Allegations of large-scale fraud tied to child care assistance and non-emergency medical transportation programs in Minnesota were detailed during an exchange between investigator David, a collaborator of Nick Shirley, and Scott Bessent, with both men pointing to what they described as organized criminal activity and failures by state authorities.

David said he has spent seven years researching fraud connected to Minnesota programs, with a particular focus on what he described as Somali-linked operations.

He said his work builds on earlier reporting and investigation, with additional material set to be released.

“So I've been researching this issue of fraud, and more specifically, Somali fraud, because it is so gargantuan. For the past seven years, many of you are familiar with the video that Nick Shirley and I made. We have a second video that's coming out Monday that is 10 times worse than the original video. It's going to be pretty shocking, and it's pretty graphic,” David said.

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David said his findings center on child care assistance payments distributed over the past five years.

“So what I have here is a five year recap of all of the c cap money that's child care assistance payments for the last five years, the top 102 recipients of that 84 of them are Somali owned,” he said.

He claimed that despite those payments, the facilities appear not to be operating.

“You know how many children I've seen at those child care centers over the last seven years? Zero, not one,” David said.

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David also pointed to another funding stream known as “Great Start,” which he said is intended for staff training.

“Well, if you don't have any kids, you don't need any staff,” he said.

He identified non-emergency medical transportation, or NEMT, as the core issue.

“So a search show that Minnesota recognizes 1020 ne MT companies, almost 900 of them are Somali owned,” David said.

He described visiting dozens of listed companies and said many did not exist as legitimate operations.

“In the second video, Nick Sherman, I went to 16 of them. I've actually been to about 70 of them. They don't exist. They're in an apartment building. One of them is a liquor store. Another one's a wire transfer. Another one is something totally it's a grocery store,” David said.

He said those companies lacked vehicles and infrastructure.

“There are no vehicles. And the average any MT company in the United States has 20 vehicles, and each vehicle generates about $70,000 a year,” he said.

David said the responsibility ultimately lies with the Minnesota Department of Human Services.

“So my feeling is that chasing the money transfers and the wires and the SARS is great, but you got to drop like Batman on Minnesota DHS, because they're the ones who are writing the checks. They're the ones allowing the fraud to happen,” he said.

He criticized inspection practices and said facilities are warned in advance.

“So when DHS goes out and does these inspections, they always do them an ounce so they call ahead to let them know they're coming,” David said.

David said he is calling for federal intervention.

“So I'm asking for the Fed's help to come in and get to DHS and tell them, get their act together. Thank you,” he said.

Scott Bessent responded by thanking David for his work.

“David, I want to thank you they have for both your citizen journalism, but more for your citizen investigation in terms of what the Minnesota government was unwilling to do,” Bessent said.

He asked whether the failures were accidental or intentional.

“And here, would you care to speculate whether it was negligence or corruption, or some toxic cocktail both?” Bessent asked.

David pointed to comments by Minnesota Gov. Tim Walz.

“So Governor Walz is on record as saying that organized crime caused the fraud in Minnesota,” David said.

David cited a Minnesota statute requiring agency heads to notify the Legislative Auditor upon learning of fraud and disputed Walz’s handling of the matter.

“Look, I just want to say everything I've done on my own, I don't make a penny off this. I just I was born here. I grew up here. My whole family's here, and I'm not going to sit by while this happens, and not do anything,” David said.

Bessent agreed that the activity constituted organized crime.

“Well, I find myself in the unusual position of agreeing with Governor waltz that it was undoubtedly organized crime,” Bessent said.

He added that Treasury has experience prosecuting such cases.

“This is an organized criminal enterprise, and we will get to the bottom of it. And thank you for your help,” Bessent said.

David concluded by saying Minnesota is the center of the alleged fraud.

“But this is their this is their ground zero right here. This is their base, Minneapolis,” he said.

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