The daycare center at the heart of a Minnesota fraud controversy is defending itself against critiques over a misspelled sign while reportedly transporting children to the facility.

The Quality ‘Learing’ Center in Minneapolis gained attention last week when independent journalist Nick Shirley released footage showing the daycare apparently empty, despite its receipt of substantial funding.

Observers who viewed the video quickly spotted the mistake in the word ‘learning’ on the sign above the entrance.

On Monday, the New York Post reported seeing staff bringing in numerous children, contrary to local beliefs that the daycare was closed due to the absence of visible activity.

“We’ve never seen kids go in there until today. That parking lot is always empty, and I assumed the place was shut down,” commented a nearby resident.

As many as 20 young children and toddlers were seen walking into the facility on Monday morning, prompting Ibrahim Ali, the son of the facility’s owner, to hit back at reports it is usually a ghost town.

‘Do you go to a coffee shop at 11 p.m. and say, “Hey, they’re not working?,”‘ Ali said.

He argued that when Shirley arrived and began filming the near-deserted facility, it had simply not yet opened for the day.

The Quality ‘Learing’ Center in Minneapolis was thrust into the spotlight last week after independent journalist Nick Shirley shared footage of the facility apparently devoid of children despite receiving millions of dollars in funding 

Minnesota governor claimed on Sunday he was taking strong action against the alleged rampant fraud in his state

He said there were 16 children being taken care of inside the center on Monday. 

Ali also attempted to shift blame for the infamous ‘learing’ sign, accusing a graphic designer that had been hired of making a typo.

‘What I understand is [the owners] dealt with a graphic designer. He did it incorrectly. I guess they didn’t think it was a big issue,’ the 26-year-old said.

‘That’s gonna be fixed.’ 

The center claims its opening hours are 2pm to 10pm, Monday to Thursday. 

Footage of the facility sparked outrage among lawmakers and allegations state authorities allowed the ‘largest fraud in US history’ to go unchecked. 

But Minnesota Department of Children, Youth, and Families Commissioner Tikki Brown shot down Shirley’s concerns, noting each of the facilities mentioned in his video had been subject to inspections in the last six months.

She said in all cases, children were present when authorities arrived to conduct their searches.

The FBI is helping to investigate, and ICE agents descended on Minnesota on Monday

‘There have been ongoing investigations with several of those centers. None of those investigations uncovered findings of fraud,’ Brown said. 

Brown also noted the daycare centers in the video have active licenses with the state and will continue receiving payments. 

On Sunday, FBI Director Kash Patel said the FBI has long been aware of fraud allegations in the state and threatened action against perpetrators.

‘The FBI believes this is just the tip of a very large iceberg,’ Patel wrote. 

‘We will continue to follow the money and protect children, and this investigation very much remains ongoing.’

‘Furthermore, many are also being referred to immigration officials for possible further denaturalization and deportation proceedings where eligible.’

Addressing the allegations made in Shirley’s video, Patel said the ‘FBI is aware of recent social media reports in Minnesota.’

Footage of the facility, featuring a misspelled sign as ‘Quality Learing Center’, sparked outrage among lawmakers and allegations state authorities allowed the ‘largest fraud in US history’ to go unchecked

He claimed that the bureau has moving 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.

According to Shirley, the childcare center pocketed $1.9 million from Minnesota’s Child Care Assistance Program (CCAP) in 2025, bringing the total to $4 million. 

Shirley, in his investigation, arrived at the doorsteps of several daycare centers, claiming to be a father looking to enroll his child, but said he never saw any children at the facilities.

He said it was ‘potentially the largest fraud scandal in US history.’ 

ICE agents descended on Minnesota this week in response to the growing scandal, arriving on the doorstep of the nearby ABC Learning Center to probe its books.

The director of the facility said ICE demanded ‘two months of attendance [records]’ and vowed to check it thoroughly for discrepancies.

Minnesota Governor Tim Walz, who ran as the Vice Presidential candidate on the Democratic ticket alongside Kamala Harris, has faced widespread backlash over the crisis in his state.

In a lengthy X post on Sunday, FBI Director Kash Patel said the FBI has long been aware of fraud allegations in the state and threatened action against perpetrators

‘The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action,’ a spokesperson for Walz told Fox News. 

‘He has strengthened oversight – including launching investigations into these specific facilities, one of which was already closed.’ 

Walz also ‘hired an outside firm to audit payments to high-risk programs, shut down the Housing Stabilization Services program entirely, announced a new statewide program integrity director, and supported criminal prosecutions.’ 

The governor has been inundated with criticism from concerned Americans questioning how he intends to respond to allegations of widespread fraud within the state. 

Initial reports emerged earlier this month of a massive Covid-era scheme involving the federally funded nonprofit group Feeding Our Future.

At least 78 people, 72 of whom are Somali, have been charged in connection with the illicit plot.