DHS investigates possible fraud at Minneapolis businesses after viral video
The Department of Homeland Security says federal agents are conducting door-to-door visits at more than 30 businesses across Minneapolis as part of an investigation into potential taxpayer fraud.
(NBC)- The Department of Homeland Security says federal agents are conducting door-to-door visits at more than 30 businesses across Minneapolis as part of an investigation into potential taxpayer fraud.
Officials say the operation is focused on businesses that may be improperly receiving federal and state funds. The effort follows renewed attention sparked by a viral video posted by right-wing YouTuber Nick Shirley, who identifies himself as an independent journalist.
In the video — which has been viewed more than 100 million times — Shirley visits several childcare centers in Minneapolis, many located in Somali-American neighborhoods, and claims the facilities were receiving government subsidies despite appearing to have no children present.
“These buildings should be operating as they’re receiving literally millions of dollars,” Shirley said in the video.
NBC News reached out to Shirley for comment about the timing of the visits but did not receive a response.
Minnesota officials say the concerns raised in the video are being taken seriously, but they caution against drawing conclusions without full investigations.
“While we have questions about some of the methods that were used in the video, we do take the concerns about potential fraud very seriously,” said Tikki Brown, Commissioner of the Minnesota Department of Children, Youth, and Families.
According to the commissioner, many of the childcare centers highlighted in the video have already been investigated in the past, with no evidence of fraud found. Eight of the ten centers shown in the video are still operating and continue to receive taxpayer funding.
“Which is why our teams are out today making additional unannounced visits — to confirm whether children are present in these childcare centers,” Brown said.
The controversy has fueled criticism from Republicans, who argue Democratic Governor Tim Walz has not done enough to address potential fraud. In a statement, the governor’s office said he has pushed for years to strengthen oversight and has requested additional authority from the state legislature to take more aggressive action.
Federal authorities say the investigation spans multiple administrations. The Justice Department has launched several probes into alleged fraud in the Minneapolis area under both the Biden and Trump administrations.
In Washington, FBI Director Kash Patel said his agency has “surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes.”
