Kristi Noem announces 'massive investigation' into Minnesota alleged childcare and other frauds

WASHINGTON, DC: On Monday, December 29, Department of Homeland Security (DHS) Secretary Kristi Noem announced that federal agents were conducting a large-scale investigation into alleged childcare fraud in Minneapolis, Minnesota. 

The announcement followed a viral video report by a Youtuber Nick Shirley for his recent video alleging extensive fraud in local daycare centers.

Kristi Noem’s statement on the Minneapolis investigation

Noem stated that the agency’s Homeland Security Investigations (HSI) unit was on the ground pursuing what she described as a 'massive investigation on childcare and other rampant fraud.'

In a social media post on X, Noem said that 'Homeland Security Investigations @ICEGov are on the ground in Minneapolis right now' carrying out the operation. The statement also included a message, indicating that further updates were forthcoming, 'More coming.'

The statement was accompanied by a video showing two HSI agents questioning an individual outside a daycare center.

Noem’s post followed Shirley’s disclosure that he and his team had uncovered what he described as massive fraud in Minnesota. In the video, Shirley is shown visiting multiple daycare centers that had reportedly received millions of dollars in federal aid, despite showing no visible signs of children present.

Shirley is also seen visiting a 'Quality Learning Center' in South Minneapolis, reporting that the center hadn’t even spelled its name correctly on its sign, with 'learning' misspelled as 'learing.'

As he approached the facility, an unidentified woman yelled, “Don’t open up,” incorrectly claiming Shirley and the man with him were Immigration and Customs Enforcement (ICE) agents.

Details of the investigation and Tim Walz’s Response

According to CBS News, two DHS officials said that agents from US Immigration and Customs Enforcement’s Homeland Security Investigations branch were expected to inspect more than 30 sites in Minneapolis on Monday as part of the investigation.

DHS also posted videos showing HSI agents inspecting various locations, including at least one site that appeared to be a smoke shop. 

The DHS post emphasized the scope of the operation, stating, “DHS is on the ground in Minneapolis, going DOOR TO DOOR at suspected fraud sites. The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found.”

The post underscored the department’s focus and direction, stating, “Under the leadership of @Sec_Noem, DHS is working to deliver results.”

In response to the growing controversy and the viral reporting, the office of Minnesota Governor Tim Walz issued a statement defending the governor’s efforts against fraud.

A spokesperson said that Walz 'has worked for years to crack down on fraud' and had sought greater authority from the state legislature to take 'aggressive action.'

The spokesperson further claimed that Minnesota’s oversight had been strengthened, including investigations into specific facilities, one of which had already been closed as part of the state’s fraud-fighting efforts.