Previously undisclosed surveillance video from a Minnesota fraud investigation shows parents briefly bringing their children to a day care center, signing them in, and then leaving with them minutes later, according to reporting tied to a state case that surfaced in 2018.
The footage, recorded in 2015 and later obtained by Fox 9, captures parents entering the facility to register their children so providers could submit claims to the state for full days of child care that allegedly never occurred. In several instances, families were seen departing almost immediately after checking in.
According to the outlet’s earlier reporting, there were also days when no children arrived at all, yet the day care centers still billed the government for reimbursement. Investigators alleged that some of the facilities involved provided kickbacks to participating parents.
Although the recordings date back to 2015, they did not become public until 2018. The videos have resurfaced recently amid renewed scrutiny prompted by a viral video from independent journalist Nick Shirley, who documented several Minnesota child care centers that had received millions in state funding while appearing to be inactive.
U.S. Education Secretary Linda McMahon described the alleged misconduct as a “breathtaking failure.”
In a separate clip also obtained by Fox 9, a man is shown handing an envelope to a parent, which authorities allege contained a kickback tied to the fraudulent activity.
Minnesota Gov. Tim Walz has also faced criticism over other alleged fraud cases connected to Medicaid-funded disability programs, including a housing initiative designed to assist seniors and individuals with disabilities in securing accommodations.
Investigators have said many of the schemes were linked to Minnesota’s migrant Somali community.
FBI Director Kash Patel said the bureau has sent additional personnel and investigative resources to Minnesota as part of an effort to “dismantle large-scale fraud schemes exploiting federal programs.”