Category: Minnesota
Somali terror group cashing in on your tax dollars? Minnesota’s childcare fraud whistleblowers warned about a decade ago.
Minnesota has faced intense scrutiny in recent weeks due to revelations of a widespread childcare fraud scheme, largely among local Somalis, that has allegedly drained millions of taxpayer dollars. However, the problem is far from new, as whistleblowers have been warning about this alleged rampant abuse for nearly a decade.
Yet, there has been little progress or accountability.
In May 2018, KMSP-TV released a scathing report alleging “massive daycare fraud” based on whistleblower claims. Scott Stillman, a former employee of the Minnesota Department of Human Services, told the news outlet that he warned his supervisors about these issues in a series of emails in March 2017.
Stillman, an upper management employee who spent eight years overseeing the state’s digital forensics lab, explained that he reported alleged fraud to the state’s DHS because he was concerned there was a “strong possibility” that defrauded taxpayer funds were being used against innocent civilians and the U.S. military.
‘Everyone who did this must be arrested.’
The alleged fraud pertained to the Child Care Assistance Program, which the federal government created in 1990 to help low-income parents afford childcare so they could work or participate in job training.
Stillman told KMSP he wanted the federal government to launch an independent investigation into the handling of day care and Medicaid programs, claiming the fraud reached $100 million or more annually. He also alleged that individuals in the state sent the fraudulent money to Somalia, where it was used to fund a terrorist organization known as al-Shabaab.
The local news interview prompted lawmakers to hold a hearing that same month.
“This is not a Minnesota problem,” Stillman testified. “It started in Minnesota, but we found an individual in our investigation who was teaching and training other states to do this, and it’s spreading out.”
“A federal investigation would reveal that there are other entities involved in this who may be receiving benefits from this fraud,” he said.
RELATED: The insane little story that failed to warn America about the depth of Somali fraud
Photo by Matt Roth for The Washington Post via Getty Images
Stillman’s testimony prompted the Minnesota’s Office of the Legislative Auditor in 2019 to issue a report in which auditors stated they could not verify the alleged $100 million in annual fraud and concluded they could not provide a reliable estimate.
However, they believed the fraud was greater than the $5 million to $6 million prosecutors were able to prove in several criminal cases where defendants were charged with felonies and ordered to pay $4.6 million in restitution for their participation in a childcare fraud scheme.
Auditors also said they could not substantiate Stillman’s claims that any of the alleged funds were making their way into the pockets of terrorist groups.
“On the other hand, we found that federal regulatory and law enforcement agencies are concerned that terrorist organizations in certain countries, including Somalia, obtain and use money sent from the United States by immigrants and refugees to family and friends in those countries,” the auditors wrote. “In addition, federal prosecutions have convicted several individuals in Minnesota of providing material support to terrorist organizations in foreign [countries].”
Federal and state officials have been concerned about Child Care Assistance Program fraud since at least 2013, the report added.
The auditor’s report referenced an August 2018 email from Jay Swanson, the then-manager of the CCAP Investigations Unit, in which he substantiated Stillman’s allegations.
“Investigators, as well as the Supervisor and Manager of this unit believe that the overall fraud rate in this program is at least 50% of the $217M paid to child care centers in CY2017,” he wrote in an email to then-Inspector General Carolyn Ham.
Swanson claimed that much of the “pervasive” fraud could be attributed to “large scale overbilling” by “many child care centers,” eligible mothers recruited by providers to receive cash kickbacks, fraudulent centers opening in the same location as a previous center that was ineligible for the program, and shell care centers that exist only to scam the program, among numerous other schemes and oversight gaps.
“In my opinion anyone who claims that Mr. Stillman was making false statements on this topic either has no knowledge of this situation, or is attempting to shift the focus of the conversation away from a very serious issue,” Swanson concluded in his letter to the inspector general.
During a December 2018 hearing before the state lawmakers, IG Ham disputed Swanson’s claim.
“I do not trust the allegation that 50% of CCAP money is being paid fraudulently,” Ham remarked.
The CCAP Investigations Unit also warned about rampant fraud, according to the 2019 auditor report. The unit’s manager stated that investigators “do not believe, despite the number of cases investigated thus far, that any real progress has been made regarding CCAP fraud.”
“Investigators regularly see fraudulent child care centers open faster than they can close the existing ones down,” the manager explained.
While Minnesota DHS officials did not dispute the existence of a CCAP fraud problem, they argued that $100 million in fraud, as Stillman had claimed, was “not a credible number.”
“We’re concerned about fraud and are aggressively pursuing it, but it’s not at that level. Funding for the Child Care Assistance Program for 2017 was $248.2 million,” the MDHS said in a statement in May 2018, responding to Stillman’s allegations.
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Photographer: Simone Lueck/Bloomberg via Getty Images
Then-acting MDHS Commissioner Chuck Johnson reiterated that Stillman’s fraud estimate was not credible. However, he admitted he could not put a reliable number on the total fraud.
By the time the 2019 report was published, dozens of Minnesota residents and childcare centers had been charged with CCAP fraud.
Since these issues were initially brought to the MDHS’ attention, Minnesota has transitioned CCAP oversight and administration to the Department of Children, Youth, and Families. When reached for comment concerning childcare fraud, MDHS directed Blaze News to contact DCYF. That department did not respond.
Minnesota’s long-standing childcare fraud issues recently gained national attention, thanks to journalist Nick Shirley’s on-the-ground reporting in December. This explosive coverage has ignited fierce criticism of the state’s Democratic leadership while shining a harsh light on broader oversight failures that extend beyond the CCAP.
This week, the Minnesota Office of the Legislative Auditor released a performance audit highlighting grant issuance lapses in the Minnesota Department of Human Services’ Behavioral Health Administration, the department responsible for overseeing mental health programs and alcohol and drug abuse services.
Auditors aimed to assess whether the BHA had “adequate internal controls and complied with significant finance-related requirements related to oversight of grants.” Instead, they found that the administration had failed to comply with “most” of the tested requirements, concluding that it lacked sufficient internal controls over grant funds.
Some of the report’s shocking findings included nearly $300,000 in unsupported grant reimbursements, $915,000 in grant payments for work performed before fully executed agreements were established, $2.5 million in grants awarded without using a competitive bid process, and the improper use of single-source grants.
Additionally, auditors noted that, while MDHS and BHA staff were cooperative with the audit, they provided “a number of documents” that were “either backdated or created after our audit began.”
When reached for comment about the OLA report, Minnesota’s Department of Human Services provided an excerpt from temporary Commissioner Shireen Gandhi’s testimony at a Tuesday Legislative Audit Commission hearing.
During her opening remarks, Gandhi stated that she was “shocked” to learn that staff have provided auditors “anything other than an accurate representation of the work done.”
“With respect to the audit report, while it’s upsetting that DHS has findings in an area that we have placed concerted effort, the OLA’s report highlights the importance of the compliance work that is under way at the department. And the findings provide us with a road map for our focus going forward to continue strengthening oversight and integrity of behavioral health grants,” Gandhi said. “I take the report seriously, I accept responsibility for the findings, and I will ensure that DHS closes the findings.”
Eric Daugherty of Florida’s Voice reacted to the new “BOMBSHELL” report, stating that it confirms the MDHS “FABRICATED RECORDS and did not verify grant recipients, tried COVERING THEIR TRACKS, enabling massive fraud.”
He called on Gov. Tim Walz to immediately resign. Walz has already dropped out of his re-election campaign amid the state’s ongoing fraud controversy.
“Everyone who did this must be arrested,” Daugherty wrote.
It is not yet clear whether any of these reports will result in criminal investigations.
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VEEP VAPORIZES CNN: Vance Torches Media Mob for Framing of ICE Shooting — ‘Tell the Truth!’ [WATCH]
![VEEP VAPORIZES CNN: Vance Torches Media Mob for Framing of ICE Shooting — ‘Tell the Truth!’ [WATCH]](https://hannity.com/wp-content/uploads/2026/01/GettyImages-2254664428-300x200.jpg "US-POLITICS-BRIEFING-VANCE")
Vice President JD Vance unleashed holy hell on CNN Thursday, torching their “disgraceful” coverage of a deadly ICE shootout in Minneapolis that left a radical activist dead – and accusing the fake news giant of endangering America’s heroes in blue.
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Government fraud meets its worst enemy: Some dude with a phone
Nick Shirley knocked on doors. That was all it took to crack Minnesota’s multibillion-dollar fraud scandal — and expose the failure of the institutions that were supposed to catch it.
Shirley visited Somali-run “businesses” that had received millions in taxpayer funds. His videos showed locked doors, covered windows, and empty buildings where thriving operations were supposed to exist.
When institutions feel threatened, they usually try to personalize the fight. That approach won’t work here.
Within days, the footage racked up more than 100 million views on X alone, triggered a flood of federal scrutiny, and helped force a political reckoning in a state where warnings had gone ignored for years.
Legacy media outlets initially dismissed the story as a “conspiracy theory” — until they couldn’t. Gov. Tim Walz (D) went from defending the programs to demanding crackdowns almost overnight. Federal authorities surged additional personnel and resources into Minnesota. What had been treated as untouchable suddenly became unavoidable.
What happened in Minnesota matters. But what happens next matters more.
You are about to see hundreds — perhaps thousands — of Nick Shirley imitators flood social media. Exposing government waste and fraud is no longer just journalism; it is an incentive structure and a business model.
Independent investigators armed with public records, smartphones, and social platforms will fan out across the country, documenting the gap between what government pays for and what actually exists. And the establishment has no effective way to stop them.
The old playbook no longer works.
When institutions feel threatened, they usually try to personalize the fight. Discredit the messenger. Destroy the movement by targeting its most visible figure. We saw this strategy deployed against the DOGE by turning government efficiency into a culture war about Elon Musk.
That approach won’t work here.
You can’t sue a thousand kids with iPhones. You can’t “fact-check” an empty building that’s supposed to be full of children. Calling something “misinformation” loses its power when the door is locked, the windows are covered, and fraud indictments follow months later.
RELATED: Fraud thrived under Democrats’ no-questions-asked rule
Photo by Stephen Maturen/Getty Images
What’s emerging isn’t a movement with a leader — it’s a decentralized ecosystem. Accountability no longer depends on a single newsroom or institution. It comes from a generation that has figured out that exposing corruption is vastly more rewarding than working a shift at Starbucks.
That should terrify every political leader who has relied on the assumption that no one is really watching.
A single viral video now generates more pressure than a year of congressional hearings. The Minnesota press corps had years to uncover what Shirley documented in an afternoon. They didn’t look — not because the evidence was hidden, but because looking wasn’t incentivized. Now it is.
This shift is part of the reason I created Rhetor, an AI-driven political strategy firm designed to track what people are actually saying and doing in real time. Using these tools, we’ve identified billions of dollars in questionable spending beyond Minnesota.
In New York City, for example, migrant-related spending is projected to reach $4.3 billion through 2027. Audits have flagged contractors billing the city for empty hotel rooms — charging $170 per night while paying hotels closer to $100 and pocketing the difference.
Chicago has paid at least $342 million to staffing firms charging $156 an hour for shelter workers. Illinois spent $2.5 billion in 2025 under emergency rules with minimal oversight.
These are not isolated incidents. They share the same ingredients as Minnesota’s scandal: emergency declarations, suspended procurement rules, inexperienced contractors, and little meaningful oversight.
And someone is going to knock on those doors too.
The old gatekeepers understand what this means — and they’re panicking. For decades, investigative journalism required institutional backing. Stories could be delayed, softened, or killed outright if they threatened the wrong people and interests.
That system is dead.
Photo by Spencer Platt/Getty Images
The new investigative journalism runs on virality, not permission. The reporter is a 23-year-old with a ring light and a Substack. The editorial board is the algorithm. The feedback loop is brutal, immediate, and unforgiving. Get it wrong and the internet will tear you apart. Get it right and the story spreads faster than any newspaper ever could.
This isn’t replacing traditional journalism. It’s filling the void left when traditional journalism stopped doing its job.
Minnesota was the proof of concept. The data was public. The facilities were visitable. The fraud existed for years. Nobody looked — until looking became profitable.
Now it’s profitable everywhere.
The bureaucrats and contractors who built careers on the assumption that no one was watching are about to discover that everyone is. The politicians who treated emergency spending like free money are about to learn that the emergency is over — and the receipts are coming to light.
A generation that treats views like oxygen just learned that fraud is the best clickbait.
Good luck stopping that.
Minnesota’s fraud avalanche begins: How a ‘nonprofit’ scammed $250M meant for needy children
As Minnesota reels from the day care fraud scandal, the Feeding Our Future scam, a separate scheme that sparked broader investigations into the state’s oversight failures, continues to unfold in the courts.
The $250 million COVID-era con, which involved defrauding a taxpayer-subsidized child nutrition program, has already resulted in 78 individuals facing charges and 57 convictions, with additional charges pending.
Much like the alleged day care scheme, in which care center owners allegedly received kickbacks from the government for children they never served, many of those working with the purported nonprofit organization Feeding Our Future were charged with billing for food that was never provided to children. Many of those involved in both of these scandals are Somali.
‘To be clear, this is not an isolated scheme.’
In September 2022, the U.S. Attorney’s Office for the District of Minnesota announced the first wave of federal criminal charges against dozens of individuals tied to Feeding Our Future for their alleged role in scamming the Federal Child Nutrition Program, which provides free meals to children in need.
The U.S. Department of Agriculture operates the program, distributing federal taxpayer dollars on a per-meal basis to the Minnesota Department of Education, which oversees the program locally. The MDE then provides reimbursement funds to sponsoring agencies such as Feeding Our Future that support sites that distribute meals directly to those in need.
The first 47 defendants were accused of using government funds to enrich themselves while falsely claiming the money was used to feed over 30,000 children daily.
As part of the conspiracy, defendants allegedly formed numerous shell companies to receive and launder the taxpayer proceeds, submitting fraudulent documentation, including meal count sheets, food invoices, and attendance rosters with fake names. The Department of Justice reported that one of the fabricated rosters listed names created by a random-name-generating website. Some defendants allegedly used an Excel formula to populate random ages between 7 and 17, since the sites could be reimbursed only for meals provided to children.
The scheme allowed Feeding Our Future, which was founded in 2016 and claimed to have opened over 250 sites, to receive more than $18 million in administrative fees alone. The DOJ also claimed that some of the nonprofit’s employees accepted bribes and kickbacks, many in the form of cash disguised as “consulting fees,” from individuals and companies.
Instead of feeding children, the defendants allegedly used these funds to purchase luxury vehicles, travel internationally, and buy property in Minnesota, Ohio, Kentucky, Kenya, and Turkey.
The defendants’ charges included conspiracy, wire fraud, money laundering, and bribery.
RELATED: Fraud thrived under Democrats’ no-questions-asked rule
Photo by Brianna Soukup/Portland Portland Press Herald via Getty Images
The most prominent defendant to face charges is Feeding Our Future founder and executive director Aimee Bock.
When the MDE attempted to conduct oversight of the nonprofit’s sites and reimbursement claims, Bock and her organization responded by filing a lawsuit against the agency in November 2020, alleging that the MDE had discriminated against the nonprofit based on race, national origin, color, and religion. Feeding Our Future asserted that the MDE’s “administrative and procedural hurdles” were preventing low-income and minority children from accessing federally funded food programs.
Former FBI Director Christopher Wray described the scandal as an “egregious plot to steal public funds meant to care for children in need.”
By October 2022, the first guilty pleas in the case began to emerge, with four defendants admitting they knowingly and willfully conspired to commit the fraud. By February 2024, the DOJ had filed nearly two dozen additional indictments and secured at least 10 convictions, through guilty pleas and jury verdicts.
Further charges emerged in June 2024 when five of the defendants were accused of attempting to bribe a juror.
Abdiaziz Shafii Farah, 36, along with four other defendants, conspired to pay Juror 52 $120,000 in exchange for returning a not-guilty verdict.
According to the DOJ, the defendants targeted this particular juror because she was the youngest and a person of color. Their selection process included researching her online and obtaining her home address and information on her family’s background. One defendant was accused of following the juror home after she left the courthouse and placing a GPS tracker on her vehicle to collect information about her daily habits.
They allegedly sought to pay Juror 52 $200,000 in cash if she returned a not-guilty verdict on all counts for all defendants. Additionally, they planned to provide her with a list of “arguments to convince other jurors,” which apparently included persuading them that the prosecution was motivated by racial animus.
While all of the defendants were charged with conspiracy to bribe a juror, bribery of a juror, and corruptly influencing a juror, Farah faced an additional charge of obstruction of justice after he allegedly performed a factory reset on his phone to delete evidence of the bribe attempt.
Farah, the co-owner and operator of a for-profit restaurant that participated in the fraud scheme, was described by the DOJ as playing a leading role in the scam, personally pocketing over $8 million. Farah sent some of the stolen taxpayer funds he collected overseas, including laundering money through China and purchasing real estate in Kenya. The DOJ stated that the overseas assets cannot be recovered.
After Farah’s passport was seized and he was informed that he was the target of a federal investigation, he applied for a new passport in downtown Minneapolis, claiming it had been lost. Farah successfully obtained a new passport and attempted to flee the country by purchasing a one-way ticket to Kenya. Law enforcement took him into custody before he could leave.
He was ultimately convicted of numerous counts, including wire fraud, federal programs bribery, money laundering, and false statements in a passport application. He was sentenced in August to 28 years in prison, followed by three years of supervised release.
All of the defendants involved in the bribery scheme pleaded guilty.
Photo by Michael Loccisano/Getty Images
A federal jury in March found mastermind Bock and co-defendant Salim Said guilty for their roles in the scheme. Jurors determined that the co-conspirators formed dozens of shell companies to enroll as food program sites. Said, the co-owner of Safari Restaurant, from April 2020 through November 2021, claimed to have served more than 3.9 million meals to children through the restaurant’s food site and another 2.2 million meals to other food sites.
Bock was convicted on multiple counts, including wire fraud and bribery. Said was convicted of wire fraud, bribery, and money laundering, among other crimes.
Some of the actors accused of defrauding the Federal Child Nutrition Program were also tied to a scam impacting the Early Intensive Developmental and Behavioral Intervention Autism Program.
The DOJ filed charges on September 24 against 28-year-old Asha Farhan Hassan, claiming she participated in a $14 million autism fraud scheme. Hassan was previously charged in connection with the Feeding Our Future scandal.
According to the DOJ, Hassan registered Smart Therapy LLC in November 2019 and falsely listed herself as the sole owner. She enrolled the business as a provider agency in the EIDBI Autism Program, claiming to provide Applied Behavior Analysis therapy to autistic children. She also enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future, claiming that her company served up to 1,200 meals per day to children.
Hassan allegedly hired unqualified individuals, often 18- or 19-year-old relatives with no formal training, to treat autism. To facilitate her government kickback scheme, she approached Somali parents to recruit their children to receive treatment, the DOJ said. If the child did not have an autism diagnosis, her team worked to qualify the child for subsidized services.
Parents reportedly received monthly cash payments ranging from $300 to $1,500 for participating in the scheme. These payments were allegedly hidden in fraudulent Medicaid billing. Several families reportedly went to other autism centers that offered to pay larger kickbacks than Hassan’s Smart Therapy.
Hassan pleaded guilty to one count of wire fraud last month.
“From Feeding Our Future to Housing Stabilization Services and now Autism Services, these massive fraud schemes form a web that has stolen billions of dollars in taxpayer money,” acting U.S. Attorney Joseph Thompson stated. “Each case we bring exposes another strand of this network. The challenge is immense, but our work continues.”
The DOJ continues to file charges against those allegedly involved in these fraudulent schemes. In November, the department indicted its 78th defendant tied to Feeding Our Future.
The Feeding Our Future scandal exposed only a fraction of the pervasive fraud schemes plaguing Minnesota’s government, driven by lax oversight under the leadership from members of the left-leaning Democratic-Farmer-Labor Party. This initial discovery has since led to the uncovering of even more potentially stolen taxpayer dollars, such as the recent day care scandal.
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MINNESOTA ON EDGE: Tensions Boil Over in Minneapolis After ICE Shooting [WATCH]
![MINNESOTA ON EDGE: Tensions Boil Over in Minneapolis After ICE Shooting [WATCH]](https://hannity.com/wp-content/uploads/2026/01/GettyImages-2255110553-300x200.jpg "Federal Agents Descend On Minneapolis For Immigration Enforcement Operations")
An Immigration and Customs Enforcement (ICE) officer fatally shot a 37-year-old woman in her vehicle during an immigration enforcement operation in southeast Minneapolis on Wednesday.
Tim Walz Suggests Prosecutor Who Indicted Somali Fraudsters Should Be Fired: ‘We Are Under Assault’
Minnesota governor Tim Walz (D.) suggested the federal prosecutor behind the Somali fraud convictions in the state should be fired, accusing him of “defamation” for providing an estimate of the total amount defrauded from Medicaid programs.
The post Tim Walz Suggests Prosecutor Who Indicted Somali Fraudsters Should Be Fired: ‘We Are Under Assault’ appeared first on .
Noem Says Officer Targeted In ICE Attack Was Previously Run Over And Dragged By Anti-ICE Rioter
‘People need to stop using their vehicles as weapons’
