This browser does not support the Video element.
MN fraud: FBI raids Somali-owned businesses
The FBI is conducting new raids on businesses in the Twin Cities on Tuesday amid an ongoing fraud investigations.
MINNEAPOLIS (FOX 9) - The FBI is conducting new raids on businesses in the Twin Cities on Tuesday amid ongoing fraud investigations.
FBI raids underway on Tuesday
What we know:
The FBI and the Department of Homeland Security Investigators are executing 22 court-approved search warrants in the Twin Cities related to federal fraud investigations.
Local agencies assisted with the searches including the Hennepin County Sheriff's Office and the Minnesota BCA.
Fox News' Bill Melugin reports that the warrants have been executed mostly at Somali-owned businesses. Melugin reports that the misspelled "Quality Learning Center," which rose to infamy after YouTuber Nick Shirley's video exposing alleged fraud at day care centers in the Twin Cities, is one of the spots that was raided on Tuesday. The day care reportedly closed for business in early January, not long after the video came out.
What they're saying:
FBI Minneapolis confirmed the raids in a statement, saying: "Today, the FBI with federal, state and local law enforcement is involved in court-authorized law enforcement activity as part of an ongoing criminal investigation."
In a tweet, Homeland Security Investigations issued a similar statement, writing: "HSI, in cooperation with its federal, state and local law enforcement partners, engaged in court-authorized law enforcement operations in the Minneapolis/St. Paul area. For reasons of operational security and for the safety of our agents, we will not comment further at this time."
Vice President JD Vance applauded the efforts of federal investigators, writing: "The task force and the DOJ will be relentless in exposing these fraudsters wherever they may be hiding."
Rep. Tom Emmer also shared a statement that read: ""President Trump and his administration have made it crystal clear - our country will not tolerate waste, fraud, and abuse, and we are not going to allow people to take advantage of Americans’ generosity. Thank you to the U.S. Department of Justice and the Department of Homeland Security for taking action against Somali fraudsters. Minnesotans and U.S. taxpayers across the nation are grateful."
This browser does not support the Video element.
MN fraud: FBI raids 22 sites, several day cares
Federal agents from the FBI and Department of Homeland Security executed search warrants at nearly two dozen Twin Cities businesses in a fraud probe. FOX 9 Crews observed agents entering several locations, including child care centers. Reporter Karen Sculling has the latest.
Gov. Walz, City of Minneapolis react to raids
The other side:
Gov. Walz added in a tweet: "If you commit fraud in Minnesota you’re going to get caught — and that’s exactly what we saw today. We catch criminals when state and federal agencies share information. Joint investigations work, and securing justice depends on it.
"Today’s raids by state and federal law enforcement happened because our state agencies caught irregular behavior and reported it. That’s how the system is supposed to work, and our agencies will keep at it as long as there are fraudsters around to put behind bars.
"Now let’s work on a joint investigation into the killings of Alex Pretti and Renee Good — instead of cherry picking when we seek justice and when we turn a blind eye."
The City of Minneapolis shared in its own statement that it was not involved in the federal operations and Minneapolis police had not been asked to assist in the raids.
The statement reads: "The City of Minneapolis is not involved in the federal operations being reported around Minnesota today, and as of 9:30 a.m., MPD has not been asked to assist with the execution of federal warrants. We understand that any federal actions in our neighborhoods may spark fear among residents, and we will continue to marshal City resources to help the community in the aftermath of Operation Metro Surge."
The State of Minnesota's Department of Children, Youth, and Families said: "Today's law enforcement actions are a result of state, county, and federal agencies working together to root out fraud and hold bad actors accountable. Each plays a role in protecting taxpayer dollars and we're seeing the strength of that collaborative working relationship in action.
"The Department of Children, Youth, and Families, works every day to protect program integrity. We are pleased to see the state’s Bureau of Criminal Apprehension and our federal partners taking strong action based on information we have shared with them. We will continue sharing information with law enforcement to ensure they are able to conduct thorough criminal investigations. Questions about the investigations should be directed to the criminal investigating agency."
Fraud in Minnesota
The backstory:
The FBI and HSI conducted similar raids in December on Medicaid providers as part of ongoing fraud investigations, as federal producers said fraud in Minnesota's fraud program could total more than $9 billion since 2018.
State officials have repeatedly pushed back on that claim, saying there's currently no evidence that fraud against the state's Medicaid program is that rampant. The fraud found in prosecuted cases so far only totals in the hundreds of millions of dollars.
This is a developing story and FOX 9 will provide updates as new details are available.