Minnesota investigators were 'bullied' into burying Somali childcare scam TEN YEARS ago before Tim Walz shut down anti-fraud office, whistleblower claims

By RACHEL BOWMAN, US SENIOR NEWS REPORTER Published: 21:34, 30 April 2026 | Updated: 21:35, 30 April 2026 A former Minnesota fraud investigator claimed that he was 'bullied' by state officials to cover up the Somali childcare scam nearly ten years ago. Jay Swanson, a former state trooper who ran a fraud investigations unit within Minnesota's Department of Human Services (DHS) from 2014 to 2018, delivered the bombshell testimony on Tuesday. His revelations came on the same day that federal agents raided more than 20 businesses as part of the Trump administration's crackdown on fraud in Minneapolis. Swanson told the Minnesota House Fraud Prevention and State Agency Oversight Policy Committee that the state 'tried to cover up fraud allegations' years before Governor Tim Walz was accused of shutting the investigations down. 'As I look back with the benefit of 2020 hindsight, I realized that what our team saw was the early stages of a somewhat loosely organized criminal enterprise beginning to pillage Minnesota's public benefit system,' Swanson said.  He revealed that his unit discovered it was common knowledge in Somali refugee camps that Minnesota was the best place to run a scam.   'They had heard you could run the scam in a number of different states, but it was easiest, and you could make the most money doing it in Minnesota,' he said. Swanson recounted several examples of children's care centers that were giving kickbacks and billing the state for millions of dollars even though they had no students. Former Minnesota fraud investigator Jay Swanson claimed that he was 'bullied' by state officials to cover up the Somali childcare scam nearly ten years ago Federal agents raided more than 20 businesses as part of the Trump administration's crackdown on fraud in Minneapolis on Tuesday He said when his team reported this finding, they were 'harassed and bullied' by officials. 'I soon had a senior DHS official in my office, angry, red-faced, and almost yelling. The senior DHS official told me to delete a number of paragraphs of the document. I then advised this official that I believed what they were telling me to do was illegal,' Swanson testified. 'I can't tell you how shocked we were to come to the Department of Human Services and learn after a few years that not only was the theft of untold millions of dollars tolerated, but those who tried to stop it would be subjected to the wrath of high-ranking department officials.' Swanson claimed that his unit's findings were ignored, and officials even hired a consultant to discredit them and 'shoved it under the carpet.' 'Their only goal was to destroy our unit,' he said. The Daily Mail contacted Minnesota's DHS for comment.  Donald Trump said Somalis were 'completely taking over' Minnesota and accused the community of widespread fraud, which prompted the massive, unprecedented immigration enforcement operation. The state was already under a microscope for fraudulent activity following the Feeding Our Future scandal. Swanson testified the state 'tried to cover up fraud allegations' years before Governor Tim Walz was accused of shutting the investigations down Donald Trump said Somalis were 'completely taking over' Minnesota and accused the community of widespread fraud, which prompted the massive, unprecedented immigration enforcement operation The Minnesota-based nonprofit had received $244 million from federal nutrition programs to feed low-income children and senior citizens between 2018 and 2021. Feeding Our Future received an influx of federal funds during the Covid-19 pandemic when the US Department of Agriculture waived some regulations for nutrition programs. Prosecutors found that the nonprofit had been using the funds for personal use, and over 63 individuals connected to Feeding Our Future were convicted on fraudulent charges, many of whom were of Somali descent. After Walz was named as Kamala Harris' running mate in 2024, Republicans accused him of allowing widespread fraud in the state. Walz created a new centralized fraud investigation unit last January in response to the allegations; however, the state continued to be a magnet for fraud allegations from the Trump administration. First Assistant US Attorney Joe Thompson announced in December that federal authorities estimated that fraud in Minnesota Medicaid programs may have cost taxpayers as much as $9 billion since 2018. Shortly after the announcement, conservative YouTuber Nick Shirley shared a viral video accusing the daycare with a misspelled sign - the Quality Learning Center - of receiving public funds without providing a service. Shirley's video prompted a wave of allegations against other Somali-owned daycares in Minneapolis and caught the attention of federal agents. The Quality Learning Center was featured in conservative YouTuber Nick Shirley's viral video last December. The daycare was accused of fraud and came under fire for a misspelled sign, pictured above  The daycare center denied the allegations at the time, but closed in January pending a license review, according to the Minnesota Department of Human Services. On Tuesday, federal agents seized records and other evidence connected with an investigation of publicly funded social programs for children. Sources told Fox News that around 22 businesses were raided, including the Quality Learning Center. The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? 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