Today’s Release
Nick Shirley Was Right (Again)
Help Us Shape Anti Fraud Club
The Feds Just Subpoenaed the H-1B Visa Machine

Nick Shirley Was Right (Again)

Nick Shirley Investigating Minnesota’s Billion Dollar Fraud Scandal (Nick Shirley)
For the past six months, Governor Tim Walz has faced a problem he can’t ignore: Nick Shirley. It all began with one video showing empty Minneapolis daycares collecting public funds, which sparked the biggest fraud investigation in Minnesota’s history. This week, the state finally released the numbers, and Nick made sure the public noticed.
Look at the scoreboard. When Nick’s video first dropped, the state insisted the daycares were operating as expected. Since then, the federal government froze about $185 million in childcare funding for Minnesota, agents raided daycares throughout the Twin Cities, and prosecutors brought the first charges for defrauding the childcare program. The first person charged, Fahima Mahamud, allegedly made $4.6 million in false claims before the state caught on. Minnesota now admits there are 436 open investigations into taxpayer-funded daycares, and the state has finally started using the electronic attendance system that its own auditors recommended back in 2019. This simple step could have prevented the fraud years ago. Walz, who spent years assuring Minnesotans he had fraud under control, left his reelection campaign in January.
There’s also the public dispute. When federal agents carried out their raids in April, Walz posted on X and tried to take credit. FBI Director Kash Patel quickly corrected him, saying his agency “drafted and executed every search warrant” that day. DHS Secretary Markwayne Mullin also criticized Walz, saying he had no credibility on fraud. The governor who ignored the problem for years wanted to claim credit for the work of those fixing it.
Nick has always argued that the real fraud in Minnesota was Tim Walz, and the facts support his claim. The issue didn’t start with a viral video; it developed over years while Walz was in charge. A Republican-led House committee found that his administration discouraged employees from reporting suspicious billing. Prosecutors estimate that total fraud across Minnesota’s social programs could exceed $9 billion. When the criticism finally came, Walz blamed politics and used divisive language instead of taking responsibility.
That’s the difference between these two men. One arrived with a camera and a list of addresses and pushed the state to act. The other led the state while money disappeared and accused those investigating of lying. In the end, results matter more than titles.
A 24-year-old independent journalist has uncovered more fraud in Minnesota than the governor did in seven years. Nick is still out filming, while Walz is still offering explanations. It’s clear who is ahead.
What’s your take on how this situation has unfolded? Reply to this email and share your thoughts.

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Help Us Shape Anti Fraud Club

Nick Shirley (as Uncle Sam) wants you to submit the Anti Fraud Club Summer Survey
Every week, over 50,000 of you open this newsletter, and millions follow Nick Shirley’s investigations across the world. We’ve put together a quick reader survey that takes just two minutes to complete.
As we plan our coverage for the next few months, we want your input. Let us know which stories you read, which you skip, and what topics interest you most. Would you like more of Nick’s field investigations, more about the money trail, more on California’s fight and similar efforts in other states, or something new?
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The Feds Just Subpoenaed the H-1B Visa Machine

D’Esposito Announces Federal Probe into H-1B and PERM Work Visas (Fox Business)
The Trump administration launched its first major fraud investigation into the H-1B visa program on Wednesday. Labor Department inspector general Anthony D’Esposito told Fox Business that his office has already sent out dozens of subpoenas as they look into possible abuse of H-1B and PERM work visas, labor trafficking, and the loss of jobs for American workers.
The H-1B visa allows American companies to hire foreign workers for specialized jobs, usually for three years and sometimes up to six. The tech industry relies heavily on this program, making up 60 to 70 percent of new applications in recent years. Consulting firms, engineering companies, hospitals, and universities also use it often. While the program is legal and widely used, D’Esposito’s office is now investigating part of it for possible criminal activity.
D’Esposito spoke directly, saying “fraud is fueling violent crime” and linking some of the visa and labor trafficking his team is finding to cartels and international gangs. He also said the issue goes beyond factories, with some workers placed through fake paperwork ending up in hospitals and doctors’ offices, putting patients at risk. The investigation is still at the subpoena stage and no charges have been filed yet.
The announcement was carefully timed. D’Esposito revealed the investigation on the same day Vice President JD Vance hosted a national fraud event in Milwaukee, highlighting the administration’s focus on fighting fraud. The visa investigation is part of a larger campaign that also targets health care and benefit fraud. Now, immigration is included in these efforts. D’Esposito explained the goal is to protect American jobs and help make the country more affordable.
The crackdown has faced pushback. Last month, a federal judge rejected the administration’s plan to charge employers a $100,000 fee for each H-1B worker, saying only Congress has the power to impose such taxes. A legal federal program created for a good reason is sometimes misused by brokers and employers who benefit from breaking the rules, while the workers become bargaining chips instead of the focus. The key question is whether the subpoenas will lead to charges, which will take months to find out. For now, companies involved with the H-1B program are getting letters from federal investigators, and the government says this is just the first case like this.

The Audit Log
Vance’s task force says Medicare billing for skin grafts spiked 7,100% in six years. Officials now deny 96% of the claims and say they stopped about $220 million in fraud.
The SBA flagged 562,000 loans totaling $22.2 billion and sent them to the Treasury for collection. Most came from pandemic-era PPP and disaster relief.
The task force pegs Medicaid fraud at nearly $100 billion a year. CMS is ordering states to re-verify high-risk providers or face consequences.


