Explosive surveillance footage from 2015 has resurfaced, exposing a shocking pattern of fraud in Minnesota’s daycare system that has persisted for over a decade.
The video shows parents staging fake drop-offs at what authorities now say was a fraudulent childcare center.
FBI Director Kash Patel announced the bureau has deployed additional personnel and investigative resources to Minnesota to combat widespread fraud in federal programs.
The revelation comes as one daycare facility faces accusations of stealing $4 million in taxpayer money through false claims.
The damning video evidence was originally recorded in Hennepin County during March 2015.
The footage was later uncovered in 2018 and has now gained renewed attention.
Fox News reported that parents can be seen entering the facility with their children, only to immediately leave with them still in tow.
Hennepin County prosecutors discovered that the fraudulent operation claimed reimbursement funds despite never actually providing childcare services.
Providers even submitted claims for reimbursement on days when parents failed to appear for the staged drop-offs at all.
Additional footage obtained by a local Fox affiliate in Minnesota allegedly captured kickback payments being made to participants in the scheme.
Four separate centers participated in the fraud, which resulted in $1 million stolen from government funds.
Four individuals were arrested in connection with the scheme, according to Fox9.
Abdirizak Ahmed Gayre and Ibrahim Awgab Osman entered guilty pleas to felony theft by swindle as part of a plea agreement.
The state dismissed additional charges against them under the agreement and pledged not to pursue charges against other defendants.
Authorities have not confirmed whether connections exist between the decade-old scandals and current fraud allegations rocking Minnesota leadership.
The recent daycare fraud reports represent the latest in a series of public fund misuses discovered in Minnesota.
A massive Covid-era scheme involving Feeding Our Future, a federally funded nonprofit organization, stands among the most significant cases.
Seventy-eight people have been charged in connection with the Feeding Our Future plot.
Seventy-two of those charged are Somali nationals.
Patel released a lengthy statement on X Sunday confirming the FBI’s longstanding awareness of fraud allegations throughout the state.
The New York Post reported Monday that staff members were observed bringing in dozens of children to the facility.
Local residents expressed surprise, claiming they believed the center had permanently closed due to never witnessing children being dropped off during normal operations.
One nearby resident stated they never saw kids entering the building until Monday and assumed the facility had shut down based on the consistently empty parking lot.
Ibrahim Ali, son of the facility’s owner, disputed reports characterizing the center as a ghost town.
Ali defended the timing of when Shirley filmed the near-empty facility, arguing it had not yet opened for business.
He compared the situation to visiting a coffee shop late at night and questioning why employees were not present.
Patel announced Sunday that the FBI had already deployed personnel and investigative resources to Minnesota before the latest daycare fraud allegations emerged.
The bureau has committed to dismantling large-scale fraud schemes targeting federal programs.
“Fraud that steals from taxpayers and robs vulnerable children will remain a top FBI priority in Minnesota and nationwide,” Patel wrote.
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