On Monday, Minnesota officials and a daycare manager refuted accusations of fraud following claims made in a viral video. The video questioned the operations of state-funded childcare centers, with both parties denying that the facility was either shut down or wrongfully receiving taxpayer money.

The controversy began with a viral video by independent journalist Nick Shirley, who documented visits to several daycare centers in Minnesota. Among them was Quality Learning Center in Minneapolis, which appeared to be inactive during his visit, despite receiving state childcare assistance funds.

During a news conference, Minnesota Department of Children, Youth and Families Commissioner Tikki Brown addressed the situation, stating that earlier inspections of the centers had not revealed any fraudulent activity. She assured the public that regulators are conducting additional unannounced inspections to address the concerns raised by the video.

“We’re aware of a video circulating that’s garnered local and national attention regarding childcare centers in Minnesota,” Brown said. “While we have some concerns about the methods used in the video, we are taking the fraud allegations it raises very seriously.”

Nick Shirley, the independent journalist behind the video, reported visiting several daycare facilities to inquire about childcare services, only to find many of them empty.

Brown said each facility mentioned in the video has been visited at least once in the past six months as part of the state’s licensing process, with annual inspections conducted without advance notice to assess normal operations.

She added that inspectors found children present during those visits and that none of the prior reviews uncovered fraud.

“None of those investigations uncovered findings of fraud,” Brown said, adding that there is currently no pause on payments to the centers named in the video.

Brown also acknowledged questions about the timing of the video visits, noting that regulators are seeking clarity on whether footage was recorded during operating hours or on days when centers were scheduled to be open.

Meanwhile, the manager of Quality Learning Center forcefully rejected the allegations, saying the video misrepresented the facility by filming outside posted hours and falsely suggesting the business was inactive.

Minnesota Department of Children, Youth and Families Commissioner Tikki Brown denied any fraud took place, despite a recent report by independent journalist Nick Shirley. (Pool)

“There’s no fraud going on whatsoever,” said Ibrahim Ali, the center’s manager. “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., serving primarily after-school children, and has remained open for more than eight years without interruption.

He also disputed claims made during the state briefing that the center had closed due to space concerns, calling that assertion false.

Quality Learning Center manager Ibrahim Ali denied any fraud took place, despite a recent report by independent journalist Nick Shirley. (Pool)

“We haven’t closed. We’ve never closed,” Ali 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 said the scrutiny has been damaging to the business and the broader Somali community, arguing that allegations were amplified without evidence and unfairly linked to ethnicity.

“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.”

State officials said additional site visits are underway and emphasized that any credible evidence of fraud would be investigated, while Ali invited media and inspectors to return during operating hours to observe normal activity.

The response follows the release of a 42-minute video by Shirley, posted Friday on X and YouTube, documenting visits to several daycare centers in the state, including a location on Nicollet Avenue in Minneapolis.

In the video, Shirley and another man are seen at what appears to be a largely inactive child care facility. The building also displays a misspelled sign reading “Quality Learing Center,” even though the center is reportedly supposed to account for 99 children and received roughly $4 million in state funds.

During a Sunday appearance on Fox News’ “The Big Weekend Show,” Shirley said the alleged fraud in Minnesota was “so obvious” that a “kindergartner could figure out that there is fraud going on.”

Tim Walz speaks onstage during 2025 SXSW Conference and Festival at the Austin Convention Center on March 8, 2025, in Austin, Texas. (Tibrina Hobson/Getty Images)

Shirley also suggested other journalists may be reluctant to pursue similar reporting 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.

The video has sparked widespread backlash, drawing criticism of Minnesota Gov. Tim Walz throughout the weekend from several high-profile figures, including Vice President JD Vance, Rep. Mike Lawler, R-N.Y., Donald Trump Jr. and Elon Musk.