Alleged “Ghost” Daycare Centers in Minnesota Add Up to Billion-Dollar Fraud Scandal
Viral Investigation Exposes Empty Centers Receiving Millions
A series of social media videos released in recent days by independent journalist Nick Shirley has focused scrutiny on Minnesota’s taxpayer funded child care assistance programs.
The videos allege widespread fraud involving empty child care facilities that have collectively received tens of millions in taxpayer dollars.
But potential fraud surrounding Somali-owned day care centers dates back years.
In the new videos, Shirley is accompanied by a longtime local investigator identified as David – who says he has monitored these sites for years noticing no children (but sometimes adults outside smoking).
Shirley and David visit several Minneapolis daycare centers during business hours, finding locked doors, blacked-out windows, and no signs of children despite licenses for dozens or even hundreds of kids.
The investigation comes as federal prosecutors describe “industrial-scale” fraud across Minnesota’s social services, potentially exceeding $1 billion, much of it linked to the state’s large Somali community.
Read on for details
Above: Online journalist Nick Shirley visiting a Minnesota Day Care Center
At the center of the allegations are funds from the Child Care Assistance Program (CCAP). This is a mix of federal and state taxpayer money designed to help low-income families.
Shirley claims his team documented over $110 million in questionable payments in a single day of visits.
David, who says has faced threats including a stabbing during his own prior inquiries, told Shirley he began suspecting fraud after repeatedly driving by these locations and seeing no activity.
“I would drive by these childcare centers in the middle of the day and there were never any kids there,” he said in one video. “That’s when I started asking, where are these children?”
Shirley’s investigation has gone viral, prompting outrage from figures like Rep. Tom Emmer (R-MN), who demanded answers from Gov. Tim Walz, a Democrat and former Vice Presidential candidate. Tesla CEO and head of X Elon Musk is calling for Walz’s prosecution.
Federal authorities, including a newly announced Labor Department “strike team,” are probing broader welfare fraud, while some reports suggest misused funds have been wired overseas.
Centers Highlighted in Recent Investigations
Shirley’s reporting focused on several facilities in Minneapolis, many in Somali-heavy neighborhoods, that appear non-operational yet have received substantial CCAP funds:
Quality Learning Center (2800 Nicollet Ave, Minneapolis; phone listings: 612-871-2222) – Notably misspelled as “Learing” on its sign, licensed for up to 99 children. No kids visible; staff hostile and denied entry. Received approximately $1.9 million in FY 2025 alone, with totals around $4 million from 2023-2025. Accumulated 95 state violations (2019-2023), including unsafe conditions and missing child records.
Future Leaders Early Learning Center (2738 Lyndale Ave S, Minneapolis; 612-871-6666) – Empty during visits; denied access. Pulled in about $3.6 million in FY 2025 and similar amounts prior, totaling roughly $6.7 million recently.
ABC Learning Center (2524 Nicollet Ave S, Minneapolis; 612-871-1234) – Licensed for 40 kids but locked and deserted. Received around $1.4 million in FY 2025, with multi-year totals nearing $3.8 million.
Sweet Angel Child Care (2814 Grand St NE, Minneapolis) – Only brief sightings of minimal activity; violent reactions to questions. Collected about $1.3 million in recent years.
Super Kids Daycare Center (formerly Creative Minds; 2817 Lyndale Ave S, Minneapolis; 612-872-2222) – Reopened after prior issues; empty lots and unused buses. Around $2.5 million in FY 2025.
Mako Child Care (and affiliated Mini Child Care; 2520 Nicollet Ave, Minneapolis) – Combined license for 120 children; building locked. Multi-year totals exceeding $5.5 million.
Minnesota Child Care Center (and Nuna; 312 West Lake St, Minneapolis; 612-871-5555) – Licensed for 102; completely empty. About $2.7 million in FY 2025.
Earlier Cases with Proven Fraud
Questions of fraud involving Somali-run day care centers date back years. State records show dozens of ongoing federal investigations into CCAP providers.
While not all centers are accused of wrongdoing, the pattern of empty buildings and high payouts has fueled calls for immediate audits and stricter oversight.
Gov. Walz has acknowledged the issue as “furious-making” but faces criticism for slow action.
Earlier allegations surround these centers:
Salama Child Care Center (formerly 2424 Nicollet Ave S, closed) – Over $1.4 million fraudulently billed by overclaiming attendance.
Ace Daycare (2400 Park Ave, closed) – More than $400,000 in fraudulent claims.
Deqo Family Center LLC (2407 Hennepin Ave, owners fled) – Around $3.5 million misused.
Ummah Child Care Center (2528 Park Ave, closed) – Hundreds of thousands overbilled for absent children.
Mumtaaz Family Day Care Center (2416 Park Ave, closed) – Owner pleaded guilty to smaller-scale fraud.
This is ridiculous. As a lifelong Minnesotan, I have had to sell my house and downsize because I could not afford the property taxes. I have had to start side hustles just to pay my state income taxes. Retirement before 70 is a pipe dream.
We are not "Minnesota Nice," we are Minnesota Fleeced!"
And, no one responsible for allowing this fraud to continue will go to jail.
Welcome to our "new normal," The Land of 10,000 Fakes!
Don't expect 60 Minutes to report or investigate this story.