Verdict with Ted Cruz – “Explosive Undercover Video of Massive Somali Fraud and Democrat Complicity & Corruption”

Date: December 29, 2025

Hosts: Senator Ted Cruz, Ben Ferguson
Episode Theme:
A deep dive into recent undercover reporting on massive fraud within Minnesota’s daycare and healthcare subsidy systems—centering on the Somali community, alleged Democrat complicity, and the viral exposé by 23-year-old YouTuber Nick Shirley.

Overview

In this episode, Ted Cruz and Ben Ferguson break down an explosive investigation into large-scale fraud involving Minnesota daycare and healthcare subsidies. The centerpiece is a viral undercover video by Nick Shirley, who directly visits supposed daycares and healthcare centers, documenting empty locations receiving millions in taxpayer funds. The hosts discuss the alleged collusion between Somali-run organizations and Democratic politicians in Minnesota, lambast the lack of investigative response from mainstream media, and call for accountability and real journalism.

Key Discussion Points and Insights

1. Introduction and Contextualization (03:15–05:02)

• Ferguson frames the episode by referencing Minnesota Governor Tim Walz’s 2023 tweet touting increased funding for child care providers.
• Cruz characterizes the situation as “fraud,” “corruption,” and a “vicious and corrupt circle,” describing politicians and Somali community leaders as complicit partners.
• Quote:
  "This is a story number one about fraud. It's about corruption, it's about political corruption... The scale of this theft, it really boggles the mind." — Ted Cruz (05:02)

2. Scale and Mechanics of the Alleged Fraud (05:02–08:54)

• Cruz alleges up to half of $18bn in Minnesota Medicaid spending is fraudulent, much supposedly siphoned via Somali-run networks, some allegedly funding foreign terrorist organizations.
• The fraud is enabled, per Cruz, by politicians who ignore or facilitate it in exchange for votes or donations.
• The scale and brazenness—e.g., daycares with no children, yet getting millions—are emphasized with incredulity.

3. The Investigative Work of Nick Shirley (11:55–18:57)

• Shirley and his associates visit multiple daycare locations, all officially licensed and receiving state funding.
• At each site:
  • Blinds and windows are blocked out
  • Doors locked during open hours
  • No evidence of children or playground equipment
  • Neighbors and former workers report never seeing children
• Quote:
  "Between the two of these child care centers, they're pulling in about $3 million a year. And there are no children. Every facility you go to, the windows will be blocked out...you won't see a single child at any of these facilities."
  — Nick Shirley (13:23)
• Encounters become tense, with locals and apparent owners defensive or hostile; claims of “violence” and intimidation are raised.

4. Political and Media Complicity (18:57–23:39)

• Cruz and Ferguson argue it’s impossible for authorities not to be aware, given the blatancy and large amounts.
• They skewer the mainstream/corporate media for not pursuing the story, terming them “fringe leftist ideologues.”
• Quote:
  "There is nothing mainstream about the dishonest, lying propagandist hacks that populate CBS, ABC, NBC...I call them corporate media." — Ted Cruz (11:06)
• The discussion compares the fraud to “cartels,” and alleges links to terror financing.

5. Confrontations with Locals and ‘Karen’ Meme Moment (27:07–31:42)

• Shirley’s team is followed by agitated Somali groups; they capture a confrontation with a “liberal Karen”—a local woman who shouts warnings about “ICE,” refuses to engage on the substance of the fraud, and opposes the investigation.
• Daycare facilities even have misspelled signage, like “Quality Leering Center,” further underscoring the lack of oversight.
• Ferguson notes, in comparison to the mafia, even mob front businesses ran actual services while laundering money—whereas here, nothing exists except paper shuffling.
• Quote:
  "They can't even spell the word learning correctly."
  — Ben Ferguson (32:39)

6. Systemic Failures and Political Incentives (32:39–38:16)

• Cruz outlines how basic state or city inspections could expose the fraud instantly, but alleges intentional inaction:
  • No one from the state or city checked sites
  • Inspectors could have exposed everything with a walk-through
• He points to the connection between political support and Somali-American bloc voting for Democrats as the incentive for inaction.
• Quote:
  "They are utterly complicit in helping them steal billions of dollars...they elect some of the most rabidly anti-American [politicians]."
  — Ted Cruz (36:50)

7. Attempts to Expand the Investigation: Autism and Health Care Centers (40:04–45:56)

• The Shirley team next attempts to enter autism centers and home health care businesses, with similar results—doors locked, evasive answers, no visible activity.
• Cases cited:
  • An autism center unable to provide any numbers on children served
  • A single building hosting 14 Somali-owned health care companies, none giving information or evidence of services
• Exponential growth in autism Medicaid payments is highlighted:
  • From $1.3m (2017) → $228m (2024) (51:09)
• Quote:
  "They just write the check. Human Services, they got to clean out the whole bunch. They're the ones who enabled this fraud."
  — Nick Shirley (45:14)

8. Police Involvement and Aftermath (47:14–53:43)

• Police are called on Shirley’s team while visiting the health care center building, citing complaints of harassment.
• The hosts argue the police response demonstrates political priorities: protecting alleged criminals, not taxpayers.
• Quote:
  "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." — Ted Cruz (49:27)
• Ferguson and Cruz urge viewers to watch and share the entire viral Shirley video and express profound frustration at a lack of state and media action.

9. The Cost and National Implications (51:05–53:43)

• The alleged fraud is directly tied to Minnesota’s budget woes: from a $18bn surplus to a $6bn deficit over two years, which Cruz ties to this fraudulent cash flow.
• Hosts connect the local issue to national politics and terrorism, asserting substantial federal funds are vaporized.
• Cruz and Ferguson close with calls for accountability, further investigation, and wider sharing of Shirley’s work.

Notable Quotes & Memorable Moments

• Cruz on Journalism:
  "None of the corporate media was interested in investigating this...investigative journalism, actually going in—well, as the word says, investigating, asking, knocking on the door." (06:56)

• Nick Shirley (Firsthand Account):
  "I've come by this place a hundred times. I've never seen a child here, ever. The only thing I've ever seen is someone standing outside smoking." (15:46)

• Political Commentary:
  "They are not mainstream. They are fringe leftist ideologues...I refuse to suggest there is anything remotely mainstream about them." — Cruz (11:06)

• Daycare Confrontation Humor:
  "I'd like to know if this is a legit business...Do you put your kid here in this daycare? There is one child in there, yeah." — Nick Shirley’s interactions (18:26)

• Ferguson on the Mob Analogy:
  "I give the mob actually some credit. Usually when the mob was running like a dry cleaner, they actually had clothes...They're not even faking it." (32:39)

• Cruz on Structural Corruption:
  "It is organized crime. And understand the Democrat politicians are not innocent bystanders... They want this fraud and grift to continue because the people who are stealing are turning around and, number one, voting for the Democrats." (51:31)

Timestamps for Key Segments

• 03:15–05:02: Introduction of topic and framing of governor’s role
• 11:55–18:57: Play-by-play of Nick Shirley’s undercover investigation at fraudulent daycare sites
• 27:07–31:42: ‘Karen’ meme moment—liberal local confronts crew, demonstrates ideological stonewalling
• 40:04–45:56: Expansion to autism centers, healthcare companies, illustration of multimillion dollar scale
• 47:14–49:27: Police arrive, Shirley’s crew forced off property, discussion of structural priorities
• 51:09–52:05: Explosive Medicaid statistics, financial scale of fraud

Episode Takeaways

• The episode charges massive, blatant fraud within Minnesota’s child care and healthcare subsidy systems.
• Allegations include collusion between Somali-run organizations and Democratic politicians, with direct political and possible terror-financing implications.
• Undercover coverage by citizen journalist Nick Shirley is highlighted as essential, with harsh criticisms for media and government inaction.
• The episode closes with impassioned calls for accountability, further journalism, and broader public awareness.

For listeners seeking deeper understanding, the hosts encourage watching the full Nick Shirley exposé on X (Twitter), YouTube, and Facebook.
Final Call to Action:
"Watch this whole video and let me say, I don't know Nick Shirley, but bravo. This is an American citizen doing a real service to this country."
— Senator Ted Cruz (53:24)