Federal Sweep in Minneapolis — 92 Arrested in Daycare Cartel Case

Before sunrise in Minneapolis, a quiet administrative inspection at a state-licensed daycare uncovered something far bigger than subsidy fraud. What began as a routine federal compliance check quickly exposed hundreds of “ghost children,” manipulated welfare records, and a carefully engineered money flow moving through more than 40 intermediary accounts.

As FBI and ICE analysts followed the financial trail, the investigation expanded beyond paperwork and into organized crime territory. Billions of dollars in assets were frozen, 92 individuals were arrested, and a hidden production facility tied to the same funding network was shut down in a coordinated federal sweep.

This investigation reveals how public assistance systems were exploited, how subsidy payments were redirected, and how a local daycare became the starting point for one of the largest federal operations Minneapolis has ever seen.