Surveillance Reveals Parents' Role in Minnesota Daycare Fraud Scheme
Surveillance video from 2018 in Hennepin County, Minnesota, has revealed parents allegedly participating in a daycare fraud scheme dating back to March 2015. The footage shows parents checking their children in and leaving within minutes or, on some days, no families present while the daycare providers claimed reimbursements for services not actually provided.
This fraudulent activity was part of a larger scam involving low-income parents signing in to receive daycare services, while providers submitted false claims for reimbursements. The investigation is linked to a broader case known as the Feeding Our Future program fraud, a $250 million scheme that diverted child-nutrition funds into luxury spending, real estate, and kickbacks. To date, the federal investigation has resulted in 78 indictments and 57 convictions, with ongoing efforts to uncover additional wrongdoing.
FBI Director Kash Patel noted the agency has increased personnel and resources in Minnesota, warning this case might be only the beginning of a much larger issue. Authorities continue to track down illicit funds and aim to protect children involved.
A related conspiracy within the Feeding Our Future case included an attempt to bribe a juror with $120,000 in cash. The scandal has sparked public and political backlash, with criticism directed at Governor Walz's administration. The White House has cited Education Secretary Linda McMahon’s comments, describing the fraud as a "breathtaking failure." There are broader concerns about social-services fraud losses, with claims that at least $1 billion may have been lost, including fraud linked to Minneapolis’ Somali community.
The unfolding investigation and its repercussions continue to draw scrutiny to Minnesota’s daycare and social services systems.
