Homeland Security Investigations (HSI) conducted raids Tuesday on locations linked to suspected childcare fraud schemes in Minnesota's Somali community, following undercover videos by 22-year-old Nick Shirley exposing vacant facilities allegedly receiving millions in state funds.

DHS Secretary Kristi Noem confirmed the operation targeting "rampant fraud," with the Justice Department having charged 98 individuals—85 of Somali descent—in related cases siphoning over $250 million through fake enrollments and kickbacks.

Shirley's videos showed empty centers claiming thousands of "ghost children" for reimbursements up to $4 million each. Officials described it as the "tip of the iceberg" amid historical losses nearing $1 billion from similar scams.

State leaders face scrutiny over lax inspections and reviews underway for accountability.

The raids mark escalated federal action against welfare fraud networks.