Minnesota 'tried to cover up fraud allegations,' former state trooper alleges

A erstwhile researcher for Minnesota's Department of Human Services alleged that the state's authorities illegally tried to unopen down his probe into childcare fraud successful 2017.

Jay Swanson, a erstwhile researcher successful the Office of Inspector General for Minnesota's Department of Human Services, described successful item a 2018 incidental successful which a elder authoritative allegedly instructed him to delete paragraphs from a study connected fraud successful the state's Child Care Assistance Program (CCAP).

"In August of 2018, arsenic I was preparing answers to questions posed to maine by the OLA [Office of the Legislative Auditor] successful an email, I was told by a DHS [Department of Human Services] authoritative to taxable my answers to them alternatively of sending them straight to the OLA," Swanson, who antecedently served arsenic a Minnesota State Trooper, said Tuesday during a Minnesota House Fraud Prevention Committee hearing.

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FBI and instrumentality enforcement agents raided Mini Childcare, formerly Mako Childcare, successful southbound Minneapolis connected Tuesday, April 28, 2026. Mini Childcare was 1 of 22 sites targeted Tuesday greeting arsenic portion of a fraud probe successful Minnesota. (Anthony Souffle/The Minnesota Star Tribune via Getty Images)

"When I forwarded my reply regarding what fraud trends we're seeing astatine CCAP, arsenic I had been directed, I soon had a elder DHS [Department of Human Services] authoritative successful my office, angry, red-faced and astir yelling. The elder DHS [Department of Human Services] authoritative told maine to delete a fig of paragraphs of the papers that I had sent," Swanson testified.

"I past advised the authoritative that I believed what they were telling maine to bash was illegal. I advised them that Minnesota instrumentality requires authorities employees to cooperate with the OLA and to crook implicit accusation arsenic requested. A fewer days later, the aforesaid authoritative told maine 'I conscionable came from the commissioner's office, and they're sending your papers to the OLA. You amended beryllium acceptable for the blank tempest that's coming your way,'" Swanson said.

Swanson described an alleged run of harassment by authorities Department of Human Services officials against him and his staff. He testified that a advisor was paid $90,000 to statement his assessments of fraud arsenic made up.

Swanson's grounds Tuesday was heard the aforesaid time the FBI raided much than 20 Minneapolis childcare facilities arsenic portion of a sweeping national fraud investigation.

Included successful the raid was the Quality Learning Center, a daycare made infamous by video blogger Nick Shirley's December video showing the motion retired beforehand misspelled arsenic "Quality Learing Center" and the installation empty.

According to Swanson's testimony, that concern shared an code with Salama Childcare Center, the proprietor of which was indicted for theft and fraud successful 2017. Swanson said helium led that probe resulting successful that indictment.

Swanson testified that helium and his squad "had a beforehand enactment spot to ticker the fraud happening, and we had regular interaction with those committing the fraud."

"Beginning successful 2017, we became dismayed and shocked by the effect of immoderate elder DHS [Department of Human Services] officials to whom we reported the fraud to. As I look backmost with the payment of 20/20 hindsight, I recognize that what our squad saw was the aboriginal stages of a somewhat loosely organized transgression endeavor opening to pillage Minnesota's nationalist benefits system," helium told the committee hearing.

Swanson alleged that "a fewer of the elder level DHS [Department of Human Services] officials who harassed and abused our portion for committing the misdeed of trying to exposure a immense magnitude of fraud successful the CCAP programme are inactive moving successful DHS [Department of Human Services] today."

When pressed by authorities Rep. Kristin Robbins, the committee chair, to supply the names, Swanson declined, citing an ongoing investigation. He did, however, accidental that helium had provided the names to the OLA.

Minnesota House Republican members Kristin Robbins, Walter Hudson and Marion Rarick are sworn successful to attest astatine a U.S. House Oversight and Government Reform Committee proceeding astir alleged fraud and misuse of national funds successful Minnesota, connected Capitol Hill successful Washington, D.C., Jan. 7, 2026. (REUTERS/Jonathan Ernst)

Fox News Digital contacted the OLA for further information.

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Further revelations from Swanson included the disclosure that Minnesota was allegedly known acold and wide to would-be scammers arsenic a hotspot ripe for exploitation.

"More than erstwhile I heard an proprietor oregon worker respond erstwhile we asked for the archetypal learned astir the daycare scam, helium would accidental they had archetypal heard astir it portion successful the exile campy successful Kenya," Swanson testified.

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"These individuals told america that they heard that you could tally a scam successful a fig of antithetic states. But it was easiest, and you could marque the astir money, doing it successful Minnesota," Swanson added.

"I was shown a substance speech betwixt the proprietor of the halfway and a friend," Swanson testified. "The person had asked the proprietor 'how overmuch longer are you going to bash the daycare scam?' The proprietor replied, 'another twelvemonth oregon two, I privation to bargain immoderate bully homes successful Nairobi. The proprietor was connected nationalist assistance astatine this time. They happened to beryllium connected abrogation successful Dubai erstwhile this substance speech took place."

The Minnesota Department of Human Services is investigating imaginable denaturalization of U.S. citizens of Somali descent progressive successful a daycare fraud strategy successful Minnesota. (Kevin Carter/Getty Images)

Childcare fraud has been a pervasive contented successful Minnesota dating backmost to 2009, Swanson testified. 

In caller months, the national authorities has homed successful connected the issue. In a March enforcement order, President Donald Trump called the fraud cases an "epidemic" and vowed to instrumentality action.

Trump's enforcement bid besides claimed that Minnesota's Democratic enactment has offered "non-existent oversight" connected the issue, a assertion the state's Democratic Gov. Tim Walz has denied.

Despite initially suing the Trump medication for freezing national backing for Minnesota, Walz publically celebrated Tuesday's FBI raids.

"Today’s raids by authorities and national instrumentality enforcement happened due to the fact that our authorities agencies caught irregular behaviour and reported it. That’s however the strategy is expected to work, and our agencies volition support astatine it arsenic agelong arsenic determination are fraudsters astir to enactment down bars," Walz said successful a Tuesday station connected X.

Minnesota Gov. Tim Walz announced helium volition not question reelection during a property league astatine the State Capitol successful St. Paul connected Jan. 5, 2026. Walz said helium concluded helium cannot afloat perpetrate to a governmental run and did not instrumentality questions from reporters. His announcement comes amid a large societal services fraud ungraded successful the state. (Jerry Holt/The Minnesota Star Tribune/Getty Images)

Members of the Trump medication questioned Walz's claims of cooperation.

"Come again? This FBI and DOJ with our DHS [U.S. Department of Homeland Security] partners drafted and executed each hunt warrant today. But spell up and instrumentality recognition for our enactment portion we fume retired the fraud plaguing Minnesota nether your governorship," FBI Director Kash Patel wrote successful a Tuesday station connected X.

Minnesotan leaders besides formed uncertainty connected Walz's tough-on-fraud claims.

"After the OLA reports came out, the caller Walz medication took a look astatine that. And alternatively than accelerating the transgression investigations, they closed the transgression probe unit. That allowed the fraud to continue," Robbins told Fox News Digital.

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"And determination was nary transgression deterrent anymore. The radical got sanctioned for overpayment. And past they conscionable kept billing the state. So the Walz medication enabled the fraud to flourish by stopping the transgression investigations," Robbins concluded.

Fox News Digital contacted Walz, the U.S. Department of Homeland Security, the U.S. Department of Justice and Vice President JD Vance's anti-fraud task unit for added comment.