By now you’ve probably seen the 42-minute video (below) filmed by a young YouTuber, Nick Shirley, who describes himself as “politically independent” but has also been described as “conservative”. Well, his politics don’t matter at all if what he filmed turns out to be true. Shirley, accompanied by another investigator named David, went to visit a spate of Somali-run healthcare and daycare centers in Minnesota, all of which get big bucks from the government, to see if there was any sign of either healthcare or daycare going on. They posted the video on X, and as of this morning it’s been seen by 125 million people. If you haven’t watched it, do so.
As I said, Shirley and David found no evidence of any “business” going on in any of these places. There were no children, and when Shirley tried to register his nonexistent son “Joey” for daycare centers, either nobody answered the door or nobody wanted to take his business. Eventually the businesspeople in these malls called the cops, and Shirley and David were expelled. In most cases the pair had estimates of how much government money went into these businesses.
Is this fraud real? It’s hard to believe otherwise given the videos, as well as other facts, in addition to the history of social-services fraud (most pepetrated by Somali immigrants or their families) that began several years ago. For one thing, the “centers” are ostensibly aimed at the Somali community but, as Luana pointed out to me, the vast majority of Somali families, including those who have been in America more than ten years, are on some form of welfare. As she pointed out (the figures are below): “Notice that 89% of the Somali households with children are on welfare. That means the mother does not work, so they need no daycare.” Note, though, that the data don’t say anything about homes with or without children, but I think it’s a fair assumption that most of the homes getting welfare do contain children.
Here are some data divided up in the graph below into “native households”, “Somali immigrant households”, and “Somali Immigrant households that have been in America for more than ten years.”:

According to the NY Post, all these scams (and note that the majority but not 100% of them were run by Somalis) may have defrauded the American government (and that means you and me) by 9 billion dollars:
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.
“The magnitude cannot be overstated,” First Assistant US Attorney Joe Thompson said Thursday of the tentacles of the fraud. “What we see in Minnesota is not a handful of bad actors committing crimes. It’s staggering, industrial-scale fraud.
. . .The scheme saw dozens of people — the vast majority from Minnesota’s Somali community — setting up businesses and non-profits that claimed to provide services such as housing, food or healthcare assistance and then billing the federally funded state programs for the non-existent services.
The fraud was so enormous that it went beyond the over-billing tactics typically seen in similar fraud cases and instead saw people setting up entire operations — sometimes coming from out of state — to get in on the goldrush of fraud opportunity, Thompson explained.
Charges for six more people allegedly involved in the scheme were announced Thursday, bringing the total number of defendants up to 92.
Among the latest defendants were two people who engaged in what Thompson called “fraud tourism” by allegedly travelling from Philadelphia to set up a bogus housing aid program after spotting an opportunity to make “easy money” off Minnesota’s programs.
As I wrote this morning:
Minnesota Governor Walz is pushing back, saying that he’s always investigated fraud. He doesn’t seem to realize the scale of this fraud, though. . .
Walz, as well as the Lieutenant Governor (a white woman who wore a hijab on a visit to a Somali market), seems more concerned with people demonizing part of the Minnesota community, by which they mean Somalis. And yes, one shouldn’t become an anti-Somali bigot since many are not involved in this fraud, but what seems to be happening is that progressives are downplaying this fraud because most of it is perpetrated by immigrants, descendants of immigrants, and also people of color. The trope of “Islamophobia”—and, of course, votes—seem to be more important than this fraud. Walz himself has blamed the Trump administration for “sensationalizing” this scandal and his state administration asserts that the scale of the fraud is way overstated: actually, they claim, on the order of tens of millions of dollars.
During the coronavirus pandemic, there was widespread fraud in Minnesota, with an outfit called “Feeding our Future” getting an estimated $250 million to feed kids, nearly all of which went into the pockets of scammers (several were arrested). Various versions of these scams perpetrated by Somalis have, then, been going on for at least four years.
And the criminality doesn’t stop there. Seven of the defendants were tried (and five convicted) in a $125 million food-aid fraud trial in 2024. Last year the AP reported that at least five other people, apparently Somalis, were charged with trying to bribe with a bunch of cash one of the jurors to acquit the defendants:
Five people were charged Wednesday with conspiring to bribe a Minnesota juror with a bag of $120,000 in cash in exchange for the acquittal of defendants in one of the country’s largest COVID-19-related fraud cases, the U.S. Attorney’s Office and the FBI announced Wednesday.
Court documents made public reveal an extravagant scheme in which the accused researched the juror’s personal information on social media, surveilled her, tracked her daily habits and bought a GPS device to install on her car. Authorities believe the defendants targeted the woman, known as “Juror 52,” because she was the youngest and they believed her to be the only person of color on the panel.
According to court documents, the group came up with a “blueprint” of arguments for the juror to help persuade other jurors to acquit, injecting the idea that prosecutors were motivated by racial animus: “(w)e are immigrants, they don’t respect us,” the list of proposed arguments read.
The seven people were the first of 70 to stand trial in what federal prosecutors have called one of the nation’s largest COVID-19-related frauds, exploiting rules that were kept lax so that the economy wouldn’t crash during the pandemic. More than $250 million in federal funds was taken in the Minnesota scheme overall, with only about $50 million of it recovered, authorities said.
The food aid came from the U.S. Department of Agriculture and was administered by the state, which funneled the meal money through nonprofit organizations and other partners. As rules were eased to speed support to the needy, the defendants allegedly produced invoices for meals never served, ran shell companies, laundered money, indulged in passport fraud and accepted kickbacks.
Federal prosecutors said just a fraction of the money the defendants received through the Feeding our Future nonprofit went to feed low-income kids, while the rest was spent on luxury cars, jewelry, travel and property.
The bribe didn’t work because the accused target was removed from the jury. The convicted:
. . . Abdiaziz Shafii Farah, Mohamed Jama Ismail, Abdimajid Mohamed Nur, Mukhtar Mohamed Shariff and Hayat Mohamed Nur were found guilty on most of the counts against them. Prosecutors have described Abdiaziz Farah as a ringleader of the seven and faced the most counts; he was convicted on 23 of 24 counts against him.
And the NY Post strongly suggests that a fair amount of money from these scams has gone to Somali terrorist organizations:
Millions of dollars in taxpayer money stolen as part of a series of massive Minnesota welfare fraud schemes may have been funneled to Somalia-based terror group al-Shabab, according to a report.
The radical Islamic terror group, which is a longstanding ally of al Qaeda and considered a threat to US interests, has likely been the beneficiary of money stolen in a spate of scams and sent to Somalia by the criminals defrauding the North Star State, City Journal reported Wednesday, citing federal counterterrorism sources.
. . . “This is a third-rail conversation, but the largest funder of al-Shabab is the Minnesota taxpayer,” a source who worked on a federal investigation into Minnesotans attempting to join overseas terror groups, told the outlet.
David Gaither, a former Republican Minnesota state senator, believes state Democrats and the media have ignored fraud being perpetrated by members of the state’s large and politically influential Somali community, which has made the problem worse.
“The media does not want to put a light on this,” Gaither told City Journal. “And if you’re a politician, it’s a significant disadvantage for you to alienate the Somali community. If you don’t win the Somali community, you can’t win Minneapolis. And if you don’t win Minneapolis, you can’t win the state. End of story.”
The fraudulently obtained welfare funds make their way to al-Shabab through the “untold millions” of dollars in cash remitted by Somalis in Minnesota back to Somalia through an informal network of money handlers, known as “hawalas,” the outlet reported.
“We had sources going into the hawalas to send money,” Glenn Kerns, a retired Seattle Police Department detective who served on a federal Joint Terrorism Task Force (JTTF), explained. “I went down to [Minnesota] and pulled all of their records and, well s–t, all these Somalis sending out money are on DHS benefits. How does that make sense? We had good sources tell us: This is welfare fraud.”
Kerns said he later determined that “significant funds” were being sent from people in the US to al-Shabab networks in Somalia — and though it may not have been intentional, the terror group was getting a share.
“Every scrap of economic activity, in the Twin Cities, in America, throughout Western Europe, anywhere Somalis are concentrated, every cent that is sent back to Somalia benefits al-Shabab in some way,” a former member of the Minneapolis JTTF said. “For every dollar that is transferred from the Twin Cities back to Somalia, al-Shabab is … taking a cut of it.”
Note that the City Journal is a right-wing site, but if you’re going to dismiss these allegations as baseless because of that, then you might as well dismiss any allegations of the NYT or WaPo because they’re “progressive” (the Post less so now). Coverage of the scandal is of course heavier at right-wing sites, but that is absolutely understandable. Nevertheless, what is not important here is race itself but the collaboration of members of an ethnic group to defraud the government. And if the al-Shabab allegations be true—and I expect we’ll find out sooner or later—it would mean that the American taxpayer is subsidizing terrorism, which is the worst part of this whole mess.
One final note. If you were running one of those bogus organizations investigated by Shirley, what would you do if you saw the torrent of bad publicity? You’d start packing the empty childcare centers with kids, maybe even paying their parents to bring them in. Because you’d know for sure that the investigators were going to come. And that may well have happened. What we do know from this site is that state investigators went back to the sites and, of course, found children—during the holiday season, a time when you don’t expect to find kids in daycare. Bolding is mine:
“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,” said Tikki Brown, commissioner of the new Minnesota Department of Children, Youth, and Families — which is responsible for paying federal Childcare Assistance to daycares that file claims.
Commissioner Brown says inspectors went out Monday to double-check that children, in fact, are present at the daycares highlighted in Shirley’s video. The federal Department of Homeland Security was also checking those businesses in Minneapolis.
State data Shirley used in his video show those daycares receive millions in taxpayer money.
“There have been ongoing investigations with several of those centers. None of those investigations uncovered findings of fraud,” Commissioner Brown said.
She says a state inspector visited each of the daycares featured in Shirley’s video within the last six months and that there were children present.
Brown confirmed that the daycares in Shirley’s video have active licenses with the state and continue receiving payments.
The exception — one that closed years ago, and the misspelled Quality Learning Center — which Brown says permanently closed last week.
In a strange contradiction, however, KARE 11 cameras this afternoon captured dozens of children being dropped off at that daycare with parents claiming it’s still open, and a manager saying they are legitimate.
The Department of Children, Youth, and Families has a total of 55 open investigations related to the Child Care Assistance Program.
Now why were there kids at the closed “Quality Learing Center”? Your guess is as good as mine, but I think my guess is pretty good.