A key whistle-blower, and one of the first to draw attention to what he believed was widespread fraud in the Minnesota welfare system, says that state officials hampered probes into the allegations over concerns about pressure from the state’s Somali immigrant community.
That community has been at the center of recent welfare fraud accusations, including the Feeding Our Future fraud case, in which prosecutors say more than 70 defendants — most of them part of Minneapolis’ Somali community — were charged in connection to a $250 million pandemic-era fraud on a state-funded meals program for children.
Last year, new charges in the Feeding Our Future case sparked renewed interest in the state’s federally-funded daycare program. Independent journalists flocked to Minneapolis and recorded videos of empty daycare centers that had received millions in state grants.
“It was obvious that they were committing fraud”: DHS investigator
But, concerns about Minneapolis daycare centers go back at least a decade, according to the whistle-blower, Scott Dexter, who worked as an investigator at the Minnesota Department of Human Services (DHS) from 2013 to 2019. He told Just the News that his team uncovered evidence of fraud in the state’s taxpayer-funded daycare system almost immediately after he started his work.
“The very first [daycare] that we investigated […] had received about $3.75 million in one year, and so it was obvious that they were committing fraud,” Dexter told the Just the News, No Noise TV show on Tuesday.
“And the number of these childcare centers would be owned by the same owners, or there’d be, you know, intertwined people involved in it. So one daycare center was involved with another daycare center, so it was obvious that it was a coordinated fraud scheme,” said Dexter.
In his testimony before the House Judiciary Committee earlier this year, Dexter said that he was hired after a 28-year law enforcement career to be part of a new investigative unit in the Office of the Inspector General at the Minnesota DHS tasked with identifying fraud in the state’s Child Care Assistance Program (CCAP).
Dexter testified that what his team uncovered was “deeply concerning” regarding daycare centers operating out of commercial spaces “with windows covered, no visible play areas, and very few children ever present.” After reviewing records and surveilling locations, they found “documented patterns of overbilling, nonexistent attendance, and in some cases, children being signed in for hours they were never actually at the center.”
Hellbound and Down 
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