Federal agents raid Minnesota businesses in ongoing social services fraud investigation

MINNEAPOLIS (CN) — Federal law enforcement executed a series of search warrants across the Twin Cities Tuesday as part of continuing fraud probes, according to the investigative arm of the Department of Homeland Security.

Reports indicate FBI and Homeland Security Investigations agents conducted more than 20 federal searches, primarily targeting childcare facilities that receive federal funding, though few details have been released.

Officials said the raids were not a part of immigration enforcement, which were widespread this year in the area and left two U.S. citizens dead at the hands of federal agents, but the action does indicate a likely return to a focused federal effort on investigating social services fraud in Minnesota.

The “Quality Learning Center,” which gained national attention after YouTuber Nick Shirley claimed to have uncovered millions in fraud at the location in a viral video, was reportedly among the locations raided Tuesday.

In a statement posted to X, Homeland Security said the warrants relate to “the rampant fraud of American taxpayers dollars.”

Vice President JD Vance, leader of the recently appointed antifraud task force, said: “The task force and the DOJ will be relentless in exposing these fraudsters wherever they may be hiding.”

Federal officials, and Minnesota Governor Tim Walz, noted these investigations are being conducted in cooperation with local law enforcement partners — a significant shift from the lack of collaboration seen during the immigration enforcement Operation Metro Surge.

Walz, who announced an antifraud package for the state in February, reinforced his stance against fraudsters Tuesday.

“If you commit fraud in Minnesota you’re going to get caught — and that’s exactly what we saw today. We catch criminals when state and federal agencies share information. Joint investigations work, and securing justice depends on it,” Walz said in a post on X, using the opportunity to call for further action over the deaths in January.

“Now let’s work on a joint investigation into the killings of Alex Pretti and Renee Good — instead of cherry picking when we seek justice and when we turn a blind eye,” he added.

John Stiles, deputy chief of staff for Minnesota Attorney General Keith Ellison, told Courthouse News in an email the office’s Medicaid Fraud Control Unit was involved in serving five search warrants on businesses that get Medicaid funding for autism services.

The City of Minneapolis said it is not involved in the federal operations, and the Minneapolis Police Department has not been asked to assist with the execution of federal warrants.

“We understand that any federal actions in our neighborhood may spark fear among residents, and we will continue to marshal city resources to help the community in the aftermath of Operation Metro Surge,” the city said on X.

House Majority Whip Tom Emmer, a Minnesota Republican whose congressional district borders the Twin Cities, celebrated the federal effort.

“President Trump and his administration have made it crystal clear, our country will not tolerate waste, fraud and abuse, and we are not going to allow people to take advantage of Americans’ generosity,” he said. “Thank you to the U.S. Department of Justice and the Department of Homeland Security for taking action against Somali fraudsters. Minnesotans and U.S. taxpayers across the nation are grateful.”

President Donald Trump has made a national crackdown on fraud a cornerstone of his agenda, especially amid numerous fraud claims involving Somali-run daycare centers in Minneapolis.

The most noteworthy fraud investigation in the Twin Cities, the pandemic-era $250 million Feeding Our Future scandal, has resulted in convictions of more than 60 people, many of Somali descent.

In February, the Trump administration announced plans to temporarily halt $243 million in Medicaid funding to Minnesota over fraud concerns, sparking legal action from the state.

Walz, who dropped his reelection campaign this year in large part over scrutiny about social services fraud, has repeatedly called the federal focus on the North Star State a “campaign of retribution” and said the Trump administration is weaponizing the federal government to punish blue states.

The Justice Department did not immediately respond to a request for comment.