🕒🏚 “Operation Scorpion Paper” Exposes Alleged Ghost Daycare Fraud Scheme in Minneapolis

A late-night federal operation in Minneapolis has led to the exposure of what authorities describe as a large-scale public funding fraud scheme centered around a so-called “Ghost Daycare.” The investigation, dubbed Operation Scorpion Paper, was carried out by the Federal Bureau of Investigation and followed what officials say began as a routine financial compliance review.

According to investigators, the daycare facility allegedly collected tens of millions of dollars in public funds despite never enrolling or caring for a single child. Authorities claim the property was staged to simulate legitimate operations, reportedly using pre-recorded children’s laughter and strategically placed empty car seats to create the appearance of daily activity.

During the raid, agents reportedly uncovered concealed vaults containing gold reserves, cryptocurrency assets, and detailed financial records. Among the seized materials was what officials referred to as a “Red Scorpion” ledger, which they allege outlines connections to a broader shadow network. Investigators say the trail points toward an abandoned paper mill believed to play a role in the financial structure of the scheme.

Officials have labeled the operation “Systemic Ghosting,” describing it as a sophisticated laundering front potentially linked to wider financial misconduct. While several individuals are under investigation, authorities caution that inquiries remain ongoing as forensic teams analyze digital and financial evidence.

The case has raised broader questions about oversight mechanisms for public funding programs and how such an operation allegedly operated undetected for an extended period.