Federal auth0r1t1es 1n M1nnes0ta have launched 0ne 0f the largest fraud 1nvest1gat10ns 1n the h1st0ry 0f the state after unc0ver1ng a sprawl1ng netw0rk 0f allegedly fake ch1ld care centers ass1sted l1v1ng h0mes and pandem1c rel1ef bus1nesses that 1nvest1gat0rs say s1ph0ned hundreds 0f m1ll10ns 0f d0llars fr0m publ1c pr0grams 1ntended t0 help vulnerable fam1l1es and ch1ldren.

The case erupted 1nt0 publ1c v1ew 0n a qu1et m0rn1ng 1n Br00klyn Park when unmarked federal veh1cles surr0unded a small br1ck bu1ld1ng that appeared t0 be an 0rd1nary daycare center.

C0l0rful letters dec0rated the w1nd0ws and a playgr0und st00d beh1nd the bu1ld1ng.

The s1gn 1dent1f1ed the bus1ness as Creat1ve M1nds Daycare.

W1th1n m1nutes agents fr0m the Federal Bureau 0f Invest1gat10n Imm1grat10n and Cust0ms Enf0rcement and the Department 0f Health and Human Serv1ces entered the pr0perty t0 execute a search warrant.

The ra1d was part 0f a c00rd1nated 0perat10n that struck m0re than twenty l0cat10ns acr0ss the Tw1n C1t1es reg10n at the same h0ur.

Invest1gat0rs bel1eved the bu1ld1ngs f0rmed part 0f a gh0st netw0rk 0f l1censed ch1ld care centers that b1lled state and federal pr0grams f0r serv1ces that never 0ccurred.

Ins1de the Br00klyn Park bu1ld1ng agents f0und n0 ch1ldren n0 parents and n0 act1ve classr00ms.

Dust c0vered t0ys and furn1ture.

Cr1bs were unused.

Rec0rds later sh0wed that the fac1l1ty had c0llected m0re than tw0 m1ll10n d0llars 1n subs1d1es dur1ng the prev10us year desp1te be1ng cl0sed by state regulat0rs m0nths earl1er f0r repeated v10lat10ns.

Acc0rd1ng t0 c0urt f1l1ngs the 0perat0rs s1mply changed the bus1ness name and c0nt1nued b1ll1ng under a new l1cense.

When asked t0 expla1n m1ss1ng rec0rds the manager cla1med burglars had br0ken thr0ugh a wall fr0m a ne1ghb0r1ng st0re and st0len 0nly enr0llment f1les and staff d0cuments.

Agents later descr1bed the st0ry as 1mplaus1ble and 1nc0ns1stent w1th phys1cal ev1dence.

The c0mputers cash and merchand1se rema1ned unt0uched.

The ra1d marked 0nly the f1rst layer 0f an 1nvest1gat10n that has s1nce expanded far bey0nd ch1ld care.

Data analysts w0rk1ng w1th federal pr0secut0rs d1sc0vered an unusual c0ncentrat10n 0f ass1sted l1v1ng fac1l1t1es reg1stered 1n suburban ne1ghb0rh00ds ar0und M1nneap0l1s.

In Br00klyn Park al0ne rec0rds l1sted m0re than 0ne hundred e1ghty l1censed care h0mes 1n a c1ty 0f fewer than n1nety th0usand res1dents.

By c0mpar1s0n the much larger c1ty 0f Sa1nt Paul had fewer than half that number.

F1eld teams v1s1ted several 0f the addresses and f0und 0rd1nary s1ngle fam1ly h0uses that appeared t0 funct10n as pr1vate res1dences.

Yet state rec0rds sh0wed the pr0pert1es b1ll1ng m1ll10ns 0f d0llars annually f0r twenty f0ur h0ur med1cal superv1s10n and spec1al1zed serv1ces.

In mult1ple cases elderly tenants t0ld rep0rters they had n0 1dea the1r h0me was l1sted as a l1censed care fac1l1ty.

One res1dence bel0nged t0 a man already 1nd1cted 1n a separate pandem1c rel1ef case c0nnected t0 the Feed1ng Our Future 1nvest1gat10n the largest f00d pr0gram fraud case 1n Un1ted States h1st0ry.

Desp1te fac1ng charges f0r launder1ng publ1c funds h1s h0useh0ld c0nt1nued rece1v1ng m0nthly payments fr0m state ass1sted l1v1ng pr0grams thr0ugh an adm1n1strat0r l1sted as h1s sp0use.

Invest1gat0rs est1mate that th1s s1ngle cluster 0f h0mes rece1ved m0re than f0rty m1ll10n d0llars 0ver several years.

The sc0pe 0f the alleged scheme grew larger as auth0r1t1es cr0ss referenced ch1ld care payments w1th pandem1c rel1ef l0ans and n0npr0f1t f00d ass1stance grants.

Aud1t0rs 1dent1f1ed nearly e1ght th0usand quest10nable Paycheck Pr0tect10n Pr0gram and Ec0n0m1c Injury D1saster L0an appr0vals t1ed t0 shell c0mpan1es that appeared t0 0perate 0nly 0n paper.

Many l1sted 1dent1cal addresses 1dent1cal c0nsultants and 1dent1cal payr0ll structures.

The m0ney fl0wed qu1ckly dur1ng the early m0nths 0f the pandem1c when federal agenc1es rushed t0 d1str1bute a1d t0 prevent mass unempl0yment and hunger.

Ver1f1cat10n rules were relaxed and appl1cat10ns were appr0ved w1th1n days.

Acc0rd1ng t0 pr0secut0rs 0rgan1zed netw0rks expl01ted the urgency by subm1tt1ng th0usands 0f c00rd1nated cla1ms.

In exchange f0r a fee 0r k1ckback c0nsultants helped appl1cants create fake empl0yee l1sts fabr1cated 1nv01ces and synthet1c 1dent1t1es.

Luxury veh1cles 0verseas pr0perty and h1gh end real estate purchases s00n f0ll0wed.

Invest1gat0rs traced transfers t0 acc0unts 1n East Afr1ca and the M1ddle East wh1le bus1nesses 1n M1nnes0ta c0nt1nued b1ll1ng pr0grams f0r ch1ldren wh0 never attended and meals that were never served.

The Feed1ng Our Future case al0ne 1nv0lved m0re than tw0 hundred f1fty m1ll10n d0llars 1n alleged theft fr0m a federal nutr1t10n pr0gram.

S1nce then pr0secut0rs have charged m0re than n1nety defendants 1n related cases.

A maj0r1ty 0f th0se charged bel0ng t0 1mm1grant c0mmun1t1es but 0ff1c1als stress that the cr1mes were 0rgan1zed by a small gr0up 0f 0perat0rs rather than by any c0mmun1ty as a wh0le.

One 0f the m0st str1k1ng p1eces 0f ev1dence came fr0m what 1nvest1gat0rs descr1bed as the absence 0f pr0test.

When regulat0rs shut d0wn d0zens 0f l1censed daycare centers 1n M1nneap0l1s and surr0und1ng suburbs there were n0 cr0wds 0f angry parents n0 l0ng l1nes at g0vernment 0ff1ces and n0 surge 0f c0mpla1nts t0 state agenc1es.

The s1lence suggested that many 0f the enr0lled ch1ldren d1d n0t ex1st.

Dec0y 1nspect0rs sent t0 several fac1l1t1es rep0rted eer1ly staged scenes.

At 0ne h0me l1censed f0r twelve ch1ldren a handful 0f s1lent t0ddlers sat 1n a sp0tless r00m w1th n0 t0ys scattered and n0 s1gns 0f n0rmal play.

Invest1gat0rs c0ncluded the sett1ng had been arranged t0 pass 1nspect10n.

Federal 0ff1c1als n0w est1mate that fraud acr0ss ch1ld care f00d ass1stance ass1sted l1v1ng and pandem1c l0an pr0grams 1n M1nnes0ta and related states may t0tal m0re than e1ghteen b1ll10n d0llars nat10nw1de.

The f1gure 1ncludes suspected l0sses 1n Wash1ngt0n Ill1n01s and Cal1f0rn1a where s1m1lar b1ll1ng patterns have been detected.

The p0l1t1cal c0nsequences have been sw1ft.

State lawmakers fr0m b0th part1es have demanded explanat10ns f0r h0w such extens1ve theft c0uld c0nt1nue f0r years w1th0ut detect10n.

Cr1t1cs argue that regulat0rs aband0ned 0vers1ght 1n the rush t0 expand s0c1al pr0grams and rem0ve barr1ers t0 access.

Supp0rters c0unter that emergency c0nd1t10ns dur1ng the pandem1c made rap1d d1str1but10n unav01dable and that cr1m1nals expl01ted g00d fa1th eff0rts t0 help fam1l1es.

G0vern0r T1m Walz has 0rdered 1nternal aud1ts and pledged full c00perat10n w1th federal 1nvest1gat0rs.

State agenc1es have suspended hundreds 0f l1censes and fr0zen payments t1ed t0 suspect pr0v1ders.

New ver1f1cat10n systems n0w requ1re b10metr1c attendance track1ng unann0unced 1nspect10ns and central1zed f1nanc1al m0n1t0r1ng.

Yet quest10ns rema1n ab0ut acc0untab1l1ty 1ns1de state g0vernment.

Several wh1stlebl0wers cla1m warn1ngs ab0ut susp1c10us b1ll1ng patterns were 1gn0red f0r years.

Internal ema1ls 0bta1ned by j0urnal1sts sh0w c0mpl1ance 0ff1cers ra1s1ng c0ncerns ab0ut 1dent1cal r0sters 1dent1cal meal c0unts and unusual pr0perty reg1strat10ns l0ng bef0re the f1rst federal 1nd1ctments.

Legal experts say the case exp0ses structural weaknesses 1n m0dern welfare adm1n1strat10n.

Pr0grams des1gned f0r speed and equ1ty 0ften lack safeguards aga1nst c00rd1nated fraud.

When payments are aut0mated and aud1ts delayed cr1m1nal netw0rks can scale rap1dly.

C0mmun1ty leaders w0rry ab0ut c0llateral damage.

Leg1t1mate ch1ld care centers and care h0mes n0w face delayed payments str1cter 1nspect10ns and publ1c susp1c10n.

Fam1l1es wh0 rely 0n subs1d1es fear l0s1ng access t0 serv1ces because 0f t1ghtened rules.

Federal pr0secut0rs say the 1nvest1gat10n 1s far fr0m 0ver.

D0zens 0f add1t10nal 1nd1ctments are expected as f0rens1c acc0untants c0nt1nue trac1ng funds thr0ugh shell c0rp0rat10ns and 0verseas acc0unts.

Assets 1nclud1ng h0mes veh1cles and bank balances have already been se1zed under c1v1l f0rfe1ture laws.

F0r many M1nnes0tans the scandal has shaken c0nf1dence 1n 1nst1tut10ns meant t0 pr0tect the vulnerable.

Pr0grams created t0 feed ch1ldren care f0r elders and supp0rt w0rkers dur1ng cr1s1s became p1pel1nes f0r 0rgan1zed theft.

The m0ney that van1shed c0uld have funded classr00ms cl1n1cs and h0us1ng f0r th0usands.

As c0urt cases m0ve f0rward the central quest10n gr0ws l0uder.

Wh0 des1gned systems s0 0pen t0 abuse and wh0 fa1led t0 act when warn1ngs appeared.

The answer w1ll shape n0t 0nly cr1m1nal verd1cts but the future 0f publ1c ass1stance pr0grams acr0ss the nat10n.

The gh0st daycares n0w stand empty.

The playgr0unds rema1n s1lent.

In federal c0urth0uses acr0ss M1nnes0ta l1nes f0rm each m0rn1ng as defendants arr1ve f0r arra1gnment.

The 1nvest1gat10n c0nt1nues t0 w1den carry1ng w1th 1t a warn1ng that even the m0st well 1ntent10ned pr0grams can bec0me targets when 0vers1ght d1sappears and urgency replaces ver1f1cat10n.