FBI Director Kash Patel acknowledged an ongoing fraud investigation in Minnesota involving childcare centers, describing it as part of a long-running federal effort that remains a priority. The recognition followed renewed public attention after online reports raised questions about learning centers that appeared to receive substantial public funds despite limited signs of activity.
A video published by YouTube journalist Nick Shirley circulated widely over the weekend after he confronted an employee at an alleged learning center in Minnesota that was reported to be receiving millions of dollars in aid while showing no clear evidence of day-to-day operations. The footage amplified scrutiny of how federal and state assistance programs are monitored and how eligibility and compliance are verified once funds are distributed.
In response to the attention, Patel addressed the matter publicly on X, stating: “The FBI is aware of recent social media reports in Minnesota. However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs. Fraud that steals from taxpayers and robs vulnerable children will remain a top FBI priority in Minnesota and nationwide.” His statement emphasized that federal authorities had been active in the state prior to the latest online exposure.
Patel pointed to a previous investigation as an example of the scale and complexity involved, noting that the FBI “dismantled a $250 million fraud scheme that stole federal food aid meant for vulnerable children during COVID.” He added, “The investigation exposed sham vendors, shell companies, and large-scale money laundering tied to the Feeding Our Future network.” According to Patel, “The case led to 78 indictments and 57 convictions. Defendants included Abdiwahab Ahmed Mohamud, Ahmed Ali, Hussein Farah, Abdullahe Nur Jesow, Asha Farhan Hassan, Ousman Camara, and Abdirashid Bixi Dool, each charged for roles ranging from wire fraud to money laundering and conspiracy.”
Patel characterized the broader issue by stating that such cases are “just the tip of a very large iceberg,” indicating that investigators view the problem as systemic rather than isolated. Federal fraud cases of this size typically involve coordination across agencies, extensive financial analysis, and years of investigative work, particularly when public funds flow through multiple layers of contractors, nonprofits, or service providers.
Additional context came earlier this month from Assistant U.S. Attorney Joseph Thompson, who disclosed that a significant portion of federal welfare funding in Minnesota has been lost to fraud. Thompson stated that half of $18 billion in federal welfare funds supporting 14 Minnesota-run programs since 2018 had been improperly taken. Addressing the broader implications, he said, “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. This is a deeply unsettling reality that all Minnesotans should understand.”
Taken together, the statements from federal officials outline a pattern of oversight challenges tied to large-scale public assistance programs, particularly those designed to deliver aid quickly to vulnerable populations. The investigations underscore how enforcement agencies balance rapid distribution of taxpayer-funded support with the need for accountability, verification, and safeguards to prevent abuse.
