In Hennepin County, Minnesota, a daycare fraud operation has been brought to light, involving staged drop-offs by parents and fraudulent claims of childcare services. This scheme, which dates back over a decade, has recently gained public attention due to explosive surveillance footage from March 2015. The footage shows parents entering the daycare facilities with their children and then leaving almost immediately, without any childcare being provided.
The Federal Bureau of Investigation, under the direction of FBI Director Kash Patel, has intensified its efforts in Minnesota, deploying additional personnel and resources to address the extensive fraud within federal programs. The resurfaced video was first discovered in 2018, but has now become a focal point in the ongoing investigation into the misuse of public funds.
On December 28, 2025, Director Patel acknowledged the FBI’s proactive measures in Minnesota via a tweet, stating that the bureau was already working on dismantling large-scale fraud schemes prior to the social media escalation of the daycare fraud issue. Further, a tweet from journalist Ryan Saavedra on December 30, 2025, highlighted the fraudulent activities with a clip from the 2015 criminal case.
The scandal involves at least four daycare centers and has resulted in the theft of $1 million from government funds. Four individuals have been arrested, with Abdirizak Ahmed Gayre and Ibrahim Awgab Osman pleading guilty to felony theft by swindle as part of a plea agreement, which led to the dismissal of additional charges and a pledge by the state not to pursue charges against other potential defendants.
The recent events are not isolated; Minnesota has faced a series of public fund misuses. Among the significant cases is the Feeding Our Future scheme, where 78 individuals, 72 of whom are Somali nationals, have been charged for defrauding a federally funded nonprofit organization during the Covid-era.
Local residents and media reports have depicted the implicated daycare facility as a "ghost town," with very little activity observed during its supposed operational hours. Ibrahim Ali, son of the daycare’s owner, contested these claims, drawing an analogy to a coffee shop that appears empty when not yet open for business.
The FBI has reiterated its commitment to targeting fraud that exploits taxpayers and deprives children of necessary services. Director Patel emphasized that combating such fraud remains a top priority for the bureau, both in Minnesota and nationwide.
