Building on door-to-door federal probes in Minneapolis, authorities have charged 98 individuals—mostly of Somali descent—in a scheme allegedly defrauding Minnesota welfare programs of $9 billion since 2018. Fake nonprofits ran empty daycare centers, funneling funds to Somalia and possibly terrorist groups like Al-Shabaab.
The scandal traces back at least a decade. In 2015, state prosecutions revealed parents briefly dropping off children at Minneapolis centers to enable false billing, leading to arrests including Abdirizak Ahmed Gayre and Ibrahim Awgab Osman, with some pleading to felony theft.
Recent momentum followed independent journalist Nick Shirley's viral video exposing empty facilities despite heavy state funding, prompting Homeland Security Investigations' December 29, 2025, door-to-door checks. One focus, the Quality Learning Center (sign misspelled 'Learing'), received $4 million and was licensed for 99 children through 2026 but racked up 121 violations, including unsafe conditions and missing records, with $200 fines in 2024. Manager Ibrahim Ali denied wrongdoing, claiming after-school operations and accusing coverage of anti-Somali bias.
Attorney General Pam Bondi announced the 98 charges, mostly against Somali descendants, stating more prosecutions are coming. Acting ICE Director Todd Lyons linked issues to sanctuary policies, while House Majority Whip Tom Emmer called for deportations of fraud perpetrators. The Trump administration sued Minnesota over sanctuary laws in September 2025. Officials allege funds routed through shell companies to Al-Shabaab. Governor Tim Walz faces growing criticism amid the state's large Somali community.
