Law enforcement descended on multiple businesses across Minneapolis on Tuesday morning in connection with an ongoing fraud investigation.
Federal agents have raided over 20 businesses in Minneapolis that reportedly have Somali connections, including a learning center that came under fire earlier this year after accusations of fraud.
Homeland Security Investigations confirmed that their agents were involved in the raid alongside state and local law enforcement partners across Minneapolis and St Paul.
'Today, the FBI with federal, state and local law enforcement is involved in court-authorized law enforcement activity as part of an ongoing fraud investigation,' a Justice Department spokesperson added in a statement to multiple news outlets.
However, the City of Minneapolis denied in a statement that the Minneapolis Police Department had been asked to assist in executing federal search warrants.
'The City of Minneapolis is not involved in the federal operations being reported around Minnesota today, and as of 9:30 a.m., MPD has not been asked to assist with the execution of federal warrants,' the city said.
'We understand that any federal actions in our neighborhoods may spark fear among residents, and we will continue to marshal City resources to help the community in the aftermath of Operation Metro Surge.'
Sources told Fox News that around 22 businesses were raided, including the Quality Learning Center, which went viral for a misspelled sign amid allegations of fraud among Somali-owned daycares in the area.
The center gained nationwide attention in December when conservative YouTuber Nick Shirley shared a viral video accusing the daycare of receiving public funds without providing a service.
Shirley's video prompted a wave of allegations against other Somali-owned daycares in Minneapolis and caught the attention of federal agents.
The daycare center denied the allegations at the time, but closed in January pending a license review, according to the Minnesota Department of Human Services.
Local CNN affiliate KARE reported that the raids targeted businesses that received Medicaid, primarily child and daycare providers.
Sources told KARE that the raids were not linked to federal immigration enforcement operations.
A CBS News crew also reported federal agents at the Mini Childcare Center, another location featured in Shirley's video. The raid did not lead to any arrests, according to CBS.
The Daily Mail has reached out to the Department of Justice for more information on the raid.
The raid comes months after Operation Metro Surge, a federal immigration crackdown across the Twin Cities that resulted in around 4,000 arrests and two fatal shootings by immigration officers of US citizens.
The Department of Homeland Security later dubbed the operation the 'largest immigration enforcement operation ever.'
The Twin Cities are home to the US's largest Somali community. President Donald Trump said Somalis were 'completely taking over' Minnesota and accused the community of widespread fraud, which prompted the massive, unprecedented immigration enforcement operation.
The state was already under a microscope for fraudulent activity following the Feeding Our Future scandal.
The Minnesota-based nonprofit had received $244 million from federal nutrition programs to feed low-income chidlren and senior citizens between 2018 and 2021.
Feeding Our Future received an influx of federal funds during the Covid-19 pandemic when the US Department of Agriculture waived some regulations for nutrition programs.
Prosecutors found that the nonprofit had been using the funds for personal use, and over 63 individuals connected to Feeding Our Future were convicted on fraudulent charges, many of whom were of Somali descent.
The founder and ringleader of the scheme, however, was a white woman named Aimee Bock.
After Minnesota Governor Tim Walz was named as Kamala Harris' running mate in 2024, Republicans accused him of allowing widespread fraud in the state.
Walz created a new centralized fraud investigation unit last January in response to the allegations; however, the state continued to be a magnet for fraud allegations from the Trump administration.
First Assistant US Attorney Joe Thompson announced in December that federal authorities estimated that fraud in Minnesota Medicaid programs may have cost taxpayers as much as $9 billion since 2018.
Shortly after the announcement, Shirley shared an 'investigation' on widespread fraud allegations against Minnesota-based daycare centers that receive federal funding.
Shirley visited several daycare centers in the area, many of which were owned or operated by members of the Somali community.
He went to the centers unannounced in the middle of the day and alleged that they were receiving federal aid without providing services.
The video was amplified by several high-profile figures, including Elon Musk, Vice President JD Vance, and then-Attorney General Pam Bondi.
Trump froze federal funds to Minnesota in response to the video, but Shirley's allegations remain unconfirmed.
Three daycares featured in the video sued the state of Minnesota in February, claiming they were unfairly punished.
A second Somali fraudster, who stole half a million dollars, was handed a mere six months in jail by a Minneapolis judge, just a day after one of her co-conspirators was sentenced to a year.
Zamzam Jama was ordered to pay back $491,000 and will spend half a year in jail for her role in the Feeding Our Future scandal on Tuesday, Kare 11 reporter Lou Raguse reported.
She was sentenced by Judge Nancy Brasel, who gave her co-conspirator Abdul Abubakar Ali a one-year sentence just the day before.
Jama and Abubaker are just two of the dozens of fraudsters in the case. Jama is the first of six in her family to be sentenced.
The Jama family ran their scheme out of Brava Restaurant and Cafe in Rochester, Minnesota. The Jama family has been accused of stealing $5.6million of taxpayer cash by falsely claiming to be feeding children.
Jama used the money to buy a $480,000 home in Rosemount and a Toyota Rav4 with the stolen money. Those possessions, as well as $150,000, have been seized from her bank account, Raguse said.