Politics

FTC CHAIRMAN: Feds Move to SEIZE Half a Minneapolis City Block From Fraudsters — 'It Took One Brave Kid and a Camera'

Gary FranchiOctober 21, 202685 views
Federal seizure of a Minneapolis block tied to SNAP fraud allegations.
Federal seizure of a Minneapolis block tied to SNAP fraud allegations. | Next News Editorial Illustration
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The Trump administration is moving to seize half a city block in Minneapolis — property prosecutors say was bought with food-stamp money meant for hungry Minnesotans — and the Federal Trade Commission chairman made clear this week who gets the credit for cracking the case open.

Speaking Tuesday, FTC Chairman Andrew Ferguson pointed to independent journalist Nick Shirley in the room and told the assembled press corps that the fraud at Minneapolis childcare operations, including the now-infamous Quality Learning Center, had been hiding in plain sight for years while nobody in the legacy media touched it.

"A lot of journalists [are] in the room today. Everyone knew about the Quality Learning Center. They were cited hundreds of times over the course of a couple years. No one reported it. None of your outlets reported it. It took one brave kid and a camera to make everyone aware of this, and it launched a revolution."

According to PJ Media's coverage of the event, Ferguson said the Justice Department filed the previous day to seize half a city block in Minneapolis consisting of property allegedly obtained with SNAP dollars — funds that should have gone to hungry Minnesotans but were instead, per the chairman, "used to buy illegally and fraudulently property in Minneapolis."

Ferguson credited the department's team by name — Todd Blanche, Colin McDonald and Trent McCotter, whom he described as the acting U.S. deputy attorney general — saying they have been "going after these fraudsters night and day." PJ Media reported Ferguson's remarks and noted that the alleged fraud schemes in Minnesota involved both Somali and native-born operators.

WHISTLEBLOWER PAYDAY: 1% COMMISSION ON VERIFIED FRAUD

The administration is also putting money behind future tips. According to PJ Media, the Trump administration will offer a 1% commission on the amount of fraud identified when a tip is substantial and verifiable. Ferguson indicated Shirley — whose camera-first reporting on Minnesota's childcare "learning centers" set the investigation in motion — deserves to be first in line for such a commission, per PJ Media's account.

The Quality Learning Center drew attention after Shirley's videos documented centers that appeared to be collecting public money while operating with little or no evidence of actual childcare. The name "Quality Learing Center," with its misspelling, became shorthand online for the scandal. PJ Media's report notes the facility had been cited hundreds of times over a period of years — yet, by Ferguson's account, no mainstream outlet reported it until Shirley's footage forced the issue into public view.

WHAT THE SEIZURE WOULD ACTUALLY DO

A civil forfeiture action targeting half a city block is a concrete step, not a press release. If the Justice Department prevails, the property — allegedly purchased with diverted SNAP benefits — would move into federal custody, and the assets could ultimately be returned, repurposed or liquidated under forfeiture rules. For Minneapolis residents, the filing marks the first visible effort to claw back real estate allegedly bought with money that was supposed to feed low-income families in the same city.

The 1% whistleblower commission changes the incentive math for anyone sitting on knowledge of similar schemes. A verified tip on a multi-million-dollar fraud operation would be worth tens of thousands of dollars — a structure designed to produce tips from insiders rather than rely on federal auditors to find everything themselves.

It is not yet known how many additional properties or entities the Justice Department's forfeiture filings will target, or whether the Quality Learning Center's operators face separate criminal charges. The FTC's role in the announcement centered on Ferguson's public remarks; the forfeiture action itself was filed by the Justice Department.

The broader Minnesota fraud picture has drawn repeated attention from the administration in recent months, with the president's second-term agenda emphasizing accountability for public benefits diverted from their intended recipients.

Our Take

Notice the order of operations here. A kid with a camera did what a room full of credentialed reporters refused to do for years — and the FTC chairman said it out loud, to their faces, in a press conference. That is the actual story. The legacy media didn't miss the Quality Learning Center because it was hidden. Ferguson said it was cited hundreds of times. They missed it because covering fraud in a Democrat-run state didn't fit the narrative, and it took an outsider with a phone to drag it into the light.

Now the feds want to take half a city block back. Good. Every building bought with SNAP dollars that should have fed a hungry kid in Minneapolis should be seized, sold, and the proceeds returned to the people they were stolen from. The 1% bounty is smart policy for the same reason Shirley's camera worked: it pays people to tell the truth instead of waiting on agencies that have every incentive to look away.

The question for readers tonight is simple. If a 1% commission had existed five years ago, how many Minneapolis childcare centers would still be standing? And how many of the journalists who ignored the story still have a job?

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Gary Franchi
Gary Franchi

Chief White House Correspondent at Next News Network. Executive Producer and Lead Anchor.

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Comments (11)

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P
PatriotDad4Verifiedjust now
Amen! Lock them up and sell the property.
H
HeartlandHannahVerifiedjust now
Sell it and put the money back in the community, not into some agency slush fund.
G
GrannyWithAGlockVerifiedjust now
My late husband ran a small hardware store and we got scammed by a contractor who skipped town. Cops said it was a 'civil matter.' Glad to see someone finally going after the big fish.
D
DryCreekRancherVerifiedjust now
Question — is this actually criminal fraud, or are they stretching a regulation to seize property? I want the crooks gone too, but 'FTC moves to seize' has a way of expanding every time we let it.
L
LibertyMom76Verifiedjust now
Valid concern, but a kid with a camera cracked it — I'll take that over another agency press release any day.
S
SkepticalSamVerifiedjust now
Fair point. Due process first, then seize. That's how it's supposed to work.
F
FlyoverFrankVerifiedjust now
Finally some accountability! This is what happens when citizens stop waiting for permission and start documenting. We need a thousand more kids with cameras.
O
OldRayInTexasVerifiedjust now
Seize half a city block from fraudsters — good. Now do it without civil asset forfeiture shenanigans and I'll cheer louder.
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LibertyMom76Verifiedjust now
It took one brave kid and a camera to do what a whole alphabet soup of agencies couldn't. Makes you wonder what else is hiding in plain sight while we fund these bloated bureaucracies.
C
CapeCodCrankVerifiedjust now
Exactly. The kid did the work on a shoestring and the feds get the headline. Story of our lives.
M
MAGA_Mike_88Verifiedjust now
Media buried this story for months. One kid with a camera outdid the entire mainstream press corps. Sad but true.