MINNEAPOLIS, Minn. — A former FBI agent is casting doubt on Minnesota’s latest effort to combat Medicaid-related fraud, arguing that newly announced verification measures are unlikely to address the scope of alleged abuses tied to the state’s childcare system.
The Minnesota Department of Human Services recently said it would add another layer of verification to Medicaid payments in response to mounting scrutiny over claims that millions in taxpayer funds were paid to daycare centers that appeared to be operating with little or no attendance. The move follows heightened federal attention and public concern after videos circulated showing allegedly empty, publicly funded facilities.
Independent reporter Nick Shirley drew national attention after posting footage of a visit to the Quality Learning Center in Minneapolis during regular weekday hours, where he reported seeing no children present. The video fueled broader allegations of systemic fraud involving childcare reimbursements tied to Medicaid and related programs.
Former FBI Special Agent Jonathan Gilliam told Fox News Digital that the additional verification layer announced by the state is unlikely to have a meaningful impact. Gilliam said fraud schemes of this scale typically require comprehensive oversight reforms, not incremental administrative changes, adding that a single new safeguard may address isolated issues without disrupting broader fraudulent activity.
Amid the controversy, the U.S. Department of Health and Human Services announced it would freeze childcare-related payments to Minnesota while investigations continue. Deputy HHS Secretary Jim O’Neill said the agency has launched a dedicated fraud-reporting hotline and encouraged parents, providers, and the public to submit information as federal scrutiny intensifies.
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