Federal agents executed search warrants at nearly two dozen daycare centers across Minnesota on Tuesday, April 28, 2026, as part of a federal investigation into widespread taxpayer fraud.
One target was the Quality Learning Center in Minneapolis, known for its misspelled sign reading “Quality Learing Center.”
The raids, conducted by the FBI and Homeland Security Investigations, are linked to a major fraud scheme uncovered by journalist Nick Shirley. Shirley’s investigation revealed more than $110 million in daycare fraud within a single day of his work, including centers operating with no children on-site. A Justice Department spokesman stated that the warrants were executed “as part of an ongoing fraud investigation” and emphasized that the operations were not related to immigration.
Federal prosecutors have described the scheme as “industrial-scale,” claiming Somali-run businesses have defrauded taxpayers of $18 billion since 2018. Additional investigations by Shirley uncovered massive fraud in medical transportation services, with some addresses housing multiple companies and no vehicles present.
GOP Representative Tom Emmer of Minnesota urged the deportation of fraudsters in a letter to Governor Tim Walz, noting that centers were receiving public funds through the Child Care Assistance Program (CCAP). In December, a federal health official warned sponsors of immigrants who had enrolled family members in Medicaid to repay costs for benefits used.
The Feeding our Future program alone defrauded taxpayers of more than $250 million, involving at least 78 defendants with 65 convictions. Since September, federal prosecutors have charged seven individuals in autism and housing fraud schemes. Data from the Center for Immigration Studies indicates that nearly 90 percent of Somali households in Minnesota receive public assistance. U.S. Citizenship and Immigration Services reported immigration fraud in 44 percent of cases it scrutinized, with 275 out of 500 cases identified as fraudulent through targeted site visits.
Somalia ranks as the second-most corrupt country globally according to the Corruption Perceptions Index.