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In Minnesota, a significant fraud scandal involving childcare centers has captured attention, drawing remarks from FBI Director Kash Patel, who emphasized that this issue has been under investigation for some time and remains a top concern for the bureau.
Recently, a video by YouTube journalist Nick Shirley gained widespread traction, showcasing his confrontation with an employee at a purported learning center in Minnesota. Despite receiving millions in aid, the center showed no apparent signs of activity, prompting public scrutiny.
In a statement shared on X, Patel affirmed the FBI’s involvement in the matter. He explained that even before the situation gained traction on social media, the FBI had already allocated personnel and resources to Minnesota to uncover and address extensive fraud operations that were exploiting federal programs.
“Fraud that siphons taxpayer money and deprives vulnerable children is a critical concern for the FBI, both in Minnesota and across the nation,” Patel stated, underscoring the agency’s commitment to tackling such crimes.
He also highlighted the FBI’s previous success in dismantling a massive $250 million fraud scheme that misappropriated federal food aid earmarked for children during the COVID-19 pandemic, illustrating the bureau’s ongoing efforts to protect public resources and support those in need.
Patel then noted that the FBI “dismantled a $250 million fraud scheme that stole federal food aid meant for vulnerable children during COVID.”
“The investigation exposed sham vendors, shell companies, and large-scale money laundering tied to the Feeding Our Future network,” he continued. “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 concluded that these schemes are “just the tip of a very large iceberg.”
Assistant U.S. Attorney Joseph Thompson also revealed earlier this month that half of $18 billion in federal welfare funds, which supports 14 Minnesota-run programs since 2018, has been lost to fraud.
“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,” Thompson said. “This is a deeply unsettling reality that all Minnesotans should understand.”
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