The Smerconish Podcast Minnesota Fraud: Shocking Exception—or Proof the System Is Broken?
Jan 5, 2026
A viral video claims widespread daycare fraud in Minnesota, raising questions about systemic issues. The discussion highlights that quick COVID relief spending may have prioritized speed over security, leading to potential fraud in the hundreds of billions. Michael critiques Congress for inadequate oversight and notes that fraudsters have misused relief funds on luxury items and crypto. He believes that Minnesota's situation is likely indicative of a larger pattern and urges listeners to consider the implications of government oversight and pandemic responses.
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Minnesota Is Likely The Tip Of An Iceberg
- Michael Smirconish argues the Minnesota daycare fraud is likely the tip of a much larger, nationwide problem rooted in pandemic-era relief programs.
- He links rapid disbursement with weak safeguards, making widespread fraud predictable and systemic.
Viral Video Sparked Intense Scrutiny
- Smirconish recounts watching Nick Shirley's 42-minute viral video that claims widespread Minnesota daycare fraud and says it reached over 133 million views.
- He questions some of the video's methods, like missing dates and operating-hour context, while still believing substantial fraud exists.
Speed Over Security Created The Risk
- Smirconish explains pandemic relief prioritized speed over verification, producing large fraud vulnerabilities across programs like PPP and EIDL.
- He highlights that self-certification and rapid rollout invited exploitation at scale.