Nick Shirley drops an explosive Part II of his fraud investigation in Minnesota

By THE ALASKA STORY

Independent journalist Nick Shirley released part two of his investigation into alleged widespread fraud tied to Minnesota’s welfare and childcare systems on Wednesday, adding new claims that tens of millions of taxpayer dollars have been diverted as welfare payments through shell businesses and empty facilities tied to the state’s Somali business network.

Shirley’s latest 51-minute video, produced with longtime fraud investigator David Hoch, alleges more than $16 million in additional fraudulent welfare payments, following his December report that showed over $110 million was improperly distributed through Minnesota’s Child Care Assistance Program.

“In this video David and I expose another $16 million in fraud as Minnesota welfare programs continue to operate fraudulently and steal from law-abiding taxpayers,” Shirley said in a statement accompanying the release.

Nick Shirley explains why mainstream media missed fraud that a kindergartener could have found

The new footage shows Shirley and Hoch visiting what state records list as Safari TransportationandAdvanced Mobility, businesses that have received millions in Minnesota welfare and transportation payments. At one Minneapolis location, the pair found no evidence that a transportation company was operating at the address.

“On the state’s website, it says it’s in Suite 224,” Hoch said in the video. “But it’s a one-story building. None of the suites had the number 2 on them. It doesn’t exist.”

Instead, Shirley said the site appeared to be functioning as a money-wiring operation, rather than a transportation service.

“This is fraud. This is supposed to be Safari Transportation,” Shirley said on camera.

Shirley had earlier exposed several daycare centers featured in his original investigation. One facility, Quality Learning Center in Minneapolis, is listed by the state as caring for 102 children and receiving $2.66 million this year and $2.5 million last year in public funding. Video shows the building empty during business hours.

“We’re just wondering where the children are,” Hoch said to a worker who confronted them. “It says you have 102 children here, and you got $2.66 million this year in funding. We’re just wondering where the kids are.”

In the original December video, Shirley attempted to enroll a fictitious child at multiple Minnesota daycare centers that had received large public payments. He reported being turned away at several locations without being given enrollment information, while other sites appeared unstaffed during their posted hours.

The owner of Quality Learning Center has disputed Shirley’s claims, saying Shirley visited outside normal operating hours, which the owner says run from 2 pm to 10 pm, Monday through Thursday.

Shirley, a 23-year-old independent reporter, has become a national figure following the release of his first investigation, the video of which went viral, drawing reactions from Elon Musk, President Donald Trump, and Vice President JD Vance.

After the allegations surfaced, the Trump Administration paused childcare payments to Minnesota pending federal review. The Department of Homeland Security also announced what it called its largest immigration enforcement operation ever in Minneapolis, citing organized fraud tied to immigration and benefit programs.

Democrat Al Sharpton has now declared that Minnesota has become a police state due to the Trump Administration immigration enforcement activities.

As the scandal widened, Minnesota Governor Tim Walz dropped his re-election campaign, saying he needed to focus on “defending the people of Minnesota against the criminals who prey on our generosity and the cynics who prey on our differences.”

Shirley has said more videos and documentation are forthcoming as federal investigations continue.