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Minnesota Fraud Probes Intensify as State Says Daycare Sites Operated During Checks

Federal payments remain paused and prosecutors cite lavish spending in related cases as inspectors open new reviews following a viral video.

Overview

  • State investigators visited nine centers named in the video and reported operations as expected, with children present at all but one site that had not yet opened, while initiating further review.
  • Four of the referenced centers remain under investigation and the agency says it has 55 open cases involving providers receiving Child Care Assistance Program funds.
  • HHS temporarily halted federal child care payments to Minnesota on Dec. 30 pending audits and stricter verification of claims.
  • DOJ has charged at least 78 people in the Feeding Our Future case, with court records detailing luxury purchases including a $350,000 outlay tied to a Kenyan resort by defendant Liban Yasin Alishire.
  • Nick Shirley, the journalist behind the viral video, reports death threats and added security measures, and state officials note providers have faced harassment and one reported vandalism.