Nick Shirley's Minnesota Fraud Investigation Triggers Federal Raids

125 days ago, Nick Shirley released an investigation into Minnesota's taxpayer-funded daycare system that drew hundreds of millions of views worldwide. His findings revealed locked doors during business hours, empty parking lots, and facilities receiving public funds but showing no signs of serving children, shifting the national focus onto government fraud.

Minnesota's Office of Inspector General reviewed nine centers, found children at eight, and stated they were "operating as expected." NBC News described Shirley's claims as "unsubstantiated." CNN questioned his methods on Anderson Cooper 360, while The Intercept referred to his video titles as "sensationalized." Governor Tim Walz labeled Shirley a "far-right delusional conspiracy theorist" and asserted that exposing fraud in his state was "white supremacy."

This past Tuesday, following months of public attention and skepticism, the FBI executed court-authorized search warrants at the identified addresses. Below is Nick Shirley’s response to the raids:

Locations included the Quality “Learing” Center, known for its misspelled sign featured in Nick’s original video, as well as Mini Childcare Center, Metro Learning Center, Baby Halimo Child Care, and the Somali Senior Center. These are the same locations previously cleared by state regulators and cited by media outlets to challenge Nick’s earlier reporting. They are now under investigation, with FBI agents collecting boxes worth of potential evidence.

Nick's reaction on X captured the moment and elevated the conversation. "Happy Learing Day," he wrote. "Today, the Learing Center and 21 other fraudulent businesses were raided by the FBI." He made clear what the raids mean: there was enough evidence to obtain search warrants and for Governor Walz to reverse his previous statements, confirming the fraud is real. Nick reminded followers, "Tim Walz called me a 'far right delusional conspiracy theorist' and said exposing the fraud in his state was 'white supremacy.'" He continued, "It was the classic false smear tactic that has worked for so long... but it didn't work this time. Tim was exposed and dropped out. Tim leared."

Meanwhile, the governor tried to rewrite the narrative in real time. Walz posted on X, claiming the raids "happened because our state agencies caught irregular behavior and reported it." FBI Director Kash Patel shut that down immediately, quote-tweeting Walz and responding: "Come again? The FBI and DOJ, with our DHS partners, drafted and executed every search warrant today. But go ahead and take credit for our work while we smoke out the fraud plaguing Minnesota under your governorship." DHS Secretary Markwayne Mullin followed, telling Walz directly that he has "zero credibility on this issue" and that he "willingly ignored and downplayed the rampant fraud and abuse in Minnesota." Senator Rand Paul credited Nick and the Vice President by name: "Well, the American people know we can actually thank Nick Shirley and Vice President JD Vance."

Vice President Vance, chair of the Task Force to Eliminate Fraud, previously described Shirley's video as "far more useful journalism than any of the winners of the 2024 Pulitzer prizes." He stated, "The task force and the DOJ will be relentless in exposing these fraudsters wherever they may be hiding."

Nick Shirley credited David Hoch for his role in the original investigation, writing, "none of the fraud being exposed to this level would have been possible without David." Hoch had investigated Minnesota's fraud problem independently for years before collaborating with Shirley. Shirley described Hoch as "a patriot in the truest form" who "doesn't care about the recognition" and "just wanted to help his country." We have an exclusive interview with David coming out tomorrow. Only Founding Members can watch, so if you’re not one already, become one today.

The broader numbers behind Tuesday's raids are staggering. Federal prosecutors have estimated that fraud across 14 high-risk Medicaid services in Minnesota could exceed $9 billion since 2018. The Trump administration froze federal childcare funding in January and has moved to withhold hundreds of millions more in Medicaid dollars pending audit results. First Assistant U.S. Attorney Joe Thompson has described what is happening in the state as "staggering, industrial-scale fraud."

Nick summed the whole thing up in a separate post: "For months and months, MSM and politicians tried to debunk the fraud scandals in Minnesota, investigating me rather than the people committing the fraud. Guess what? It was all true."

Arrests are expected soon, and the investigation is ongoing. The FBI's search warrants at the locations identified by Nick Shirley highlight the accuracy of his initial reporting on daycare fraud.

We will be following federal investigations and other developments out of Minnesota closely. What are your thoughts on the fallout and the mainstream media and elected officials dismissing Nick’s original investigations? Reply to us.

The FBI raided the Quality Learing Center, and we’re celebrating. Use code LEARINGDAY at checkout for 25% OFF everything in the store! Hurry, stock is limited, and the discount ends this Sunday.

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What happened in Minnesota on Tuesday is raising the hairs on the backs of Gavin Newsom and other Sacramento representatives. The situation there closely matches what has been happening in California for months. Nick caught the fraud on camera; the state insisted nothing was wrong; the governor criticized the person who exposed the issue instead of fixing it; and then the federal government arrived with search warrants.

California is further along this path than many people think, and the latest events are impossible to overlook.

Earlier this month, federal prosecutors arrested eight people for a $50 million hospice fraud scheme in the Los Angeles area. In five cases, hospice centers allegedly billed Medicare for patients who were not terminally ill and did not qualify for hospice care. A few days later, California Attorney General Rob Bonta charged 21 people in a separate $267 million case called "Operation Skip Trace." In this scheme, shell companies used stolen identities to enroll people in Medi-Cal and billed for hospice services that were never provided.

Dr. Oz and CMS estimate that hospice fraud in Los Angeles County alone totals $3.5 billion. This county has almost one-third of all hospices in the country. First Assistant U.S. Attorney Bill Essayli called California the "kingdom of fraud" and said the federal government is "providing the oversight that has been missing from California for a very long time."

The House Oversight Committee has started a formal investigation into California's hospice programs. Dr. Oz plans to review every hospice in the state by the end of the year. Nick is also working on the second part of his California investigation.

At the same time, Governor Newsom's office is using the same approach that Tim Walz used in Minnesota. They are taking credit for arrests, saying the state has led fraud enforcement for years, and criticizing those who reveal the problems. Newsom's press office even posted a fake AI image of Nick after his California exposé. His team has dismissed federal scrutiny as just politics. On Tuesday, the country saw this strategy fall apart in Minneapolis when the FBI arrived with 22 search warrants and the governor was publicly corrected by the FBI Director, the DHS Secretary, and a U.S. Senator within a few hours.

California should pay close attention to what just happened in Minnesota, because the same federal agencies, the same task force, and the same independent journalist are now focusing on California. The clock is officially ticking.