The Iced Coffee Hour The Minnesota Fraud Scandal | An Unfiltered Conversation with Nick Shirley
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Jan 3, 2026 
Nick Shirley, an independent investigative content creator, shares his viral findings on suspected daycare fraud in Minnesota. He discusses the lack of local media coverage and how his on-the-ground videos sparked a statewide conversation. Nick reveals shocking details about huge payouts and the operators' claims of entitlement. He stresses the need for surprise inspections and transparency to combat fraud. The conversation delves into the political implications and reactions from authorities, revealing a broader network of deceit that extends to adult daycares.
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Visual Proof Drove Viral Exposure
- Nick Shirley argues his video revealed visible, operable fraud because he showed licensed centers with no children and unapologetic staff.
- He says that visual, verifiable proof made the issue contagious on X and forced national attention.
How A Local Researcher Sparked The Investigation
- Nick met David, a local researcher who had compiled licensing and payment records and DM'd him the data.
- David had driven by centers for years and never saw children, which triggered their joint investigation.
Funds Flowed Through Weak Oversight
- Shirley describes the payment flow: federal and state funds flow through HHS to licensed daycares and related services.
- He argues audits are weak or non-existent, enabling long-term abuse despite acknowledged attempts to fight fraud.