Agents armed with search warrants keep focus on Minnesota in fraud probe

MINNEAPOLIS (AP) — Federal agents executed multiple searches in Minnesota on Tuesday, seizing records and other evidence in an ongoing fraud investigation by the Trump administration of publicly funded social programs for children, authorities said.

Few details were released, though armed agents were seen at childcare centers in the Minneapolis area. KSTP-TV said one crew even had a battering ram.

Democratic Gov. Tim Walz, who has been on the defensive amid Trump administration claims that he hasn’t done enough to root out fraud, welcomed the raids. The state child welfare agency said it shared key information with law enforcement to “hold bad actors accountable.”

“We catch criminals when state and federal agencies share information. Joint investigations work, and securing justice depends on it,” Walz said.

The searches were being conducted at daycares, businesses and some residences, according to a person familiar with the matter who spoke to The Associated Press on the condition of anonymity because they were not authorized to publicly discuss the investigation.

Tensions between Minnesota officials and the federal government were high during an extraordinary immigration crackdown that led to the deaths of two people before Operation Metro Surge was eased in February.

Before that crackdown, the government had brought fraud charges against dozens of people, many of them Somali Americans, who were accused of fleecing a federal program that was meant to provide food to children. The investigation began during the Biden administration. More than 60 people have been convicted.

Various state and federal agencies, including the Department of Homeland Security, participated in searches Tuesday. Officers from Minnesota’s Bureau of Criminal Apprehension were removing boxes at some sites.

“The American people deserve to know how their taxpayer money was abused. … No stone will be left unturned,” DHS said.

Jason Steck, an attorney who represents childcare centers, said the names of targeted businesses that were shared with him show they’re operated by Somali immigrants. They were not his clients.

“A few childcare centers, a few autism centers, a few healthcare agencies of some type,” Steck said, adding that it appeared to be a “particular sweep for fraud.”

The executive director of Child Care Aware of Minnesota, a nonprofit that serves childhood educators, said the publicity will be unflattering.

“The majority are in business to do good business. You’re going to come across individuals who try to capitalize on systems that are broken and need to be fixed,” Candace Yates said.