Controversy Erupts Over Minneapolis Day Care Center’s Alleged Fraud

A Minneapolis day care center, the Quality Learning Center, has come under intense scrutiny following a viral video that alleges fraudulent practices. The video, created by conservative content creator Nick Shirley, highlights what he claims are irregularities within the center and others in the Somali community. The controversy escalated after a sign at the Quality Learning Center was found to have a misspelled word, prompting criticism of the facility and its operations.

Shirley’s video, posted on December 25, 2023, quickly gained traction, resulting in heightened immigration enforcement and the freezing of federal funds. In his 42-minute commentary, Shirley criticized the day care as a symbol of a larger issue he perceives with state oversight, stating, “These are not real businesses.” His remarks have drawn attention to the administration of Governor Tim Walz, who faces increasing pressure from lawmakers and the public regarding child care funding and oversight.

Federal law enforcement has been investigating allegations of fraud in Minnesota’s child care system for several years. According to Assistant U.S. Attorney Melinda Williams, “98 individuals have been charged in our ongoing fraud against the government cases.” Despite these investigations, no fraud charges have been filed against Quality Learning Center.

The Quality Learning Center is set to receive approximately $1.9 million from the Child Care Assistance Program (CCAP) in 2025 and has received nearly $10 million from the program since 2019. Questions have arisen regarding the legitimacy of these funds, with the state House Republican Caucus citing concerns about the center’s operations. State House Speaker Lisa Demuth noted that these issues were raised months ago, indicating ongoing scrutiny of day care facilities across the state.

CCAP does not accept applications from day care centers directly; instead, it processes applications from eligible parents who require financial assistance. A budget forecast from November indicates that the program will cost the state approximately $56 million for the 2025 fiscal year, with an anticipated $101 million in federal funding.

Inspection Records and Violations

The Quality Learning Center’s licensing record shows it was last inspected on June 23, 2023, with officials stating that inspections are conducted unannounced. Tikki Brown, the Commissioner of the Department of Children, Youth, and Families, confirmed that ongoing investigations of various centers have not uncovered fraud. Nevertheless, the Quality Learning Center has faced multiple violations, with records indicating it received 121 citations from May 2022 to June 2025. These included issues such as having an unqualified substitute and inadequate documentation for medication.

Despite the numerous violations, there has been no suggestion of fraud in connection with these findings. In fact, the center was placed on conditional status in June 2022 due to the “serious and chronic nature” of its violations, which were said to impact the health and safety of children. The facility’s licensing was renewed and remains active through the end of 2026.

On Monday, Ibrahim Ali, who identified himself as a manager and son of the center’s owners, firmly denied any claims of wrongdoing. He stated that the video was filmed before the center opened for the day, asserting, “There’s no fraud going on whatsoever.” Ali mentioned that the center provides after-school care, with operating hours from 14:00 to 22:00, which may explain the perceived inactivity in the video.

Community Response and Ongoing Investigations

As the controversy unfolds, the Quality Learning Center has become a focal point for discussions on state oversight and fraud in the child care system. Observers noted significant activity outside the center on Tuesday, with children being escorted in and out, contradicting claims of closure. This led to speculation and confusion regarding the center’s operational status.

The state Department of Human Services has not responded to requests for clarification on enrollment figures, complicating attempts to ascertain how many children are currently served by the center. While the facility is licensed to care for up to 99 children, Ali claimed it typically serves between 50 and 80 children daily.

The narrative surrounding the Quality Learning Center continues to evolve, with additional investigations and inspections expected in response to the heightened scrutiny. As state officials and the public grapple with these allegations, the future of the center and similar facilities remains uncertain.

In the meantime, the infamous misspelling on the center’s sign has drawn attention to the broader issues facing day care providers in Minnesota. Ali contended that the error was a simple mistake made by a graphic designer, stating that efforts to correct it are already underway.