Shocking unearthed video from a 2018 state fraud case shows Minnesota parents dropping their children off at a day care center and then leaving with the kids moments later — as authorities probe a rampant billion-dollar fraud scheme in Minneapolis.
In the surveillance footage, dated 2015 and obtained by Fox 9, parents are seen signing their kids into the facility so providers could bill the state for full days of care for children who didn’t actually attend.
On some days, no families would even show up at all, but the day cares would still claim reimbursements from the government, the outlet reported at the time.
Another video obtained by Fox 9 shows a man handing an envelope to a parent with an alleged kickback payment for participating in the scheme.
The clips — which were recorded in 2015 but only came to light in 2018 — resurfaced amid outrage sparked by a viral video from independent journalist Nick Shirley that showed multiple child care centers in Minnesota that had received millions in state funding despite appearing inactive.
US Education Secretary Linda McMahon called the alleged fraud a “breathtaking failure.”

Minnesota authorities began cracking down on the schemes in 2014, and by 2018, authorities were looking into dozens of businesses suspected of bilking millions of dollars in government funds for the bogus child care services.
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