1ns1st because 0f alleged fraud 1n M1nnes0ta, they’re feel1ng the backlash 0n s0c1al med1a, see1ng less bus1ness 1n the1r st0res.9:12 a.m.

Br00klyn Park, M1nnes0ta.

The m0rn1ng traff1c was m0v1ng sl0wly al0ng the suburban c0mmerc1al str1p.

T0 the casual 0bserver, the s1nglest0ry br1ck bu1ld1ng 0n the c0rner l00ked l1ke a standard ch1ld care fac1l1ty.

C0l0rful cut0uts 0f the alphabet were taped t0 the w1nd0ws.

A playgr0und 1n the back st00d s1lent, wa1t1ng f0r ch1ldren.

The s1gn ab0ve the d00r read, “Creat1ve M1nds Daycare.

” But m0ments later, the s1lence was shattered.

A c0nv0y 0f unmarked federal SUVs swarmed the park1ng l0t.

Agents fr0m the FBI, ICE, and the Department 0f Health and Human Serv1ces, HHS, m0ved w1th synchr0n1zed prec1s10n.

They weren’t there f0r a c0mpl1ance check.

They were execut1ng a federal search warrant 0n what 1ntell1gence analysts had 1dent1f1ed as a gh0st hub.

Th1s wasn’t an 1s0lated ra1d.

At that exact m0ment, acr0ss the Tw1n C1t1es metr0 area, tact1cal teams were h1tt1ng 23 separate l0cat10ns s1multane0usly.

The target was a sprawl1ng netw0rk 0f S0mal1 0wned daycare centers suspected 0f defraud1ng the Amer1can taxpayer 0n an 1ndustr1al scale.

When agents breached the fr0nt d00r 0f creat1ve m1nds, they expected t0 f1nd the cha0s 0f a busy daycare d0zens 0f t0ddlers.

The escalat10n f0ll0ws a n0w v1ral v1de0 that sh0ws what appear t0 be empty daycare centers m0stly run by the S0mal1 c0mmun1ty sh0ut1ng teachers.

the n01se 0f a fac1l1ty l1censed t0 care f0r 99 ch1ldren.

Instead, they f0und s1lence.

The ma1n r00m was empty.

The t0ys 0n the shelves were c0vered 1n a th1n layer 0f dust, und1sturbed f0r m0nths.

The cr1bs 1n the nursery were pr1st1ne.

There were n0 ch1ldren.

There were n0 parents dr0pp1ng them 0ff.

There was 0nly a skelet0n crew 0f empl0yees wh0 l00ked stunned t0 see federal badges 1nstead 0f the1r usual empty r00m.

The 1nvest1gat10n revealed that th1s fac1l1ty al0ne had rece1ved $2.45 m1ll10n 1n g0vernment subs1d1es 0ver the last year.

But the audac1ty 0f the fraud d1dn’t st0p at empty r00ms.

Agents d1sc0vered that Creat1ve M1nds had techn1cally been shut d0wn by the state m0nths earl1er due t0 1rregular1t1es.

But the 0perat0rs hadn’t st0pped b1ll1ng.

They s1mply slapped a new v1nyl banner 0ver the 0ld s1gn.

But they have g0tten repeated v10lat10n 10 1n June that 1ncluded the staff that they had n0t c0mpleted tra1n1ng requ1rements, that ch1ldren weren’t put 1n there.

The new name was Super K1ds.

Under th1s new al1as, the m0ney kept fl0w1ng.

The state kept pay1ng and the gh0st ch1ldren names pulled fr0m st0len data l1sts kept attend1ng every s1ngle day 0n paper.

As agents secured the fac1l1ty, the manager attempted t0 expla1n the lack 0f rec0rds.

He t0ld a st0ry that left 1nvest1gat0rs stunned by 1ts b0ldness.

He cla1med that just yesterday, 0ne day after the HHS secretary had f0rmally requested the attendance l0gs, a team 0f burglars had br0ken 1nt0 the bu1ld1ng.

But these weren’t 0rd1nary th1eves.

Acc0rd1ng t0 the manager, they d1dn’t steal the c0mputers.

They d1dn’t take the cash 0r the electr0n1cs.

He p01nted t0 a h0le smashed thr0ugh the sheetr0ck wall c0nnect1ng the daycare t0 the fam1ly d0llar st0re next d00r.

He cla1med the th1eves had br0ken 1n fr0m the back k1tchen, destr0yed the wall, and st0len exactly 0ne th1ng, the paperw0rk.

They supp0sedly 1gn0red the safe and the merchand1se next d00r t0 steal the enr0llment f0rms and empl0yee d0cumentat10n that w0uld have pr0ven the fraud.

wh0’s n0w g0t 0ver 80 m1ll10n v1ews 0n th1s th1ng, f0und m0re 1n a matter 0f h0urs than T1m Walls and Ke1th Ell1s0n, 0ur att0rney general, had f0und 1n seven years.

It was a c0ver st0ry s0 th1n 1t 1nsulted the 1ntell1gence 0f the agents stand1ng 1n the r00m.

But 1t revealed the m1ndset 0f the netw0rk.

They bel1eved they were unt0uchable.

They bel1eved that n0 matter h0w 0bv10us the l1e, the checks w0uld keep clear1ng.

If y0u bel1eve that steal1ng m1ll10ns fr0m pr0grams meant f0r hungry ch1ldren 1s a cr1me that deserves a mandat0ry pr1s0n sentence, h1t the l1ke butt0n and c0mment just1ce bel0w.

The ra1ds 0n the gh0st daycarees were just the f1rst layer 0f the 0n10n.

As federal data analysts began cr0ss-referenc1ng the se1zed f1les w1th state pr0perty rec0rds, a sec0nd, even larger scam began t0 emerge.

It wasn’t just c0mmerc1al bu1ld1ngs.

The fraud had m0ved 1nt0 the ne1ghb0rh00ds.

Analysts flagged a d1sturb1ng pattern 1n res1dent1al z0n1ng data.

In the c1ty 0f Br00klyn Park, wh1ch has a p0pulat10n 0f 84,000 pe0ple, there were 181 reg1stered ass1sted l1v1ng fac1l1t1es.

C0mpare that t0 Street Paul, a c1ty 0f nearly 310,000 pe0ple, wh1ch had 0nly 83.

Why d1d a small suburb have m0re than d0uble the number 0f care fac1l1t1es than a maj0r c1ty? The answer wasn’t a sudden surplus 0f s1ck pe0ple.

It was a surplus 0f scammers.

It 1s the t1p 0f an 1ceberg essent1ally s0meth1ng that they are l00k1ng 1nt0 there as well as uh the small bus1ness ass0c1at10n.

Kelly Laughafaughler the head 0f the bus1ness ass0c1at10n there.

Federal teams m0ved t0 1nvest1gate these res1dent1al h0mes.

They pulled up t0 standard s1ngle fam1ly h0uses that were b1ll1ng the state m1ll10ns 0f d0llars annually f0r 24-h0ur spec1al1zed care.

At 0ne res1dence, agents d1sc0vered the 0wner was a man named Gandh1 Muhammad, als0 kn0wn as Gandh1 Abd1 Kada1.

H1s name was already fam0us 1n federal law enf0rcement c1rcles.

He had been 1nd1cted f0r launder1ng $1 m1ll10n 1n the 1nfam0us feed1ng 0ur future scandal, the largest pandem1c fraud 1n US h1st0ry.

Yet, desp1te be1ng under federal 1nd1ctment, desp1te awa1t1ng tr1al f0r steal1ng tax m0ney, the state 0f M1nnes0ta was st1ll pay1ng h1m.

H1s w1fe was l1sted as the adm1n1strat0r 0f the ass1sted l1v1ng fac1l1ty.

The state checks were st1ll arr1v1ng every m0nth, dep0s1t1ng taxpayer funds 1nt0 the acc0unts 0f a fam1ly already charged w1th mass1ve fraud.

Th1s netw0rk 0f res1dent1al scams had rece1ved $2.3 m1ll10n 1n state m0ney 1n the last year al0ne.

S1nce 2016, th1s s1ngle gr0up had extracted a stagger1ng $49 m1ll10n when 1ndependent j0urnal1sts and 1nvest1gat0rs kn0cked 0n the d00rs 0f these fac1l1t1es.

They were met w1th c0nfus10n.

The res1dents, 0ften elderly 1mm1grants wh0 sp0ke l1ttle Engl1sh, had n0 1dea the1r h0me was a reg1stered med1cal fac1l1ty b1ll1ng the g0vernment f0r 1ntens1ve serv1ces.

They were pr0ps 1n a play des1gned t0 l00t the treasury t0 a fraud scheme that t0taled $250 m1ll10n f0r fund1ng that was f0r a n0npr0f1t that was supp0sed t0 help hungry ch1ldren.

The 1nvest1gat10n revealed that th1s wasn’t just ab0ut a few bad act0rs.

It was ab0ut a system des1gned t0 be r0bbed.

The barr1ers t0 entry were n0n-ex1stent.

The aud1t1ng was a j0ke.

In t0tal, federal aud1t0rs 1dent1f1ed 7,900 fraudulent l0ans appr0ved f0r these netw0rks w0rth appr0x1mately $400 m1ll10n.

These were paycheck pr0tect10n pr0gram, PPP l0ans, and ec0n0m1c 1njury d1saster l0ans, EIDL, g1ven t0 bus1nesses that ex1sted 0nly 0n paper.

The m0ney was meant t0 save Amer1can j0bs dur1ng the pandem1c.

Instead, 1t b0ught luxury cars, real estate 1n Kenya, and funded a cr1m1nal emp1re that was gr0w1ng exp0nent1ally.

The sheer dens1ty 0f the fraud 1n spec1f1c z1p c0des p01nted t0 c00rd1nated m1lls, shad0w c0nsultants wh0 f1lled 0ut th0usands 0f appl1cat10ns f0r any0ne w1ll1ng t0 pay a k1ckback.

They d1dn’t just steal the m0ney, they 1ndustr1al1zed the theft.

We are track1ng the federal 1nd1ctments f0r every bus1ness 0wner 1nv0lved 1n th1s r1ng.

H1t the subscr1be butt0n s0 y0u d0n’t m1ss the l1st 0f names.

As the scale 0f the 0perat10n became clear, the 1nvest1gat10n expanded bey0nd M1nnes0ta.

Th1s wasn’t a l0cal c0rrupt10n scandal.

It was a nat10nal cr1s1s.

The Wh1te H0use br1efed 0n the ra1ds released a stagger1ng est1mate.

The t0tal value 0f the fraud acr0ss these 1nterl1n netw0rks spann1ng daycarees, f00d pr0grams, and ass1sted l1v1ng was est1mated at $18 b1ll10n.

T0 put that number 1n perspect1ve, $18 b1ll10n c0uld bu1ld f1ve new a1rcraft carr1ers.

It c0uld end h0melessness f0r veterans 1n every maj0r US c1ty.

The latest allegat10ns add t0 a gr0w1ng l1st 0f fraud 1nvest1gat10ns 1n M1nnes0ta.

S0 far, 92 pe0ple have been charged, 1nclud1ng 82 S0mal1 Amer1cans.

Instead, 1t had van1shed 1nt0 a labyr1nth 0f shell c0mpan1es and 0verseas transfers.

The c0ntag10n had spread t0 the West C0ast.

In Kent, Wash1ngt0n, federal 1nvest1gat0rs f0cused 0n a fac1l1ty called A1sha H0me Ch1ld Care.

State rec0rds 1nd1cated th1s s1ngle h0me had rad 1n $753,000 s1nce 2022.

The 0ff1c1al capac1ty 0f the h0me was 12 ch1ldren.

But when a dec0y 1nvest1gat0r entered the pr0perty, they f0und a scene that l00ked m0re l1ke a stage set than a daycare.

A small gr0up 0f ch1ldren st00d s1lently 1n a r00m.

N0t a s1ngle t0y was 0ut 0f place.

There was n0 n01se, n0 play1ng, n0 mess.

It was PMPk1n V1llage, a fake facade erected s0lely t0 pass a scheduled 1nspect10n.

The 0wner, Sarah Mullen, had rece1ved nearly $113,000 1n d1rect subs1d1es 1n just tw0 years 0n t0p 0f tens 0f th0usands 1n s0c1al and health benef1ts.

The system was pay1ng them a salary, pay1ng f0r the1r healthcare, and pay1ng f0r the1r h0us1ng, all f0r runn1ng a bus1ness that appeared t0 serve alm0st n0 0ne.

But the m0st damn1ng ev1dence wasn’t what was f0und, 1t was what was m1ss1ng.

State and federal agents had already ra1ded Al1’s daycare center 1n S0uth M1nneap0l1s.

a bus1ness was suspected 0f b1ll1ng the g0vernment.

In a leg1t1mate cr1s1s where th0usands 0f daycarees were be1ng shut d0wn, y0u w0uld expect an upr0ar.

Y0u w0uld expect tens 0f th0usands 0f angry parents fl00d1ng the ph0ne l1nes 0f the g0vern0r’s 0ff1ce.

Y0u w0uld expect pr0tests fr0m m0thers and fathers wh0 suddenly had n0where t0 dr0p 0ff the1r k1ds s0 they c0uld g0 t0 w0rk.

There was s1lence.

There were n0 l1nes 0f parents.

There were n0 angry m0bs 0n s0c1al med1a c0mpla1n1ng ab0ut the cl0sures.

The reas0n was ch1ll1ngly s1mple.

The parents d1dn’t ex1st.

The ch1ldren 0n the r0lls were gh0sts.

The fam1l1es rece1v1ng the a1d were synthet1c 1dent1t1es 0r c0-c0nsp1rat0rs wh0 rece1ved a k1ckback f0r lend1ng the1r names t0 the r0ster.

Th1s s1lence pr0ved the fraud m0re effect1vely than any aud1t.

The ent1re ec0system, the k1ds, the parents, the staff, was a fabr1cat10n.

The p0l1t1cal fall0ut was 1mmed1ate and expl0s1ve.

Cr1t1cs labeled 1t state sp0ns0red theft.

They argued that state g0vernments 1n the1r rush t0 push 0ut welfare m0ney w1th0ut guard ra1ls had effect1vely partnered w1th the cartels.

M1nnes0ta G0vern0r T1m Waltz had fam0usly t0uted h1s state’s gener0s1ty.

M1nnes0ta G0vern0r T1m Waltz has s1nce faced 1ntense scrut1ny 0ver the alleged fraud, push1ng f0r un1versal prek and expanded care.

But 1nvest1gat0rs argued that th1s gener0s1ty was exactly what the fraudsters had expl01ted by rem0v1ng ver1f1cat10n steps 1n the name 0f equ1ty and access.

The state had 0pened the vault d00r and walked away.

The creat1ve m1nds ra1d, the super k1ds s1gn change, the fake burglary.

These weren’t s0ph1st1cated cr1mes.

They were clumsy, arr0gant thefts c0mm1tted by pe0ple wh0 knew n0 0ne was watch1ng.

But n0w the eyes 0f the federal g0vernment are w1de 0pen.

The $18 b1ll10n party 1s 0ver.

The gh0st hubs are empty, and the 0nly l1nes f0rm1ng 1n M1nnes0ta t0day are the 0nes f0r b00k1ng ph0t0s at the federal c0urth0use.

The quest10n n0w 1s n0t just wh0 st0le the m0ney, but wh0 let them keep the keys t0 the vault f0r s0 l0ng.

D0 y0u bel1eve that state 0ff1c1als wh0 all0wed th1s fraud t0 happen thr0ugh negl1gence sh0uld be rem0ved fr0m 0ff1ce? Yes 0r n0? C0mment bel0w.

Stay v1g1lant.