Video transcript
Started as a daycare fraud investigation in Minnesota, is now entering a far more serious phase. After the first arrests, investigators say the case did not stop at fake daycare centers. According to new sources close to the investigation, authorities are now tracing where the money actually went and what they're finding is raising even more alarm. Bank records show public funds being moved through layers of shell accounts, routed across states, and withdrawn in cash within days. Some accounts were linked to individuals with no childcare background at all. Officials say this was not sloppy fraud. It was organized. Several properties tied to the case are now under surveillance. Others have been quietly shut down. Federal agencies are reportedly expanding audits beyond Minnesota, reviewing similar programs in other states. Meanwhile, families who depended on legitimate daycare assistance are now facing sudden disruptions as payments are frozen and facilities close overnight. Investigators warn this may not be a single state scandal, but a blueprint. And now a new question is spreading fast. If this system was exploited here, how many others are still operating unnoticed? More updates expected.
Transcribed automatically. Expect errors in names and numbers.