In Minneapolis, a Journalist’s Discovery Links Child Care Fraud Directly to the Governor’s Office

The trail of what may be Minnesota’s largest-ever public fraud case didn’t lead to a shadowy corporation. It led, according to phone records, straight to the desk of Governor Tim Walz. Independent journalist Nick Shirley found the publicly listed number for “Sweet Angel Child Care,” a center implicated in massive childcare subsidy fraud, rings in the Governor’s office. This simple, shocking discovery has ignited a political firestorm, suggesting a brazen theft of billions from taxpayers happened under the state’s nose.

For seven years, whistleblowers and legislators have waved red flags about exploding costs in Minnesota’s Child Care Assistance Program. Governor Walz’s administration, however, consistently downplayed the scope of the problem. Nick Shirley, digging through public data and following tips, uncovered in a single day what critics say the state refused to: a network of daycare providers billing for nonexistent children, operating from vacant lots, and funneling money into a complex web of shell companies.

The fraud isn’t just big; it’s audacious. Investigators believe well-organized groups exploited the well-intentioned program, with some providers submitting bills for over 24 hours of care in a single day for a single child. The total loss is estimated in the billions, a staggering sum stolen from a program designed to help low-income working families. “The scale is so vast, it’s impossible the administration didn’t know something was wrong,” Shirley stated in a recent interview.

Now, the journalist who broke the story finds himself at the center of a dangerous new twist. In a shocking development, a Somali-American politician and CEO of a non-profit in Maine, has reportedly placed a bounty on Nick Shirley. This came after Shirley’s reporting expanded to expose similar multi-million dollar fraud in Maine’s Medicaid system, known as MaineCare, allegedly involving the CEO’s organization.

The reported bounty transforms this story from a scandal of corruption to one with real-world peril for the press. It underscores the high financial stakes and dark forces often behind systemic fraud. Shirley, who continues to report, has acknowledged the threats but says the risk is outweighed by the public’s right to know how their money is being stolen.

Back in Minnesota, Governor Walz faces mounting pressure. Republicans are demanding answers on why the “Sweet Angel” number reached his office, calling it a symbol of a deeply negligent administration. Walz’s office has called the fraudulent billing “disgusting” and points to recent prosecutions, but the direct phone line revelation remains a haunting question he has yet to fully answer.

This sprawling story touches on the failure of oversight, the courage of independent journalism, and the terrifying cost of truth-telling. It reveals how vulnerable our social safety nets are to predation and how the hunt for accountability can turn deadly. As investigations in multiple states continue, all eyes are on what other secrets may be uncovered—and who will be held responsible.