With around 80,000 residents, Minnesota hosts the biggest Somali diaspora in the United States. Many of them are refugees from the civil war that has raged in their native nation since 1991. They moved to Minneapolis and its suburbs, enticed by meatpacking jobs, Lutheran charity networks, and a more generous welfare system than others.
Notably, anti-India Congresswoman Ilhan Omar is also of Somali descent. However, the community has often come into the spotlight following significant scandals that erupted concerning Minnesota’s social programmes. An astounding $9 billion is the anticipated overall damage, which is close to Somalia’s entire GDP.
It was also determined that of the 98 defendants indicted and over 60 convictions in significant fraud cases across the state, 85 are either Somali Americans or of Somali heritage.
MINNESOTA FRAUD: @NickShirleyyy’s work has helped show Americans the scale of fraud in Tim Walz’s Minnesota. @TheJusticeDept has been investigating this for months. So far, we have charged 98 individuals – 85 of Somali descent – and more than 60 have been found guilty in…
— Attorney General Pamela Bondi (@AGPamBondi) December 29, 2025
The truth comes to light
On 27th December, the issue surfaced after Nick Shirley, a 23-year-old YouTuber, exposed the pervasive fraud at childcare centres run by Somalis using publicly accessible data from the Minnesota Department of Human Services. These facilities had received millions in government subsidies, but the footage showed deserted playgrounds, blacked-out windows, closed doors at licensed daycares and angry employees who screamed or ran away when confronted.
A woman even yelled, “Don’t open up, it’s ICE (Immigration and Customs Enforcement).” A neighbour also attested that no kids had been spotted there in eight years. Shirley stated, “This could be the largest fraud scandal in US history,” during his investigation. He pointed out that federal and state funding were diverted to businesses that had negligible or no operational history.
? Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable
— Nick shirley (@nickshirleyy) December 26, 2025
We ALL… pic.twitter.com/E3Penx2o7a
The places that were authorised to look after dozens of kids seemed empty during the day. Shirley’s guide, David, a local researcher who reported having been stabbed during his own inquiry, assisted him in recording $110 million in dubious payments. “I would drive by these childcare centres in the middle of the day, and there were never any kids there. That’s when I started asking, where are these children?” David remarked.
Shirley maintained that these centres received annual payments of hundreds of thousands of pounds, and in some instances, millions, even though they didn’t appear to be functioning. Additionally, abuse within home healthcare programs and non-emergency medical transport services was revealed in the video.
According to the YouTuber, officials knew about the suspicious activities but did nothing about them. Vice President JD Vance and former Department of Government Efficiency (DOGE) head Elon Musk both shared the footage.
The alarming reality sparks inquiry and outrage
The explosive disclosures in Shirley’s video resulted in major backlash against the administration, including Democrat Governor Tim Walz, after which an investigation was launched. On 29th December, federal agents were in Minnesota conducting a probe into the matter. ICE and Homeland Security Investigations (HSI) were present in Minneapolis.
A video of officers walking “door to door” at suspected fraud locations was made public by Homeland Security. It wrote, “The American people deserve answers on how their taxpayer money is being used and arrests when abuse is found.”
DHS is on the ground in Minneapolis, going DOOR TO DOOR at suspected fraud sites.
— Homeland Security (@DHSgov) December 29, 2025
The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found. Under the leadership of @Sec_Noem, DHS is working to deliver results. pic.twitter.com/7XtRflv36b
“Our agents are conducting a massive operation to identify, arrest, and remove criminals who are defrauding the American people at daycares, healthcare facilities, and other suspected sites. We will not stop until we’ve rooted out this rampant fraud plaguing Minnesota,” Homeland Security vowed in another post.
The American people demand answers and accountability. DHS, under @Sec_Noem, will deliver on them.
— Homeland Security (@DHSgov) December 29, 2025
Our agents are conducting a massive operation to identify, arrest, and remove criminals who are defrauding the American people at daycares, healthcare facilities, and other… pic.twitter.com/DvA62Sjl1J
The agency promised to deliver results under the leadership of Secretary Kristi Noem. A law enforcement official mentioned that Shirley’s video had a role in the increase of DHS (Department of Homeland Security) agents in Minneapolis, including visits to about thirty companies, reported CNN.
FBI director pledges to eliminate fraud schemes
The Federal Bureau of Investigation director also took to social media to address the issue. He informed, “The FBI is aware of recent social media reports in Minnesota. However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota 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.”
He further highlighted a $250 million scam in Minnesota that concluded in multiple charges. “The case led to 78 indictments and 57 convictions. Defendants included Abdiwahab Ahmed Mohamud, Ahmed Ali, Hussein Farah, Abdullahe Nur Jesow, Asha Farhan Hassan, Ousman Camara, and Abdirashid Bixi Dool, each charged for roles ranging from wire fraud to money laundering and conspiracy,” Patel noted.
CASE UPDATE: MINNESOTA FRAUD SCHEME
— FBI Director Kash Patel (@FBIDirectorKash) December 28, 2025
The FBI is aware of recent social media reports in Minnesota. However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes…
Patel emphasised, “The FBI believes this is just the tip of a very large iceberg. We will continue to follow the money and protect children, and this investigation very much remains ongoing. Furthermore, many are also being referred to immigration officials for possible further denaturalisation and deportation proceedings where eligible.”
SBA ends funding for Minnesota
The Small Business Administration (SBA) has also taken action to halt the grant from entering Minnesota in response to the critical development. “This administration will not continue to hand out blank checks to fraudsters – and we will not rest until we clean up the criminal networks that have been stealing from American taxpayers,” SBA chief Kelly Loeffler announced.
SBA is pausing annual funding to Minnesota while we investigate $430 million in suspected PPP fraud across the state.
— Kelly Loeffler (@SBA_Kelly) December 29, 2025
This Admin will not continue to hand out blank checks to fraudsters – and we will not rest until we clean up the criminal networks that have been stealing from…
Earlier in December, a federal prosecutor suggested that at least half of the approximately $18 billion in federal monies that have been used to support 14 programs in Minnesota since 2018 may have been pilfered, and the majority of the accused are Somali Americans. “The magnitude cannot be overstated. What we see in Minnesota is not a handful of bad actors committing crimes. It’s staggering, industrial-scale fraud,” voiced First Assistant US Attorney Joe Thompson.
The fresh action ensued as 57 Minnesotans were found guilty after years of inquiry that started with the $300 million corruption at the charitable organisation “Feeding Our Future,” which was at the centre of the biggest COVID-19-related scam in the nation. The perpetrators misused a state-run, federally sponsored program designed to feed children.
Meanwhile, Tom Emmer, majority whip in the United States House of Representatives, charged, “Well, it’s amazing to me that a 23-year-old journalist, a YouTuber who’s now got over 80 million views on this video, found more in a matter of hours than Governor Tim Walz and Keith Ellison, Minnesota Attorney General, have found in 7 years.”
The history of the scam extends to 2014
There has been widespread fraud in Minnesota involving taxpayer-funded day care since at least 2014. The scammers stuffed carry-on luggage with up to $1 million each to smuggle out of the country. Tens of millions of dollars of cash flew out of the Minneapolis-Saint Paul International Airport roughly a decade ago, per a report in Fox 9. Minnesota taxpayers lost $100 million annually as a result.
The passengers left with a total of $84 million in 2016 and an additional $100 million the following year, marking an enormous rise. The amount travelled to Dubai, the Middle East and other locations. According to sources, MSP lost over $100 million in cash in 2017.
As of 2018, the state was probing potential fraud by dozens of companies suspected of obtaining millions of dollars in payments from the government for bogus childcare services. The state began to crack down on such scams in 2014. Ten companies were the subject of ongoing investigations at the time.
Millions of dollars in stolen funds have reportedly been moved to Somalia and ended up with al-Shabab, a terror group connected to al Qaeda, according to federal counterterrorism sources. A source unveiled, “The largest funder of al-Shabab is the Minnesota taxpayer,” according to the New York Post.
“It’s welfare fraud, it’s all about the daycare,” Glen Kerns quoted sources. He is a veteran Seattle police detective and served on the FBI’s joint terrorism task force for fifteen years. The extent of the rot was illustrated when Fozia Ali, who was under investigation for wire fraud and the misappropriation of public funds, took the oath as a member of the Hopkins Park Board.
The state’s food program, autism program and the Housing Stabilisation Program are considered to have lost at least $300 million, $220 million and $302 million, respectively. The scammers used the money to purchase expensive honeymoon trips to the Maldives, luxurious vehicles including Mercedes and Porsches, and even a suite at a Minnesota Timberwolves game in addition to shipping the illicit proceeds overseas.
President Trump lashes out at the Somali community in the U.S
President Donald Trump has been candid about his disapproval of Ilhan Omar and the Somali community. “Hundreds of thousands of refugees from Somalia are completely taking over the once great State of Minnesota. Somalian gangs are roving the streets looking for prey as our wonderful people stay locked in their apartments and houses hoping against hope that they will be left alone,” he outlined on the evening of Thanksgiving eve. He also attacked Governor Tim Walz for not taking any action and termed Omar as “the worst Congressman/woman” in the country and even talked about her controversial past including marriage.
“I wouldn’t be proud to have the largest Somalian – look at their nation. Look how bad their nation is. It’s not even a nation. It’s just people walking around killing each other. Look, these Somalians have taken billions of dollars out of our country. Billions and billions,” Trump later outlined.
“Those Somalians should be out of here. They’ve destroyed our country,” he further stated. “Go back to your own country and figure out your constitution. All she (Omar Ilhan) does is complain about this country, and without this country, she would not be in very good shape. She probably wouldn’t be alive right now. Somalia is considered by many to be the worst country on Earth. I don’t know. I haven’t been there, I won’t be there anytime soon, I hope,” the president added.
The Trump administration intends to deploy additional federal agents to Minneapolis with the authority to target Somalis, especially those who have final deportation orders.
