"Largest Fraud In The WORLD!" - Inside Nick Shirley's BILLION DOLLAR Minneapolis’ Daycare Fraud Bust
Episode Stats
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201.95177
Summary
On December 26th, 23-year-old YouTuber Nick Shirley went to a daycare facility in Minnesota and made a viral video that went viral. Since then, there have been allegations of fraud at daycares across the state. And now, CNN has come after him.
Transcript
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Here's the power of what social media does today.
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23 years old, you go and find out for yourself.
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You're not waiting on ABC, CNN, CBS, any of these guys.
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After asking questions yesterday, I believe it is, was it HHS, Rob, that came out yesterday?
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If I'm not mistaken, they came out yesterday and they stopped $185 million of funding to Minneapolis.
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This is a byproduct of what Nick Shirley did on December 26th.
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Alex oversees the Administration for Children and Families.
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Intrepid journalists have made shocking, incredible allegations of extensive fraud in Minnesota's child care programs.
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We believe the state of Minnesota has allowed scammers and fake daycares to siphon millions of taxpayer dollars over the past decade.
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My office, ACF, provides Minnesota $185 million in child care funds each year.
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That money should be helping 19,000 American children, including toddlers and infants.
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Any dollar stolen by fraudsters is stolen from those children.
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Yesterday, I spoke directly with the director of the Minnesota Child Care Services office.
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She could not tell me with confidence whether those allegations of fraud are isolated or whether there's fraud stretching statewide.
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Today, we have taken three direct actions against the blatant fraud that seems to be rampant in Minnesota.
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First, I have activated our Defend the Spend system for all ACF child care payments across America.
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Starting today, we require a justification, receipt, or photo evidence before we make a payment.
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The idea is $185 million stop because you independently went out there and created this content, exposed it to everybody.
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And then, allegedly, was it today that CNN came after you or was it yesterday?
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Yesterday, I showed up at Quality Leering Center.
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If you guys want to purchase the sweater, we're going to put the link below as well to the Quality Leering Center.
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Rob, let's make sure you put the link below as well to support what he's doing here.
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It doesn't look like they're happy for you doing their work.
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When they first came up to you, were they friendly?
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Yeah, the lady came up to me very friendly, and then she kept asking me these questions.
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Like, the issue wasn't what time I showed up to the daycare.
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The issue is that this building right here is receiving $1.9 million, and it's not even operating.
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And they're showing face right now while they're literally shuffling in kids while the commissioner of children is saying the daycare was closed last week.
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Back at a daycare in Minnesota, he alleged was a fraudulent facility in a now viral video.
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If you are going to say this is a left or right issue, no, fraud is fraud.
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I'm not out here trying to put a twist on things.
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Shirley's viral video released over the weekend in which he says he's uncovering tens of millions of dollars in fraud at Minneapolis daycares run by the Somali community was retweeted by Elon Musk and Vice President J.D. Vance.
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In the video, Shirley tries to open locked doors and talk to people at various daycares he claims are frauds.
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Did you come during their normal operating hours when you came to visit?
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And I also came the following day, later in the day.
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The point of it is not whether or not I came at the right, at the right time of their operation hours.
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The point is that blacked outdoors, they can't give you any information.
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There should be a way for somebody to actually be able to call that number and somebody be able to answer.
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But surely you don't think a daycare should just be unlocked.
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You shouldn't be able to just walk into a daycare.
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Then why can't they actually give me information how to enroll a child?
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Federal law enforcement has been investigating fraud in Minnesota for several years.
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Both Attorney General Pam Bondi and FBI Director Kash Patel said on social media they've indicted dozens of defendants.
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DHS has posted multiple videos of agents they say are conducting a massive fraud investigation.
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Do you think that federal law enforcement hasn't done enough?
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I mean, they would say, look, these fraud cases have been going on.
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I show up one day in Minnesota and go to all these daycares, no children.
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We uncovered nearly $110 million in fraud in one day.
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How do you know that all the allegations that you're making are true?
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And then you guys can go ahead and make your own analysis.
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We reached out to several of the daycares featured in the now viral video.
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Only one daycare facility answered and said they are original in the business.
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Have you seen the videos purporting that some of these daycares don't have kids inside?
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Minnesota Republicans say despite the new focus from the Trump administration,
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they have been sounding the alarm on fraud for years.
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We have tried to push this forward every way that we can.
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And you went back to Minnesota because you just told me that you're working on a part
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Oh, we found a lot more businesses that don't exist.
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We found daycares with more million-dollar daycares.
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I mean, there's literally hundreds of daycares receiving millions of dollars in Minnesota at
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So from the first one, you guys were over $100 million of fraud that you found, right?
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With the second one, now the recent one that you were there yesterday, how much more did
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I have to do all the numbers, which I'll do when I do all my editing.
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But at least around, at least another $10 million.
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So on the other side, while you're doing this, what caused you, and we see this man
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We keep seeing this man named David, who I think yesterday, he said, if you want to output
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$100,000 for anybody that can prove any of this wrong, because this is a government document,
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how did you and David, if, Rob, is this the clip where he says that?
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Anybody want to take me up to you, $100,000, if you can, if you can, if you can disprove
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So give me a copy of what you have, and I can, if you can, and I can do my information.
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Just keep your video on it, and just screenshot it while you're going.
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All those people out there defending the fraud, and then he gives them the option.
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How many of those people are on your side right there?
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None of those people you're hearing in the background.
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That's that Khadra Apshir that's recording you.
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So they're recording you, and he's offering $100,000 to go prove if any of these things
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David messaged me on Instagram, and out of the hundreds of DMs I get, I just opened David's,
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Because I've known about the fraud happening for so long in Minnesota.
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Back in June, I've known about the fraud, but it's hard for me to go out and get all
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the information because they make it very hard to get the information.
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Luckily, David had somebody inside the Capitol who's been leaking him all the numbers, leaking
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So all the numbers that David has are 100% correct, and also they're on the state, also
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But David told me he knew the numbers, and I said, okay, I'm coming to Minnesota.
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Line out some of the daycares you'd like to go see, because I know about the fraud.
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I just needed somebody like David to come, that's lived it, to be able to really solidify
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my claims and my ideas about the fraud that's happening.
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And this is David explaining the fraud, right, Rob?
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Massive fraud is going on here in the state of Minnesota, especially in Minneapolis.
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Explain to me what's going on with the daycares.
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So one of the things that I've noticed is there's an exceptional number of child care
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centers that are set up mostly in Minneapolis, but also in St. Paul.
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And I said, wow, this, I mean, how many kids are there in the Twin Cities?
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And I'd see just some guys, some Somali guys outside smoking cigarettes.
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And I said, hey, I'm just wondering, I've got a grandson who's looking for child care.
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There was like a couch and a table with a couple chairs.
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And I said, well, are the kids out back playing?
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And then he followed me down the street to my car.
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And that's when I said, wait a minute, there's something going on here.
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When the dust settles on this, it's going to be found to be the largest fraud in the
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You know, she's very comfortable doing this as well.
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So the largest fraud in the world, in America, on what he's talking about.
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And then you just said, why don't we just go interview?
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Yeah, I thought when we go, like, we'll walk to these daycares.
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But the first daycare we go to, all the windows are blacked out.
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And I try to open the door and nobody answered.
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And that daycare, they had two daycares running out of that same building.
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And they had both had two different contracts of more than a million dollars for these daycares.
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And I was very shocked to see that the response from the public after that was, oh, why is he going and knocking on these doors?
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We have a responsibility to know where our dollars are going.
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But it just went to show that the fraud is insane.
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And then the people are saying, well, that daycare is closed.
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Well, how come there's a sign that says it's open seven days a week from 7 a.m. to 10 p.m.?
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So the one that the CNN reporter claimed that you came after business hours, that you said you came at 11 to 5 o'clock, they have a sign that says they're open Monday through Sunday.
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I can't because it's a video, but it says open seven days a week, 7 a.m. to 10 p.m.
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Is that another misspelled Mako or is that really the name?
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I don't know, but what's funny about that is there's actually two child care companies inside that same building, but they're not showing the second one.
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And so they have two child care businesses operating that same room.
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This one together over the past few years, they have it right there.
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Somebody just stays there all day, no kids, and they just take the cash?
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That's why all the windows are all boarded up or why they're all blacked out.
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You know the video where parents would come, drop off the kids, and then take the kids out a minute later, not even drop them off.
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Maybe you can narrate to the audience what's going on here.
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So basically what they're doing inside these daycares, I don't doubt that there's one or two or a few children inside these daycares.
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It would be very stupid to be receiving millions of dollars and not bring at least a few kids to daycare every day.
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But what they're doing here is they're bringing in children, and then they're then just leaving after a few minutes of being inside the daycare.
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And I don't know if this is the same video where it shows the guy giving the cash to the ladies working.
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So there is one that says cash, that's the, they're showing that.
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Shows a man handing out envelopes of what are believed to be kickback payments to parents who are in on the fraud.
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Order for the scheme to work, the daycare center.
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So I'll come in, I register my kids, you're able to write them off to make money off.
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Then they come and give a kickback to the parents.
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So the problem with this is there's, these parents are no longer going to get payments and someone's going to call somebody out.
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It's not like this is a new thing that's happening.
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How many whistleblowers have been emailing you, DMing you, texting you, getting a hold of you?
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How many more whistleblowers have gotten a hold of you and David?
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It's been almost like overwhelming to go through all the messages, but there's the people in Minnesota are so fed up with this fraud.
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Because now finally somebody is actually getting it out to the national level.
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Because local journalists have been talking about it for years, but they've never been able to get it out to a national level like I was able to do.
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And if you talk about why they're just giving them cash, it's because the money they receive is tax-exempt, CCAP funding.
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And then these women that are working inside these daycares, they're not – my assumption is that they're not actually on payroll.
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And that's why 81% of the Somali population is on welfare inside the state of Minnesota is because they don't actually receive a W-2 or 1099, whatever it would be, to claim that they're actually receiving an income.
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Because if you're running a daycare of a million dollars, you should be able to pay your person a salary of at least $50,000, you know what I mean?
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No, not that I know of, because it doesn't make sense why there's so many people on welfare if they're making millions of dollars.
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I'm Nick Shirley, and you guys can find me here on Manect.
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Go ahead and ask me any questions, whether it be about politics, about what I believe, or where I think the future of the country will be going, or just, quite frankly, anything.
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I really appreciate all your support, and I can't wait to answer your questions.
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