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Minnesota officials and a daycare manager denied allegations of fraud Monday after a viral video interrogated state-funded daycare centers, with both sides contesting allegations that the center is closed or improperly collecting taxpayer money.
The allegations stem from a viral video posted by freelance journalist Nick Shirley showing visits to several Minnesota day care facilities, including the Quality Learning Center in Minneapolis, which appeared to be out of business during the visit despite receiving federal child care assistance funds.
At a news conference Monday, Minnesota Department of Children, Youth and Families Commissioner Tikki Brown said preliminary inspections of the facilities did not reveal fraud and that regulators are making additional unannounced visits to review concerns raised by the video.
“We’re aware of the video that’s been circulating that’s gotten local and national attention about Minnesota day care centers,” Brown said. “While we have questions about some of the methods used in the video, we take very seriously the concerns the video raises about fraud.”
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Freelance reporter Nick Shirley went to a daycare center to inquire about child care, but found most of the centers empty. (Fox Stories)
Brown said each facility mentioned in the video has been visited at least once in the past six months as part of the state’s licensing process, with annual unannounced inspections to assess general operations.
He also added that inspectors found children present during the visit and that no previous review revealed fraud.
“None of these investigations have resulted in fraud,” Brown said, adding that there is currently no suspension of payments to the institutions mentioned in the video.
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Brown also acknowledged questions about the timing of the video visit, noting that regulators wanted clarity on whether the video was recorded during business hours or on days when facilities were scheduled to be open.
Meanwhile, the manager of the Quality Learning Center dismissed the allegations, saying that the video misrepresents the center by recording outside hours and lies that the business is not working.
The Commissioner of the Minnesota Department of Children, Youth and Families, Tikki Brown, denied that any fraud had taken place, despite a recent report by independent reporter Nick Shirley. (Pool)
“There is no fraud going on,” said Ibrahim Ali, the manager of the center. “Kids come to us, customers come to us, their parents come to us – they’re here every day, they leave on time, they arrive on time. There’s no fraud going on.”
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Ali said the center operates from Monday to Thursday from 2pm to 10pm, mainly for out-of-school children, and has been open for more than eight years without interruption.
He also disputed allegations made during the state forum that the center was closed due to local concerns, saying that was false.
Quality Learning Center manager Ibrahim Ali has denied that any fraud has taken place, despite a recent report by independent journalist Nick Shirley. (Pool)
“We never close. We never close,” said Ali. “There was never a time when the children were told to stop coming. We never told our staff to stop coming. All of that is false information.”
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Ali said the scrutiny was hurting business and the Somali community at large, saying the allegations were inflated without evidence and were unfairly linked to nationalism.
“Are you trying to record that we are cheating or are you trying to put the name Somalia and fraud in the same sentence?” Ali said. “That’s what hurt us the most the last few days.”
State officials said visits to additional sites were ongoing and stressed that any physical evidence of fraud would be investigated, while Ali invited media and inspectors to return during business hours to observe routine operations.
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The response follows the release of a 42-minute video of Shirley, posted Friday on X and YouTube, documenting visits to day care centers around the state, including a facility on Nicollet Avenue in Minneapolis.
In the video, Shirley and another man are seen in what appears to be a defunct daycare center. The building also displays a misspelled sign that reads “Quality Learning Center,” even though the center is reportedly supposed to serve 99 children and has a budget of $4 million.
During an appearance Sunday on Fox News’ “The Big Weekend Show,” Shirley said the allegations of fraud in Minnesota were “so obvious” that “a kindergarten could find that there was fraud going on.”
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Tim Walz speaks on stage during the 2025 SXSW Conference and Festival at the Austin Convention Center on March 8, 2025, in Austin, Texas. (Tibrina Hobson/Getty Images)
Shirley also suggested that other journalists may be reluctant to pursue similar reporting for fear of being labeled “Islamophobic” or “racist.”
“Fraud is fraud, and we work hard just to pay taxes and make fraud happen,” he said.
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The video sparked widespread backlash, prompting criticism of Minnesota Gov. Tim Walz throughout the weekend from several high-profile figures, including Vice President JD Vance, Rep. Mike Lawler, RN.Y., Donald Trump Jr. and Elon Musk.
Fox News Digital’s Sophia Compton contributed to this report.
