Federal agents raid nearly two dozen Minnesota businesses in fraud investigation

Federal agents executed 22 search warrants across the Minneapolis area April 28 as part of a sweeping investigation into suspected fraud involving businesses that allegedly billed the government for services not provided, the Department of Justice (DOJ) confirmed to multiple outlets.

In a statement to FOX News, a DOJ spokesperson said, “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.” 

FOX reported, citing sources familiar with the matter, that two of the raids were conducted at the Quality Learning Center and Baby Halimo Child Care. The Quality Learning Center — which misspelled the word “learning” on its signage — previously drew national attention after YouTuber Nick Shirley released a viral video that appeared to show non-operational daycare sites that nonetheless received substantial government funding.

The raids are tied to broader alleged fraud schemes uncovered in the state, including a major case involving the nonprofit Feeding Our Future, as Zeale News previously reported. Prosecutors alleged the group siphoned more than $250 million in taxpayer dollars during the COVID-19 pandemic through fake meal sites, shell companies, and false invoices linked to meal distribution programs and some child care centers.

At least 65 individuals have been criminally charged in connection with related schemes. The Trump administration has estimated total fraud in Minnesota at as much as $19 billion, according to the New York Post.

In his February State of the Union address, President Donald Trump announced a “war on fraud” and said Vice President JD Vance would lead a task force to carry out the effort. As Zeale News reported, he singled out Minnesota as a major example, saying that “members of the Somali community have pillaged an estimated $19 billion from the American taxpayer.” 

Vance commented on the raids in an X post, saying the task force and DOJ would “be relentless in exposing these fraudsters wherever they may be hiding.”