Newly resurfaced surveillance footage from a Minnesota fraud investigation shows parents dropping children off at a Minneapolis day care, signing them in, and then leaving with the children moments later. The footage offers a stark visual illustration of what federal and state authorities now describe as a sprawling, billion-dollar fraud operation exploiting public child care programs.

The video, recorded in 2015 and obtained by FOX 9 during a 2018 state fraud case, captures parents entering a child care facility, briefly checking their children in, and exiting almost immediately. Investigators say the scheme allowed providers to bill the state for full days of care for children who never actually attended.

On some days, according to reporting at the time, no families appeared at all, yet the day cares still submitted reimbursement claims to the government.

Additional surveillance footage obtained by FOX 9 shows an apparent kickback operation tied to the alleged fraud. In one clip, a man is seen handing an envelope to a parent, which investigators believe contained cash payments for participating in the scheme.

The day care at the center of the footage, Quality Learning Center in Minneapolis, became emblematic of broader concerns surrounding Minnesota’s oversight of publicly funded child care programs. The clips — dormant for years — have now resurfaced amid renewed outrage triggered by a viral video from independent journalist Nick Shirley, who documented multiple Minnesota child care centers that received millions in state funding despite appearing largely inactive.

The renewed scrutiny has drawn national attention and federal involvement. U.S. Education Secretary Linda McMahon described the alleged failures as a “breathtaking failure” of oversight.

Minnesota authorities began investigating suspected child care fraud as early as 2014. By 2018, officials were probing dozens of businesses accused of siphoning millions in public funds for services never rendered. Prosecutors allege that fraudulent day care operators inflated attendance records and, in some cases, paid parents to falsely enroll children.

The schemes have been largely tied to Minnesota’s migrant Somali community, a fact that has intensified political and social tensions surrounding the investigations. Several of the most prominent fraud cases in the state over the past decade, including the Feeding Our Future scandal, have involved similar allegations of systemic abuse of government programs.

Minnesota Gov. Tim Walz has faced mounting criticism over repeated fraud revelations across multiple state-administered programs, including Medicaid-funded disability services and housing assistance initiatives designed to help seniors and people with disabilities relocate.

Federal authorities are now stepping in forcefully. FBI Director Kash Patel confirmed that the bureau has surged personnel and investigative resources into Minnesota as part of a broader effort to “dismantle large-scale fraud schemes exploiting federal programs.”

Patel warned that the child care allegations represent “just the tip of a very large iceberg,” signaling that additional charges and cases are expected. He also issued a blunt warning to convicted offenders who are not U.S. citizens, saying deportation would be pursued where legally permissible.

(YWN World Headquarters – NYC)