#1044 - Nick Shirley - Inside Minnesota's $10B Childcare Fraud Scandal

In Minnesota, an alarming scale of alleged fraud, particularly involving different types of care services and transportation companies, has raised significant concerns.

Fraud and Misuse in Minnesota Daycare and Welfare Programs

Investigative efforts by Nick Shirley and insights from David, who has been looking into this issue for years, have revealed suspicious activities in the provision of daycare services in Minnesota.

Interviewee Visits Empty Daycares With Licenses for Many Children, Receiving Millions in Government Funding Despite Appearing Non-operational

Nick Shirley mentions visiting several daycares with licenses for many children but finding them non-operational. For instance, one daycare had no children present during a visit despite receiving $3.45 million in government funding. Quality Learning Center, despite being licensed for many children and receiving $1.9 million, had no children on site and over 90 violations. Shirley also spoke about the existence of adult daycares and assisted living facilities that might be fraudulently misusing funds.

Fraud by Daycares, Adult Daycares, Assisted Living, and Transport Companies For Government Funds

There are numerous instances where care facilities are suspected of committing fraud to secure government funds, with 89% of the fraud committed by people inside Minnesota attributed to Somalis. This included facilities such as Mako, where two daycares in the same building each received upwards of $5 million from the government, yet were unresponsive during visits.

Fraud May Have Totaled Over $9 Billion Statewide

The conversation between Nick Shirley and Chris Williamson underscored the extent of the problem, with an estimated fraud total of over $9 billion statewide. Detailed stories involving various care facilities and transport companies, including one man charged with $7.2 million in Medicaid fraud, reveal the depth of the issue.

Role of Transportation Companies in Alleged Fraud

Non-emergency medical transportation (NEMT) companies have been implicated in fraudulent practices as part of the wider issue.

Interviewee Describes Fraudulent Trip Logging by "Non-emergency Medical Transportation" Companies to Secure Government Funding

Shirley discuss ...

Accusations have been directed at Minnesota Governor Tim Walz regarding the alleged enablement of fraudulent activities within welfare programs, as discussed by Nick Shirley.

Allegations Minnesota Governor Tim Walz Enabled Fraud for Political Reasons

Walz Knew About Fraud Since 2019 but Did Little Due to Political Considerations and Maintaining Support From the Somali Immigrant Community

Nick Shirley claims that Tim Walz, despite being aware of fraud since 2019, enabled the continuation of fraudulent activities due to political considerations, including maintaining support from the Somali immigrant community. Shirley suggests that officials, such as Walz, pandered to the Somali community for votes and ties to welfare programs. He further alleges that there are daycare workers who aren't paid legally, receiving cash instead, which allows for tax evasion. Shirley also points to connections between political figures, like Ilhan Omar, and individuals operating daycares, insinuating the funneling of funds to political campaigns, including Walz's.

Fraud Exposed, Walz Attacked and Tried to Discredit Investigator

Shirley accuses Governor Walz of not only enabling this fraud but also of attacking and trying to discredit an investigator after the fraud was exposed. The investigator was publicly labeled by Walz as a white supremacist and far-right conspiracy theorist.

Federal Initiatives to Investigate and Combat Fraud

Federal Agencies Launch Investigations and Freeze Funding To Minnesota Daycare Programs

Shirley applauds the freezing of all childcare funding for the state ...

Nick Shirley shared his experiences with mainstream media's reactions following his exposure of fraud, highlighting a culture of delegitimization by media outlets towards independent investigators.

Media Outlets Discredit and Smear the Investigator As Politically Motivated or Untrustworthy

Shirley expressed frustration that, rather than focusing on the fraudsters he exposed, the media targeted him. Despite the truth of his story, media outlets went after his credibility. He specifically mentioned being labeled as a "MAGA YouTuber" and a "conservative right-wing journalist," pejorative terms meant to frame him in a political light rather than as an unbiased journalist.

Outlets Criticized the Investigator's Methods and Cast Doubt On His Valid Findings

Moreover, Shirley defended his journalistic methods, stating that in his videos, he talks to everyone and allows all perspectives to be heard, emphasizing that he is letting people speak for themselves. Yet, mainstream media, according to Shirley, would rather discredit him than acknowledge the veracity of his reporting.

Investigator: Media Protects Interests, Not Objectively Reporting Fraud

Shirley asserted that his investigative work is a threat to the media's viewership, revenue, and fanbase. Thi ...

The investigator at the center of a high-profile fraud case, Nick Shirley, opens up about the personal impact and safety concerns he faces after exposing fraudulent activities.

Investigator Faces Threats and Harassment For Exposing Fraud

After publishing his findings, Shirley reveals that he has to have security with him at all times, indicating a significant safety concern. He began receiving threats and had his personal information spread online, actions that dramatically affected his security and privacy.

Received Threats, Personal Info Shared, Hired Security

Shirley tells the harrowing story of the changes he's had to make since uploading a YouTube video that changed his life overnight. Due to the threats, he now lives with a 24/7 security detail accompanying him. This level of threat led him to enlist the help of Officer Tatum's nonprofit organization, which facilitated security through Black Line Guardian, a security company. Such measures became essential once threats had escalated to the point of required protection at his home.

Investigator Modifies Filming & Investigation Methods For Fraud Case Safety

The incidents of harassment and potential risk have forced Shirley to adapt his approach to investigations to ensure his own safety.

Take More Precautions, Avoid Confrontation, Minimize Cameras to Reduce Risk In Sensitive Investigations

In light of the threats, Shirley has had to employ four security guards, signifying the severity of the risk he faced when returning to Minneapolis. An incident at an intersection further illustrated the hostile environment, where an individual attempted to confront Shirley.

Chris Williamson comments on the situation, acknowledging that death threats are a gra ...

Investigator Nick Shirley hints at a broader issue with fraudulent activities that reach beyond Minnesota's borders, suggesting the uncovered schemes indicate a national problem.

Investigator Suspects Discovered Minnesota Fraud Is Widespread

Shirley reveals the emerging concept of "fraud tourism," where individuals move to different states, such as Minnesota, for the sole purpose of committing fraud. This movement implies that such fraudulent activities could be part of a more extensive, widespread problem. He specifically mentions groups in Texas, including Somalis, and others who may be engaging in similar activities nationwide.

Moreover, Shirley has stated that there's "lots of fraud to expose" in California and across the world. Although there's no direct information from the provided chunks about specific fraud tips in California, Ohio, and New York, Shirley hints at an expansive scope of welfare scams that could be uncovered with further investigation.

Fraud Tips in Ca, oh, Ny

Nick Shirley reveals that he has received messages urging him to look into fraud in various states, singling out California, Ohio, and New York as having significant issues. In California, he references an unaccounted $24 billion related to homelessness and problems with a train project he dubs "Cali-fraud." Additionally, he points to welfare programs in Ohio a ...