The Clay Travis and Buck Sexton Show – Hour 3

Episode Theme: Massive Fraud Scandal in Minnesota
Date: December 29, 2025
Host: John Cobelt (sitting in for Clay Travis and Buck Sexton)
Notable Guest: Joe Khalil (News Nation reporter)

Episode Overview

This episode zeroes in on a staggering fraud scandal in Minnesota involving billions of taxpayer dollars siphoned off via fake nonprofits, primarily within the Somali immigrant community. John Cobelt, filling in as host, is joined by reporter Joe Khalil to dissect the latest bombshell: viral video evidence of non-existent daycare centers supposedly serving needy children but found empty and non-operational. The segment explores the scale of the fraud, failures of state oversight, the political implications for Governor Tim Walz, and reactions both locally and nationally.

Key Discussion Points & Insights

1. The Scope of the Minnesota Fraud Scandal

• What happened: Billions in Minnesota taxpayer funds, meant for programs like childcare and food assistance, were funneled to fake charities and nonprofits.
• Key demographic: Many of the fraudulent organizations were tied to the state's Somali immigrant community.
• Nick Shirley Investigation: Independent journalist Nick Shirley released a 42-minute viral video exposing numerous phony daycare centers, funded with over $110 million, which had no children, staff, or actual operations.
• Public Reaction: The video amassed 116 million views on X (formerly Twitter), sparking national outrage and attention from top officials, including the FBI and Vice President.

“Nick Shirley, a young independent journalist, released a 42 minute tape … Every single one of them were phony. Sometimes they were just signs outside a doorway. … There were no children being taken care of.”
— John Cobelt [03:18]

2. Investigative Journalism & Political Fallout

• Visual proof succeeds where print failed: The scandal had been reported in print (NYT front page a few weeks back), but the raw visual evidence caused resonance with the public and forced political attention.
• Governor Tim Walz Under Scrutiny: Tim Walz's administration is accused of years of inaction and inadequate oversight, even after COVID-era frauds were discovered and prosecuted.
• Ongoing Investigations: The Minnesota legislature and congressional committees (including the House Oversight Committee led by James Comer) are now probing deeper and considering subpoenas.

“It just seems like there’s been a lot of this going on and very few of these places have actually gotten the accountability you would hope for.”
— Joe Khalil [12:01]

3. Failures of Oversight and State Response

• Basic oversight missing: Questions arise as to how these centers were funded with no proper verification, site checks, or accountability.
• Nick Shirley’s method: With just an iPhone, a selfie stick, and public records dug up by his associate Dave, the journalist demonstrated the absence of legitimate activity at centers officially licensed for up to 99 children.
• State excuses vs. public disbelief: While the governor’s office claims certain fraudulent centers have been shut down, many more remain active. Public is not convinced these actions match the scale of the theft.

“Didn’t any Minnesota employees ever visit a childcare facility? … Don’t you send an inspector there? … You would have learned immediately because the doors were all locked and windows were blacked out.”
— John Cobelt [09:37]

4. Cultural and Media Reactions

• Community sensitivities: Reluctance to investigate fraud in the Somali community out of fear of being labeled racist led to media and official silence.
• Grassroots journalism vs. institutional failure: Nick Shirley’s solo investigation shamed local and national newsrooms who had the resources but not the initiative.
• Comic relief amid scandal: Accounts of bewildered Somali women and a panicked local woman (brandishing her phone as a “weapon” in protest) confronting the journalists at these sites.

“People were afraid that if you investigate Somalis, you’d be called racist. That’s the beginning and end of the story. That’s what the fear was. They’d be called racist. So there was no coverage being done.”
— John Cobelt [18:37]

5. Federal Response

• Homeland Security crackdown: As a result of public outcry, DHS initiated door-to-door searches for illegal aliens at the implicated fraud sites, as captured in social media posts and video evidence.
• Promise of accountability: DHS publicly affirmed that Americans "deserve answers ... and arrests when abuse is found."

“Department of Homeland Security announced they’re launching door to door searches for illegal aliens at fraud sites in Minneapolis.”
— John Cobelt [18:37]

Notable Quotes & Memorable Moments

• On the viral video’s reach:
  “You realize, that is like super bowl sized numbers … that he got with a 42 minute video.”
  — John Cobelt [12:39]

• On media failure:
  “What do people do all day at all these newspapers and television stations?”
  — John Cobelt [18:37]

• On government explanations:
  “One of the child centers that was featured in the video had already been shut down under Tim Walz’s administration. I don’t think that fully accounts for the fact that this allegedly has been happening for several years now and has continued to happen.”
  — Joe Khalil [08:15]

• Absurdity of nonexistent childcare:
  “There wasn’t anything to shut down ... it was just storefronts and addresses. I guess that was ... you knew where to send the check.”
  — John Cobelt [11:43]

Timestamps of Key Segments

• Introduction of Scandal Background and Nick Shirley's Video: [03:18]
• Interview with Joe Khalil (News Nation Reporter): [05:21]
• Discussion of Scale, Governor Response, and Systemic Failings: [07:49]
• Role of Media and Visuals in Public Outcry: [12:39]
• Details on Federal DHS Response: [18:37]
• Comic Anecdotes from the Investigation: [12:39], [18:37]

Tone & Language

The tone is direct, incredulous, and at times caustic—consistent with John Cobelt's style. There’s heavy criticism of state and local government incompetence, skepticism about bureaucratic excuses, and a mix of humor and exasperation about media and public institutions.

Conclusion

This episode unpacks a still-unfolding, massive fraud perpetrated under the noses of Minnesota officials, illustrating the power of independent journalism to spark national action when traditional institutions fail. It also highlights the political and social tensions of oversight, accountability, and the danger of identity politics shielding criminality. The hosts urge listeners to pay attention to grassroots reporting and demand real accountability from their leaders.