Minnesota officials and Somali community representatives are scrambling to downplay explosive allegations of large-scale daycare fraud after a viral investigative video raised new questions about state-funded child care centers.
The allegations are prompting emergency press briefings, defensive explanations, and assurances that regulators had seen no wrongdoing.
The controversy centers on footage released by independent journalist Nick Shirley, who visited several Somali-run daycare facilities in Minnesota, including the Quality Learning Center in Minneapolis.
As Slay News reported, the facilities appeared largely inactive despite receiving millions in taxpayer-funded child care assistance.
Notably, the Quality Learning Center even mispelled its own name as “Quality Learing Center.”
The ghost “daycares” are believed to be part of a massive multi-billion-dollar fraud scam led by members of the Somali immigrant community in Minnesota and several other states.
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The video sparked national outrage over the weekend and renewed scrutiny of Democrat Minnesota Gov. Tim Walz’s administration, which has previously faced allegations of welfare fraud tied to state-funded programs.
At a hastily arranged news conference Monday, Minnesota Department of Children, Youth and Families Commissioner Tikki Brown acknowledged the political fallout and said state regulators were now conducting additional unannounced inspections — even as she defended earlier reviews and urged skepticism toward the video.
“We are aware of a video that’s being circulated that has gained local and national attention about child care centers in Minnesota,” Brown said.
“While we have questions about some of the methods that were used in the video, we do take the concerns that the video raises about fraud very seriously.”
Brown repeatedly claimed that prior inspections had found children present and no verified fraud, a statement critics say underscores how regulators may have missed glaring red flags.
“None of those investigations uncovered findings of fraud,” Brown said, adding that payments to the facilities have not been paused.
Despite public backlash and the scale of allegations, the state is still allowing taxpayer money to flow to the phony organizations.
Brown also suggested the video may have been filmed outside normal hours, signaling what appeared to be an effort to cast doubt on its credibility.
State officials, however, confirmed that new site inspections are underway, an acknowledgment that earlier oversight may not have been sufficient given the seriousness of the allegations.
Daycare Manager Pushes Back, Says Video Misrepresented Operations
Ibrahim Ali, the manager of Quality Learning Center and a representative of the Somali community, forcefully rejected the accusations.
He is insisting the business was filmed outside operating hours and accused Shirley of reporting “false information.”
“There’s no fraud going on whatsoever,” Ali said.
“Kids come to us, clients come to us, their parents come to us – they’re here daily, they leave on time, they come on time.
“There is no fraud going on whatsoever.”
Ali said the center operates Monday through Thursday from 2 p.m. to 10 p.m. and disputed claims that the center had closed or suspended operations.
“We haven’t closed. We’ve never closed,” he said.
“There was never a time where kids were told to stop coming.
“There was never a time we told our employees to stop coming.
“All that is false information.”
Ali also accused critics of unfairly associating the controversy with the Somali community.
“Are you trying to record that we’re doing fraud, or are you trying to put the Somali name and the fraud in the same sentence?” Ali said.
“That’s what really hurt us the last couple of days.”
Ali did not provide any evidence to support his claims about Shirley’s reporting or the alleged operations of the daycares exposed.
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Viral Video Shows Empty Facility Receiving Millions
Shirley’s 42-minute investigation, posted Friday on X and YouTube, showed multiple facilities appearing inactive, including one with a sign misspelling “Quality Learning Center” as “Quality Learing Center.”
One fraudulent business in Minnesota that misspelled “learning” on its building received $1.9M this year while masquerading as a daycare.
There are not enough words to describe the breathtaking failure that has happened under the watch of @GovTimWalz. pic.twitter.com/jKorqta5ZU
— Secretary Linda McMahon (@EDSecMcMahon) December 28, 2025
The facility reportedly receives taxpayer funding while accounting for 99 enrolled children.
During a Fox News appearance Sunday, Shirley said the situation was so blatant that “a kindergartner could figure out that there is fraud going on.”
He also argued that other journalists have avoided the story out of fear of being labeled “Islamophobic” or “racist.”
“Fraud is fraud, and we work too hard simply just to be paying taxes and enabling fraud to be happening,” he said.
Political Fallout Continues to Escalate
The video triggered an immediate wave of criticism toward Gov. Walz and Minnesota regulators, with high-profile figures, including Vice President J.D. Vance, Rep. Mike Lawler (R-NY), Donald Trump Jr., and Elon Musk, weighing in over the weekend.
State officials now insist they are taking the allegations seriously but maintain that inspections to date have found nothing illegal.
Critics say that the response amounts to damage control and signals an administration scrambling to contain what could become one of Minnesota’s most far-reaching fraud scandals to date.
Regulators say additional reviews are ongoing.
Payments to the facilities continue.
And the political pressure is still rising.
READ MORE – Journalist Exposes Minnesota ‘Daycares’ Linked to Somali Fraudsters’ Billion-Dollar Scam
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