Federal authorities executed 22 search warrants at nearly two dozen facilities in Minneapolis on Tuesday as part of an ongoing fraud investigation. The raids, conducted by the FBI, Department of Homeland Security (DHS), and other agencies, targeted primarily Somali-linked businesses, including childcare centers like the Quality Learning Center, which has been accused of fraudulently billing for services not provided.
The Justice Department confirmed the raids were court-authorized and part of an investigation into alleged fraud in publicly funded social programs. DHS stated the operation was aimed at addressing "rampant fraud of U.S. taxpayers' dollars." No arrests were made during the raids.
The investigation follows concerns about widespread fraud in Minnesota's Medicaid and childcare programs, with federal prosecutors estimating Medicaid fraud alone may have cost taxpayers $9 billion. Earlier this year, Vice President J.D. Vance announced a temporary halt to $243 million in Medicaid funding to Minnesota over fraud concerns, prompting a lawsuit from the state. Minnesota Governor Tim Walz has expressed willingness to cooperate with federal investigations but criticized the political targeting of the state.
The raids come amid heightened scrutiny of fraud schemes in Minnesota, including the Feeding Our Future scandal, where 92 people have been charged since 2021. Independent journalist Nick Shirley's viral videos, which exposed alleged fraudulent operations, have drawn national attention to the issue. Republican lawmakers, including House Majority Whip Tom Emmer, have praised the federal action, while critics argue the focus on Somali-owned businesses may be politically motivated.