Tag Archives: Minnesota daycare fraud

More Fraud

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On Friday, The New York Post posted an article about another bogus childcare center in Minnesota.

The article reports:

A Minnesota daycare center owner featured in YouTuber Nick Shirley’s viral video showcasing alleged bogus childcare facilities has admitted that she defrauded the US government out of millions of dollars — which she used, in part, to buy up real estate.

Fahima Mahamud, CEO of Future Leaders Early Learning Center in Minneapolis — which was featured in Shirley’s December video round-up of questionable facilities around the Twin Cities — pleaded guilty Thursday to one count of wire fraud and one count of conspiracy to defraud the US.

According to prosecutors, between October 2022 and November 2025, Mahamud filed claims for more than $4.6 million from the Child Care Assistance Program — a federal program that provides daycare assistance for low-income families — on behalf of recipients who never paid the required co-payment.

The article concludes:

Prosecutors said Mahamud claimed to serve tens of thousands of meals to hungry children at the center each month, but actually “served only a fraction of those claimed meals,” court documents state.

She closed down Future Leaders in February — and tried to flee the US for London two days later.

Mahamud’s sentencing date has not been set.

Aimee Bock, the mastermind behind the scheme, was handed a stunning four-decade prison sentence in May for helming what prosecutors called one of the largest pandemic-era fraud schemes in the country.

At least some of the people responsible for stealing taxpayer dollars are being held responsible. However, some of the blame needs to be placed on those charged with overseeing these programs. These are not small numbers, and the people in charge should have noticed that something was amiss (unless they were in on the scam).

One Person Can Make A Difference

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The Minnesota government fraud case has been in the headlines nationally recently. Power Line Blog has been reporting the story for years, but one young journalist is partially responsible for getting the story to the public.

On December 29, Scott Johnson posted an article at Power Line Blog about the corruption.

The article reports:

Bill Glahn, Lou Raguse, and other members of the local Twin Cities press have been covering the massive public-programs fraud committed by a large cast of almost exclusively Somali perpetrators for a while now. For those just tuning in, Bill points out — to take one example — that KSTP’s Jay Kolls knocked on alleged daycare doors in this January 2025 story.

YouTuber Nick Shirley has brought the daycare story to a national audience with the video he posted last week. Bill posted the video here on Power Line. The delayed detonation of this story represents another rendition of the Rufo effect. Like Chris Rufo’s linked City Journal column, the Shirley video implies that something must be done. An investigation must be conducted. Perpetrators must be held to account. This implication does a disservice to what has been done by the federal authorities to date. I tried to add this perspective to the story in “Minnesota’s Somali fraud problem.”

Shirley has a local guide named David. David alludes to frauds centered on St. Paul’s Grigg’s-Midway Building. One wouldn’t know from the video that the FBI executed search warrants and the United States Attorney brought an initial set of charges arising from the Griggs-Midway Building. I wrote about the searches here in July (“Another massive Minnesota fraud”) and the charges here in September (“The fraud this time”). The linked September post includes a video of the press conference announcing the charges.

Shirley acknowledges a recent FBI raid on an Eagan or Minneapolis office building at about 26:10 of the video. You can see the FBI at work lugging boxes of evidence removed from the building. Shirley also checks out the Griggs-Midway Building itself at 29:20 of the video.

Please follow the link to read the entire article. Now that the reporting of the fraud has gone national, those responsible need to be held to account. I think all of us are tired of hearing about massive government fraud, and then the story goes away. I am looking for orange jumpsuits!