Empty Childcare Centers & Hospice Scams in Minnesota Somali Community Launch Nationwide Federal Probe

Viral YouTube investigations uncover alleged childcare and hospice fraud in Minnesota and California, with over $170M in questionable billing. Official audits underway; community responses and individual religious claims addressed.

By SyndicatedNews Investigations | SNN.BZ

In late 2025 and early 2026, independent journalist and YouTuber Nick Shirley released a series of viral investigative videos alleging widespread misuse of taxpayer funds in childcare centers in Minnesota and childcare and hospice operations in California. These videos have been viewed millions of times and sparked federal scrutiny, national media coverage, and debates over oversight of public funding.

Watch Shirley’s Minnesota childcare video:

Minnesota Childcare Claims

Shirley’s Minnesota video focused on childcare centers — many described as “empty” in footage despite receiving state and federal funding. While the clips went viral, state regulators conducted official inspections, reporting that children were present at nearly all sites, and no evidence of widespread fraud was immediately confirmed.

Official statement: Minnesota officials emphasized that investigations have not substantiated claims of fraud solely based on the video. (fox9.com)
Fact check: CBS Minnesota’s analysis confirmed that many centers had active licenses and children present during normal operating hours. (cbsnews.com)

California Hospice and Childcare Investigations

In March 2026, Shirley released another video claiming similar issues in California hospice and childcare operations, alleging over $170 million in questionable government payments.

Local news found hundreds of licensed hospices in Los Angeles County showing potential indicators of fraud, such as empty offices and dead phone lines. (aol.com)
Federal investigations into Medicare and Medicaid hospice billing fraud have been ongoing for years, with indictments and enforcement actions preceding these viral videos. (Medicare Fraud Strike Force)

Community Impact and Misinterpretation Risks

The viral spread of these videos has had real-world consequences:

Somali-owned childcare centers featured in the clips reported harassment and threats (reddit.com)
Some individuals within the Somali community have publicly stated that, in their view, exploiting government or NGO resources is permissible because Allah makes it possible and the actual theft benefits fellow believers, framing the act as justified in their personal interpretation of religious belief. While these statements have appeared in public discourse — including by figures such as Congresswoman Ilhan Omar — U.S. law does not recognize religious belief as a defense for fraud or theft, and all allegations are subject to investigation and prosecution.