Background: Minnesota Fraud Claims
In late 2025, right‑wing creator Nick Shirley released a viral YouTube video alleging a $100 million fraud scheme involving Somali‑run child‑care centers in Minnesota. The video sparked a media frenzy and was amplified by former President Donald Trump and other pro‑Trump personalities.
Shift to California
Following the Minnesota episode, Shirley announced on Instagram that he was heading to California to “investigate” similar fraud, this time targeting Somali‑run child‑care centers on the West Coast. He is working with private investigator Amy Reichert, who claims to be probing “ghost daycares.”
Key Players and Their Claims
- Nick Shirley – alleges fraud in California child‑care centers using the same “show‑up‑and‑demand‑to‑see‑children” tactic he used in Minnesota.
- Benny Johnson – a Turning Point USA contributor who released a documentary accusing California of a “homeless industrial complex” that misuses federal funds and allegedly rigs national elections.
- Larry Elder – reposted Johnson’s video, calling California’s alleged fraud “worse than Minnesota.”
- Elon Musk – amplified coverage by sharing Fox News stories labeling the alleged fraud “truly insane.”
- Mehmet Oz – CMS administrator who posted a video accusing California health‑care providers of organized crime‑style fraud, prompting a civil‑rights complaint from Governor Newsom’s office.
Political Reactions
Governor Gavin Newsom’s office dismissed the allegations as “conspiracy theory memes” and filed a civil‑rights complaint against Oz for racially charged statements. President Trump, via Truth Social, labeled California “more corrupt” than Minnesota and announced a new Justice Department assistant attorney general, Colin McDonald, to focus on fraud investigations.
Potential Implications
The coordinated push mirrors a strategy outlined in a January WIRED report that suggested California and New York could be the next targets after Minnesota. Senior White House officials have hinted that if fraudsters are undocumented immigrants, they could face deportation, raising concerns about the intersection of welfare policy and immigration enforcement.