Minnesota officials deny daycare fraud allegations from viral video
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Minnesota officials and a daycare administrator denied allegations of fraud Monday after a viral video questioned publicly funded child care centers; Both sides disputed allegations that the facility was closed or that taxpayer money was improperly collected.
The allegations stem from a viral video posted by freelance journalist Nick Shirley showing visits to various Minnesota daycares, including the Quality Learning Center in Minneapolis.
At a news conference Monday, Minnesota Department of Children, Youth and Families Commissioner Tikki Brown said previous inspections of the centers had not uncovered fraud and that regulators had conducted additional unannounced visits to investigate concerns raised by the video.
“We are aware of a video circulating about child care centers in Minnesota that has attracted local and national attention,” Brown said. “While we have questions about some of the methods used in the video, we take the concerns raised by the video about fraud very seriously.”
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Independent journalist Nick Shirley visited a number of nurseries to inquire about childcare, but found many were empty. (Fox News)
Each facility mentioned in the video has been visited at least once in the past six months as part of the state’s licensing process, and annual inspections are conducted without notice to assess normal operations, Brown said.
He added that investigators found children were present during those visits and that no previous investigations had revealed fraud.
“None of these investigations revealed any evidence of fraud,” Brown said, adding that there is currently no pause in payments to the centers mentioned in the video.
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Brown also acknowledged questions about the timing of the video visits, saying regulators were seeking clarity on whether the footage was recorded during working hours or on days the centers were scheduled to be open.
Meanwhile, the manager of the Quality Learning Center has vehemently denied the allegations, saying the video misrepresents the facility, filming outside stated hours and falsely suggesting the business is inactive.
Minnesota Department of Children, Youth and Families Commissioner Tikki Brown has denied that any fraud has occurred, despite a recent report by independent journalist Nick Shirley. (Swimming pool)
Ibrahim Ali, the director of the center, said: “There is no fraud whatsoever.” “Kids come to us, customers come to us, their parents come to us; they are here every day, they leave on time, they arrive on time. There is no fraud whatsoever.”
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Ali said the center operates from 2 to 10 p.m., Monday through Thursday, primarily serves after-school children and has remained open continuously for more than eight years.
He also disputed claims during the state briefing that the center was closed due to space concerns, saying that claim was false.
Ibrahim Ali, director of the Center for Quality Learning, denied any fraud had taken place, despite a recent report by independent journalist Nick Shirley. (Swimming pool)
“We didn’t close it. We never closed it,” Ali said. “There’s never been a time when kids have been told not to come. There’s never been a time when we’ve told our staff not to come. It’s all misinformation.”
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Ali said the investigation was damaging to business and the Somali community, arguing that the allegations were exaggerated without evidence and unfairly linked to ethnicity.
“Are you trying to record that we are committing fraud, or are you trying to put the name Somalia and fraud in the same sentence?” Ali said. “That’s what’s really upset us the last few days.”
State officials said additional site visits were ongoing and emphasized that any credible evidence of fraud would be investigated. Ali invited media and inspectors to return during working hours to observe normal activities.
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The response follows the release of a 42-minute video posted by Shirley on X and YouTube on Friday, documenting visits to various day care centers around the state, including one on Nicollet Avenue in Minneapolis.
The video shows Shirley and another man at a largely inactive child care facility. Although the center serves 99 children and receives nearly $4 million in state funds, the building also has a misspelled sign that reads “Center for Quality Education.”
Appearing on Fox News’ “The Big Weekend Show” on Sunday, Shirley said the alleged scam in Minnesota was “so obvious” that “a kindergartener could tell there was a scam going on.”
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Tim Walz speaks on stage during the 2025 SXSW Conference and Festival at the Austin Convention Center on March 8, 2025 in Austin, Texas. (Tibrina Hobson/Getty Images)
Shirley also suggested that other journalists may be reluctant to do similar reporting for fear of being labeled “Islamophobic” or “racist”.
“Fraud is fraud, and we work hard just to pay taxes and make sure the fraud happens,” he said.
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The video sparked widespread outrage and over the weekend, including Vice President J.D. Vance, Rep. Mike Lawler, R-Y., Donald Trump Jr. and led to criticism of Minnesota Governor Tim Walz from several high-profile individuals, including Elon Musk.
Fox News Digital’s Sophia Compton contributed to this report.
