Peggy Flanagan donned a hijab to express solidarity with Somalis in a local TV appearance amid federal and congressional investigations into fraudsters in their refugee community who bilked taxpayers out of as much as $9 billion.

“I am incredibly clear that the Somali community is part of the fabric of the state of Minnesota,” Flanagan said at Karmel Mall in Minneapolis alongside local officials in a video released by Somali TV of Minnesota on Thursday.

“I am here shopping today and just encourage other folks to show up, support our Somali businesses, support our immigrant neighbors, and I know that things are scary right now,” added Flanagan, a Catholic, while wearing the Islamic head covering.

House Majority Whip Tom Emmer (R-Minn.), also a Catholic, fired back in a statement about Flanagan’s appearance that “anyone with common sense sees right through this stunt.”

Minnesota Gov. Tim Walz and Minneapolis Mayor Jacob Frey also held a news conference Tuesday denouncing the Trump administration’s immigration crackdown in the Twin Cities — including at Karmel, where Immigration and Customs Enforcement (ICE) agents reportedly detained four on Monday.

The US Treasury Department and a powerful House committee are currently probing Somali-linked organizations and other nonprofits in the state accused of defrauding taxpayers out of around half of the $18 billion in federal funding provided to Minnesota since 2018.

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Minn.’s Somali social-services scammers may have stolen $9 billion — nearly Somalia’s entire economy

A staggering $9 billion may have been stolen in Minnesota’s sprawling social-services scam orchestrated mainly by members of its Somali community — a figure nearly equivalent to the entire economy of Somalia.

The enormous new estimate is a nearly nine-fold increase from the swiped $1 billion previously suspected, according to federal prosecutors.

It also accounts for roughly half of the $18 billion in total federal funds provided to the Minnesota-run services since 2018, the feds said — as Democratic Gov. Tim Walz continues to take heat for his handling of the debacle.

By comparison to the $9 billion figure, Somalia’s entire GDP was under $12 billion last year, according to the World Bank.

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Somali fraud scheme exposes billions siphoned from US, one state set to crack down

The Somali immigrant fraud scandal in Minnesota has put an uncomfortable spotlight on foreign remittance payments schemes that siphon billions of dollars a year from America to overseas. Although national attention has been focused on Minnesota, another state is poised to launch a crackdown.

Missouri State Treasurer Vivek Malek told Just the News he is teaming up with the state legislature to impose new requirements that remittance payment businesses ensure that customers are lawfully in the United States before they can send money to foreign countries, and he hopes other states will follow suit.

Cutting off incentives for illegal immigrants

“Missouri is stepping up by cutting off one of the biggest remaining incentives for illegal immigration, which is unverified foreign money transfers, because the economy is something that drives everybody to come to the United States,” Malek said in a wide-ranging interview with the John Solomon Reports podcast this week. 

Malek said his research found that more than $200 billion leaves the United States annually through remittances, with Mexico alone receiving over $52 billion. Some sizable portion of that involves illegal immigrants, most of whom crossed the border during the Biden years.

“It has been found that at least $4.4 billion in remittances sent to Mexico have been tied to cartel money laundering through small wire transfers,” he said. “Cartels don’t sneak money across the border or throw the bag across the border. They wire it. And if we are serious about crushing cartels, we have to shut down their financial arteries.”

Malek, a lawful U.S. immigrant who worked 16 years to become a U.S. citizen, ran last year for the state treasurer’s job on a promise he would help President Donald Trump end the scourge of illegal immigration. Part of that effort includes stopping illegal immigrants from sending money overseas that they earned in the U.S. without paying taxes, he said.

“I’m making this distinction very clear: legal versus illegal immigration. I am all for legal immigration. I am not for illegal immigration. And what we saw is the diversity of the last four years, during the Biden administration, the floodgates were open on the southern border,” he explained.

The House Committee on Oversight and Accountability, in conjunction with the House Committee on Homeland Security, reports that over 1.7 million known “gotaways” — illegal immigrants who have evaded Border Patrol — are now living in the interior of the United States without documentation and without having undergone any vetting by immigration officials. 

“We did not know who entered, who came, and then these people are working here. They undercut the paychecks of American citizens, and then we are just left with a bill on our hands, and then, without paying any taxes. This money is going out of the country [but] we do not know to where,” Malek added.

Just the News first reported in August 2024 that on Minnesota Gov. Tim Walz’s watch, hundreds of millions of taxpayer dollars were defrauded from social safety net programs intended to feed the hungry or help families with autistic children, with the perpetrators often being Somali immigrants in that state.

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Far-Left Minneapolis Mayor Jacob Frey Says ICE Agents May Get “Killed” if They Continue Raids in His City

Minnesota Democrats are lashing out at the Trump Administration for surging the state with ICE agents.

Failed Governor Tim Walz, radical Marxist Minneapolis Mayor Jacob Frey and others gathered at the Shiloh Temple this week to defend the illegal aliens in their state living off the largess of the taxpayers.

Walz accused federal agents of political theater.

“When law enforcement is driven by profiling or intimidation, it undermines all the trust in the community. It makes us less safe, and it pulls resources away from doing the real work of crime,” Governor Tim Walz said.

“Minnesota is not going to play along with their strategy. We will not allow our communities to be used as political theater for their personal benefit,” Walz added.

Far-left Minneapolis Mayor Jacob Frey is under fire for saying ICE agents may die if they continue to conduct immigration raids in his city.

“I am increasingly concerned because of the chaos that is being caused by these ICE agents that somebody is going to get seriously injured or killed,” Jacob Frey said.

“Somebody is going to get seriously injured or killed, and whether that is an ICE agent or a community member, we all know the tinder box that could explode because of it,” he added.

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Whites Protected by Employment Discrimination Laws

Assistant Attorney General Harmeet Dhillon told Newsmax on Wednesday that Minneapolis Public Schools will learn they cannot discriminate against white people.

The Department of Justice’s civil rights division, which Dhillon leads, is suing Minneapolis Public Schools, accusing them of imposing race-, sex-, and national origin-based preferences in hiring, layoffs, reassignments, and reinstatements in violation of Title VII of the Civil Rights Act.

Dhillon noted on “Carl Higbie FRONTLINE,” that it has always been against the law to discriminate based on skin color, even against white people.

“The Department of Justice was never run before by an administration that cared about protecting the rights of all Americans,” Dhillon said.

“And yes, white Americans and men are protected by our employment discrimination laws.”

The complaint filed by DOJ says that since July 2021, the district has enforced collective bargaining provisions that intentionally favor “underrepresented” teachers — defined as Black, Indigenous, and other people of color — over white and Asian teachers.

According to the lawsuit, the 2021-2023 and 2023-2025 collective bargaining agreements required Minneapolis administrators to override standard seniority rules during layoffs and involuntary reassignments when a teacher was deemed “underrepresented.”

In those cases, district officials were instructed to skip the protected teacher and instead excess or reassign a “nonunderrepresented” teacher with more seniority.

“When we see egregious examples like paint-by-numbers and color-by-numbers, hiring in Chicago and Minneapolis, we open investigations,” Dhillon said.

“When we gather the evidence; we file lawsuits,” she added.

“This is a very clear case of not only disparate impact run amok but the types of affirmative action we are not having anymore in this country.”

“Disparate impact, DEI, that’s all over from the federal government’s perspective,” Dhillon concluded.

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Former Minnesota Rep. Melissa Hortman’s Murder Is Now Very Suspect After Uncovering the Massive Fraud in Tim Walz’s State

The murder of former Minnesota House Speaker Melissa Hortman and her husband is very suspect since the massive scandal in Minnesota involving the state’s social programs was uncovered. 

It looks like Democrat Melissa Hortman knew she was in big trouble when she was the only Democrat to vote against Tim Walz’s healthcare for illegals bill in Minnesota. She cried as she shared her position and admitted to stepping outside the Democrat initiated corrupt fence. “It’s almost like she knew what would happen next.

The former Minnesota Representative was gunned down with her husband days later.  The DOJ reported the following after they arrested the alleged murderer of Minnesota’s former congresswoman.

Vance Boelter, 57, has been indicted on six federal charges in connection with the stalking and murders of Minnesota House of Representatives Speaker Emerita Melissa Hortman and her husband Mark Hortman, the stalking and shooting of Minnesota State Senator John Hoffman and his wife Yvette Hoffman, and the attempted shooting of their daughter Hope Hoffman, announced Acting U.S. Attorney Joseph H. Thompson.

“Vance Boelter planned and carried out a night of terror that shook Minnesota to its core,” said Acting U.S. Attorney Joseph H. Thompson. “He carried out targeted political assassinations the likes of which have never been seen in Minnesota. We grieve with the Hortman family and continue to pray for the recovery of the Hoffmans. Today, a grand jury indicted Boelter with the most serious of federal charges for these heinous political assassinations. Let me be clear: Boelter will see justice.”

According to court documents, after extensive research and planning, Boelter embarked on a murderous rampage targeting Minnesota’s elected officials and their families. On June 14, 2025, the defendant disguised himself as a member of law enforcement and traveled to the homes of Democratic elected officials with the intent to intimidate and murder. Early that morning, the defendant traveled to the Hoffmans home in Champlin, Minnesota. By posing as a police officer, Boelter compelled the Hoffmans to answer their door. He then repeatedly shot Senator Hoffman and Yvette Hoffman and he attempted to shoot their daughter, Hope Hoffman.

The Gateway Pundit reported that the suspect in the shooting, Vance Luther Boelter, 57, was appointed by Walz in 2019 to serve on the Governor’s Workforce Development Board, and he also leads an international security firm.

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Pandering to Illegal Aliens, Police Chief Plays the “Joseph, Mary, and Jesus Were Refugees” Card

’Tis the season to…use the Christmas story for political gain?

We’ve heard the line repeatedly. Somehow, we’re not supposed to secure our borders in 2025 and deport invaders because 2,000 years ago the Holy Family were “refugees.” Just today, for example, Newspeak Newsweek wrote that “it’s worth remembering that Jesus began life as a refugee.” (And, apparently then, it’s worth forgetting that we have immigration laws.)

Another example is Minneapolis Police Chief Brian O’Hara. Bothered that Immigration and Customs Enforcement (ICE) is enforcing immigration law in the Mini Apple, he likened Somali criminals’ plight to the Holy Family’s. Whether or not the chief believes that President Donald Trump is now a Herod targeting all Minneapolis Somali boys two years old and younger was not reported.

A Stable for Mohamed?

What is certain is that this is true to form for O’Hara. For example, on November 20, he apologized for talking about crime by “groups of East African kids” (itself a euphemism). This isn’t because the criminality is imaginary, but because of the Third Woke Commandment. To wit: “Thou shalt not speak of crime when thy perpetrators be swarthily complected.”

As for the current story, The Western Journal wrote Sunday:

ICE surged dozens of agents into the Minneapolis area to target illegal immigrants from Somalia after revelations of at least $1 billion in welfare fraud emerged, with the Treasury Department investigating allegations that proceeds from the scheme went to the radical Islamic terrorist group Al-Shabaab.

Not to worry, though, O’Hara assured us at a recent press conference. His police won’t ask about immigration status. Whether or not laws are only meant for citizens, the chief did not say.

The Journal continued:

“We know this has been a very, very difficult time for our communities here in the city. The fear that people are experiencing is real,” O’Hara said.

… “It’s especially personal to me, having been raised a Catholic, to be in a Christian church this morning as we are approaching Christmas,” O’Hara continued. “And I cannot help but think of what is happening in our city today and how that echoes with how outsiders have been treated for thousands of years, how Mary and Joseph themselves were considered outsiders and forced to stay in a barn. That’s what we’re getting ready to commemorate as Christians around the world while all of this fear is happening right here in our town.”

The chief can be seen on X making his remarks.

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Minnesota Dem Tearfully Apologizes To Somalians After They Were Busted Stealing Billions

A Minnesota Democratic state senator apologized to the state’s Somali population following allegations that Somalis were responsible for committing billions in fraud.

Organizer Asad Aliwed put together the event Dec. 12 at the Irshad Islamic Center in Eden Prairie, Minnesota, Eden Prairie Local News reported. Democratic state Sens. Ann Johnson Stewart and Steve Cwodzinski tearfully shared their apology and offered support to a mosque full of Somalians on Friday. They were accompanied by Eden Prairie Mayor Ron Case, who ran in a nonpartisan election.

“We are heartbroken by the horrible actions of our government, and we want you to know that at the state level, we will do all that we can to support you,” Stewart could be heard saying in a video shared by Somali TV of Minnesota.

“Whether you live in our district or not, we are here,” Stewart said through tears. “We are 100% committed to helping you. You are welcome here, you belong here and we are here for you. I apologize, I have to leave for another commitment.”

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SBA HALTS $5.5 MILLION in Funding to Minnesota After Explosive Findings Tie Somali Fraud Ring to Millions in PPP Loans

The Small Business Administration (SBA) has halted more than $5.5 million in annual federal funding to Minnesota after explosive findings revealed that individuals tied to the infamous $1 billion Somali fraud scheme also received millions in taxpayer-backed Paycheck Protection Program (PPP) loans.

SBA Administrator Kelly Loeffler announced the funding freeze Tuesday in a scathing post on X, directly notifying Democrat Governor Tim Walz that his state can no longer be trusted with federal tax dollars.

Loeffler wrote on X:

Today, I informed Governor Tim Walz that SBA is halting $5.5 million in annual funding to Minnesota pending further review.

This action follows alarming findings: individuals indicted in the $1 billion Somali fraud scheme also received at least $3 million in PPP loans, and SBA has since identified 13,600 additional PPP loans in Minnesota – totaling $430 million – suspected as fraudulent.

With dozens of investigations underway, the conclusion is unavoidable: Minnesota cannot be trusted to administer federal tax dollars. Its socialist welfare system has enabled fraud at industrial scale, at the expense of honest Americans – and these are the consequences.

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