MxM News

A Minneapolis day care run by Somali immigrants is claiming that a mysterious break-in wiped out its most sensitive records, even as police say officers were never told that anything was actually stolen — a discrepancy that’s drawing sharp attention amid Minnesota’s spiraling child care fraud scandal.

According to the center’s manager, Nasrulah Mohamed, someone forced their way into Nakomis Day Care Center earlier this week by entering through a rear kitchen area, damaging a wall and accessing the office. Mohamed told reporters the intruder made off with “important documentation,” including children’s enrollment records, employee files, and checkbooks tied to the facility’s operations.

But a preliminary report from the Minneapolis Police Department tells a different story. Police say no loss was reported to officers at the time of the call. While the department confirmed the center later contacted police with additional information, an updated report was not immediately available.

Video released by the day care purporting to show damage from the incident depicts a hole punched through drywall inside what appears to be a utility closet, with stacks of cinder blocks visible just behind the wall — imagery that has only fueled skepticism as investigators continue to unravel what authorities have described as one of the largest fraud schemes ever tied to Minnesota’s human services programs.

Mohamed blamed the alleged break-in on fallout from a viral investigation by YouTuber Nick Shirley, who recently toured nearly a dozen Minnesota day care sites while questioning whether they were legitimately operating. Shirley’s video has racked up more than 110 million views. Mohamed insisted the coverage unfairly targeted Somali operators and said his center has since received what he described as hateful and threatening messages.

A manager at the Nokomis Daycare Center in Minneapolis detailed "extensive vandalism" at the facility during a Wednesday news conference.

Manager Nasrulah Mohamed reported that the suspect stole important employee and client documents, an incident he attributed to YouTuber Nick… pic.twitter.com/71nNTSXdTT

— FOX 9 (@FOX9) December 31, 2025

“This is devastating news, and we don’t know why this is targeting our Somali community,” Mohamed said, calling Shirley’s reporting false. Nakomis Day Care Center was not among the facilities featured in the video.

The break-in claim surfaced as law enforcement and federal officials continue to expose a massive fraud network centered in Minneapolis, involving food assistance, housing, and child care payments. Authorities say at least $1 billion has already been identified as fraudulent, with federal prosecutors warning the total could climb as high as $9 billion. Ninety-two people have been charged so far, 80 of them Somali immigrants.

Late Tuesday, the U.S. Department of Health and Human Services announced it was freezing all federal child care payments to Minnesota unless the state can prove the funds are being used lawfully. The payments totaled roughly $185 million in 2025 alone.

Minnesota Gov. Tim Walz, under intensifying scrutiny for allowing fraud to metastasize for years, responded by attacking the Trump administration rather than addressing the substance of the findings. “This is Trump’s long game,” Walz wrote on X Tuesday night, claiming the administration was politicizing fraud enforcement to defund programs — despite federal officials pointing to documented abuse and ongoing criminal cases.

Meanwhile, questions continue to swirl around facilities already flagged by investigators. Reporters visiting several sites highlighted in Shirley’s video found at least one — Quality “Learing” Center — operating with children inside despite state officials previously saying it had been shut down. The Minnesota Department of Children, Youth, and Families later issued a confusing clarification, saying the center initially reported it would close but later claimed it would remain open.

As Minnesota scrambles to respond to the funding freeze and mounting arrests, the conflicting accounts surrounding the Nakomis Day Care incident underscore a broader problem confronting state leaders: a system so riddled with gaps and contradictions that even basic facts — like whether records were actually stolen — are now in dispute, while taxpayers are left holding the bill.

MxM News

The Trump administration has cut off all federal child care payments to Minnesota, ordering a sweeping audit of the state’s day care system as investigators dig into what officials describe as one of the largest fraud schemes ever tied to social service programs.

“We have frozen all child care payments to the state of Minnesota,” Deputy Health and Human Services Secretary Jim O’Neill wrote Tuesday afternoon, saying the move comes after mounting evidence that taxpayer dollars were being siphoned to sham or non-operational day care centers. The freeze follows a viral investigative video that put a national spotlight on facilities across Minneapolis that were receiving large sums of public money despite appearing closed or barely functioning.

According to Alex Adams, assistant secretary at HHS’s Administration for Children and Families, Minnesota has already received roughly $185 million in federal child care funding this year alone. Those funds, the administration says, will remain locked down until the state can demonstrate that payments are being used lawfully. “Funds will be released only when states prove they are being spent legitimately,” Adams said.

We have frozen all child care payments to the state of Minnesota.

You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade.

Today we have taken three actions… pic.twitter.com/VYbyf3WGop

— Deputy Secretary Jim O'Neill (@HHS_Jim) December 30, 2025

O’Neill accused Minnesota officials of allowing abuse to fester for years, alleging the state has “funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade.” To halt further losses, HHS outlined a series of immediate enforcement steps. Going forward, states seeking reimbursement through the Administration for Children and Families will be required to provide receipts or photographic proof documenting how funds are spent.

The department has also formally demanded that Gov. Tim Walz order a “comprehensive audit” of the day care centers flagged by investigators. O’Neill said the review must include attendance records, licensing documents, complaints, investigative files, and inspection reports. He pointed directly to a video published Friday by YouTuber Nick Shirley, who visited multiple Minneapolis-area centers listed as receiving millions in public funds but found locations that appeared closed or inactive.

In addition, HHS has launched a dedicated fraud hotline and email address at childcare.gov to encourage tips from parents, providers, and the public. “We have turned off the money spigot and we are finding the fraud,” O’Neill said, urging anyone with information to come forward.

Federal prosecutors say the scope of the alleged abuse is staggering. Authorities have already confirmed at least $1 billion in fraud tied to Minnesota child care programs, with 92 people charged so far. The U.S. Attorney’s Office has warned the total could ultimately reach as high as $9 billion as investigators continue combing through records.

The funding freeze marks one of the most aggressive crackdowns yet by the Trump administration on state-run social programs accused of lax oversight, sending a clear message that federal dollars will not flow until Minnesota can account for where the money went — and who was cashing in.