Podcast Summary

Podcast: The Clay Travis and Buck Sexton Show
Episode: Verdict with Ted Cruz: Explosive Undercover Video of Massive Somali Fraud and Democrat Complicity & Corruption
Date: December 30, 2025
Hosts: Senator Ted Cruz and Ben Ferguson
Guest/Feature: Highlighted reporting by Nick Shirley (YouTuber/Independent Journalist)

Episode Overview

This episode centers on an explosive undercover investigation into massive alleged fraud committed by Somali-run daycare and autism centers in Minnesota, amounting to billions in taxpayer losses. The hosts, Ted Cruz and Ben Ferguson, spotlight the viral video journalism of Nick Shirley, who visited supposed centers to find virtually no children or legitimate activity—accusing the Democratic Party of complicity and cover-up at the state and local levels. The discussion also touches on the media’s lack of coverage, and alleges a corrupt feedback loop involving political donations and votes.

Key Discussion Points & Insights

1. Setting the Stage: The Minnesota Daycare & Healthcare Fraud Scandal

[03:24]

• The episode opens with Cruz and Ferguson reacting to the Minnesota governor’s 2023 tweet touting massive public funding for childcare—billions that, according to their investigation, are fueling fraudulent operations.
• Cruz:

  “This is a story... about political corruption. It is about an immigrant community, the Somali community, that came over and discovered American politicians willing to be partners with them, partners in robbing the taxpayers.”

• Cruz claims nearly $9 billion (half of $18 billion Medicaid/childcare funding) is potentially fraudulent:

  “One out every two dollars spent was stolen.”
  [04:23]

• They allege the fraud involves kickbacks to politicians and, via remittances, to terrorist groups abroad.

2. Viral Journalism: Nick Shirley’s Investigation

[11:14–18:53]

• Shirley’s independent video work is described as “real journalism,” with Cruz lamenting mainstream (“corporate”) media’s refusal to cover the story.

  “There was a time when that collection of activities was called journalism... now, none of the corporate media was interested in investigating this.” [04:23]

• Shirley visits multiple Minnesota centers, finding:

  • Windows blacked out; doors locked, “open” hours with no activity
  • State records showing millions disbursed to each center per year

• Notable field quotes:

  “Between the two of these childcare centers, they're pulling in about $3 million a year. And there are no children.” [12:42] “I've never seen a single child at this building right there [in nine years].” [13:45]

• Failed attempts to enroll a child (“Joey Shirley”) result in evasive staff, empty buildings, and occasionally hostile encounters.

3. Evidence of Systemic, Brazen Fraud

[20:04–22:43]

• The hosts note the ease with which the fraud could have been discovered by authorities:

  “Any idiot inspector could have walked up and... noticed it’s not subtle. No, there are no kids. It’s a total brazen lie.” [20:04]

• Ben Ferguson:

  “This is the cartels. This is exactly what you're dealing with here with the Somalis in Minnesota.” [22:38]

• They allege funds are sent in part to Al Shabaab (terrorist group) and warn of organized crime at work.

4. Political and Media Complicity

[26:49–34:31]

• The hosts highlight a viral encounter with a “liberal Karen”—a local woman hostile to any investigation, screaming “ICE” (immigration agents) at Shirley:
  • “In liberal Karen world, facts don't matter... Truth is evil and she hates you.” [26:49]
• Cruz and Ferguson repeatedly accuse state authorities (especially Democrats like Gov. Tim Walz, AG Keith Ellison, Rep. Ilhan Omar) of deliberate cover-up:

  “Democrat politicians who won’t even send an inspector... They are utterly complicit in helping them steal billions of dollars.” [36:33]

5. Attempts at Accountability—and a Callout to the Media

[37:08–38:56]

• Ferguson and Cruz insist that a responsible official or journalist would have to respond and take action after seeing Nick Shirley’s evidence.
• Cruz:

  “If you are a person in a position of power... wouldn't the first thing you would do... be to get together with law enforcement and send out teams to these places immediately?” [37:45]

• Cruz openly invites the press to pursue campaign finance overlays:

  “How much of that money has gone directly into the campaign coffers of the elected Democrats?” [38:33]

6. Fraud Extends Beyond Daycares: Autism and Healthcare

[39:38–47:37]

• Shirley expands the investigation to “autism centers” and “home healthcare” companies:
  • Allegedly dozens of shell companies exist at single addresses
  • Staff at these businesses provide evasive or no answers
  • The state’s Medicaid autism payments jump from $1.3 million (2017) to $228 million (2024), with the hosts alleging most is fraud
• Encounter with police [46:15]:
  • Rather than investigating the fraud, police are called to address Shirley’s “harassment” of those in the fraudulent buildings
  • Cruz:

    “The police know their job is to protect the criminals, protect the thieves, because the thieves are funding the politicians who are in charge of the city.” [48:19]

7. The Broader Political Machine

[49:57–52:34]

• Cruz contends the fraudulent operations fund Democratic campaigns and maintain voting blocs:

  “This is organized crime and... Democrat politicians... want this fraud and grift to continue because the people who are stealing are turning around and number one voting for the Democrats... [and] writing checks... funding the Democrat campaigns.” [51:07]

• Local media is accused of intentional silence and running interference for those in power.

Notable Quotes & Moments

• Senator Ted Cruz [04:23]:

  “This is a story number one about fraud. It's about corruption. It's about political corruption.”

• Ben Ferguson [22:38]:

  “This is the cartels. This is exactly what you're dealing with here with the Somalis in Minnesota.”

• Nick Shirley (field investigation) [12:42]:

  “Between the two of these childcare centers, they're pulling in about $3 million a year. And there are no children.”

• Cruz on political donations [38:33]:

  “How much of that money has gone directly into the campaign coffers of the elected Democrats?”

• On government accountability [37:45]:

  “If you are a person that is in a position of power as an elected official... wouldn't the first thing you would do... be to get together with law enforcement [and] immediately send out teams... to investigate?”

• On expanding fraud [51:07]:

  “This is organized crime... they want this fraud and grift to continue because the people who are stealing are... voting for the Democrats... and funding the Democrat campaigns.”

• Cruz praising Nick Shirley [52:25]:

  “Bravo. This is an American citizen doing a real service to this country.”

Important Timestamps

• [04:23] — Cruz outlines the alleged scale and flow of fraud, money, and political complicity
• [11:14] — Shirley and Cruz/Ferguson detail the viral investigation approach
• [12:42] — Onsite findings: multimillion-dollar payments, zero evidence of children
• [20:04] — Ferguson and Cruz discuss the inability of the state to provide any oversight
• [26:49] — The “Karen” confrontation: local reaction and media stereotypes
• [36:33] — Extended discussion of Ilhan Omar, campaign finance, broader implications
• [39:38] — Fieldwork extends to autism centers and disability/health care fraud
• [46:15] — Police involvement, Shirley’s crew kicked out while exposing fraud
• [49:57] — Medicaid/Autism funding stats and summary of total alleged fraud
• [52:25] — Praise for Nick Shirley, calls for audience to circulate his findings

Conclusion

The episode is a forceful, sometimes humorous but deeply critical exposé on alleged systemic, institutionalized fraud by Minnesota-based, Somali-run childcare and healthcare businesses. The hosts accuse Democratic politicians of enabling and protecting this scheme in exchange for votes and financial support, and lambaste mainstream media for silence. The episode’s emotional core is the viral, shoe-leather investigative work of Nick Shirley, celebrated as a rare example of true journalism.

Takeaway: The hosts urge all listeners to spread awareness of Shirley’s video and demand urgent accountability from both the media and elected officials.