FBI gives update on daycare accused of $4MILLION taxpayer fraud as Kash Patel says it's the 'tip of the iceberg' and vows to 'follow the money and protect children' | Retrui News | Retrui
FBI gives update on daycare accused of $4MILLION taxpayer fraud as Kash Patel says it's the 'tip of the iceberg' and vows to 'follow the money and protect children'
SOURCE:Daily Mail
A Minnesota daycare with misspelled signs and no children inside reportedly received $4 million in taxpayer funds, sparking immediate outrage among lawmakers demanding answers.
FBI Director Kash Patel revealed the bureau is cracking down on fraud in Minnesota after a daycare was accused of stealing $4 million in taxpayer money.
In a lengthy X post on Sunday, Patel said the FBI has long been aware of fraud allegations in the state and threatened action against perpetrators.
He vowed to 'protect the children' and warned it was as 'the tip of a very large iceberg'.
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.
The alleged daycare fraud was the latest in a series of misuses of public money uncovered in Minnesota, including 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.
On Sunday, Patel announced that the FBI had already 'surged personnel and investigative resources to Minnesota,' even before the alleged daycare fraud came to light.
FBI Director Kash Patel said his agency has been extensively examining alleged fraud in Minnesota following a series of scandals
His comments came after a viral video emerged alleging that this daycare had pocketed $4 million in federal funds despite apparently having no children at the facility
'The FBI is aware of recent social media reports in Minnesota,' Patel wrote, claiming 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.
In his announcement, Patel emphasized that the FBI has been aggressively targeting a massive fraud network that stole COVID-era food scheme.
'The FBI has toppled a $250 million fraud network that targeted vulnerable children and exposed a 'large-scale money laundering' operation,' Patel said.
'The investigation exposed sham vendors, shell companies and large-scale money laundering tied to the Feeding Our Future network,' he wrote. 'The case led to 78 indictments and 57 convictions.'
Prosecutors alleged that most of the meals intended for low-income children during the pandemic never existed, and instead, the taxpayer money went to luxury homes, cars, jewelry and real estate abroad.
Some defendants - including Abdiwahab Ahmed Mohamud, Ahmed Ali, Hussein Farah, Abdullahe Nur Jesow, Asha Farhan Hassan, Ousman Camara and Abdirashid Bixi Dool - faced charges ranging from wire fraud to conspiracy.
'These criminals didn't just engage in historic fraud, but tried to subvert justice as well,' Patel wrote.
Lisa Demuth, running for governor, is now pushing for stricter scrutiny to uncover fraud in the Democrat-led state
The FBI has toppled a $250 million fraud network that targeted vulnerable children and exposed a 'large-scale money laundering' operation, Patel said. It reportedly led to 78 indictments and 57 convictions
He said Abdimajid Mohamed Nur and others tried to bribe a juror with $120,000, pleaded guilty, and were then sentenced to 10 years in prison and nearly $48 million in restitution in related cases.
'The FBI believes this is just the tip of a very large iceberg,' Patel said. 'We will continue to follow the money and protect children, and this investigation very much remains ongoing.'
'Furthermore, many are also being referred to immigrations officials for possible further denaturalization and deportation proceedings where eligible,' he added.
Additionally, a campaign staffer for Ilhan Omar, a congresswoman of Somali origin who has represented Minnesota's 5th district since 2019, claimed he served 5,000 meals a day under fake food site Advance Athletic Development.
He instead pocketed millions and pleaded guilty to fraud in August of this year.
On Omar’s 2018 and 2020 campaigns, he acted as an 'enforcer,' managing a high-intensity voter mobilization effort in Minneapolis’ Somali community.
Patel’s announcement followed outcry from powerful figures over rampant Minnesota fraud that had seemingly slipped past federal agents without repercussions.
'Fraud is easy to find - if you’re willing to look for it,' Gubernatorial candidate Lisa Demuth said.
Among the fraud uncovered in Minnesota was a Covid-era scheme which led to convictions for individuals to Rep. Ilhan Omar
Patel’s announcement followed outcry from powerful figures over rampant Minnesota fraud that had slipped past federal agents without repercussions
'Many of these seemingly vacant businesses have been cited by the Walz admin for licensing violations which should have made it easy to catch and stop millions from being stolen.'
Congressman Mike Lawler, a Republican from New York, went further, stating that 'folks need to be arrested and prosecuted' and that 'the Governor of Minnesota needs to be held accountable.'
Elon Musk also waded into the controversy, saying that once more Americans find out about the alleged fraud, they 'will be horrified at what your tax money is doing'.
Vice President JD Vance addressed the apparent scandal in Minnesota, though didn't name the daycare center specifically.
'What's happening in Minnesota is a microcosm of the immigration fraud in our system. Politicians like it because they get power. Welfare cheats like it because they get rich,' Vance wrote in a social media post on Saturday.
'But it's a zero sum game, and they're stealing both money and political power from Minnesotans,' he added.
Federal prosecutors said so-called providers submitted false invoices for services never delivered.
This comes after it was alleged that Minnesota’s government lost at least $1 billion in public funds intended for feeding children, helping the homeless and providing autism therapy
Trump criticized Governor Tim Walz for allowing Minnesota to become 'a hub of fraudulent money laundering activity'
Over the past five years, people mostly from Somali communities grew rich running companies that charged the state millions for social services that never happened, according to The New York Times.
He said the perpetrators should be 'sent back to where they came from.'
Later, he said he would be revoking the temporary protected status of the roughly 700 Somali nationals who have it, which prevents them from being deported.
On Thanksgiving, Trump called Walz 'seriously retarded' and also attacked Rep. Ilhan Omar and Minnesota's immigration policy.
Earlier this month, Omar spoke out against the massive welfare fraud, warning it has a significant impact on the Somali community.
'You know, this also has an impact on Somalis because we are also taxpayers in Minnesota,' she said during a segment on Face the Nation, as reported by The Hill.
'We could have also benefited from the program and the money that was stolen,' she added.
When asked if the stolen money had funded terrorism, the congresswoman said she was 'pretty confident' it didn’t.
Earlier this month, Omar spoke out against the massive welfare fraud, warning it has a significant impact on the Somali community
President Donald Trump weighed in and said all the perpetrator of fraud should be 'sent back to where they came from'
Omar said: 'There are people who have been prosecuted, and who have been sentenced.'
'If there was a linkage in that the money they have stolen going to terrorism, that is a failure of the FBI and our court system in not figuring that out,' she added.
As of now, the Quality Learning Center has not been officially accused of wrongdoing by authorities.
But according to Shirley, a pro-Trump influencer it pocketed $1.9 million from Minnesota’s Child Care Assistance Program (CCAP) in 2025 and $4 million in total.
Local news station KSTP reached a different conclusion after investigating the facility in January.
The station reported it received $7.8 million in federal dollars since 2019, though it isn't clear whether this figure includes funding from sources other than CCAP.