Federal law enforcement agencies executed 22 search warrants across the Minneapolis-St. Paul on Tuesday morning as part of an ongoing investigation into fraud in publicly funded social programs for children.
The FBI led the operation, assisted by Homeland Security Investigations, the Minnesota Bureau of Criminal Apprehension, the Department of Children, Youth, and Families, and other state and local partners, including the Hennepin County Sheriff's Office. Targets included child care centers, daycares, and autism service providers that receive Medicaid funding and reimbursements from programs like the Child Care Assistance Program and Early Intensive Developmental and Behavioral Intervention services.
Specific locations raided included the Quality Learning Center in Minneapolis, which had received nearly $8 million in reimbursements despite 95 licensing violations from 2019 to 2023, as well as Metro Learning Center, The Original Childcare Center, and sites in Shakopee, Mendota Heights, Savage, and Fridley. Agents were observed removing boxes of records and evidence, with one crew using a battering ram at a daycare.
A Department of Justice spokesperson stated, "Today, the FBI, with federal, state, and local law enforcement, is involved in court-authorized law enforcement activity as part of an ongoing fraud investigation." Homeland Security Investigations posted on social media, "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." The agency emphasized, "The American people deserve to know how their taxpayer money was abused."
No arrests were made during the raids, and officials provided few additional details due to the ongoing probe. The operation is not connected to immigration enforcement.
Minnesota has faced scrutiny over welfare fraud, particularly in child nutrition and social services programs serving immigrant communities. Previous cases resulted in at least 65 convictions, many involving Somali Americans defrauding a federal food program. Up to $9 billion in federal funds for state-run programs since 2018 may have been misused. The state identified hundreds of autism centers for review, with 85 now under investigation.
Governor Tim Walz praised the joint effort, saying, "If you commit fraud in Minnesota, you’re going to get caught, and that’s exactly what we saw today." He added, "We catch criminals when state and federal agencies share information. Joint investigations work." Republican U.S. Rep. Tom Emmer commended the Trump administration: "President Trump and his administration have made it crystal clear our country will not tolerate waste, fraud, and abuse."
Minnesota Department of Human Services Commissioner Shireen Gandhi expressed gratitude for the prosecutions, noting actions against those who "steal from essential programs designed to help the state’s most vulnerable people." The raids follow Governor Walz's February anti-fraud package, amid federal concerns that prompted threats to withhold Medicaid funds.
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