Verdict with Ted Cruz: Week in Review

Episode: Fake Autism Centers in Fraudesota, Elon Musk's Warning & Jail Time for High Level Officials
Date: January 3, 2026
Hosts: Senator Ted Cruz & Ben Ferguson
Guest Investigator: Nick Shirley

Episode Overview

This "Week in Review" episode dives into recent exposés on massive state fund fraud in Minnesota, especially concerning fake daycare and autism centers, alleged money laundering through home healthcare companies, and the broader political implications. Ted Cruz and Ben Ferguson are joined by investigator Nick Shirley, sharing on-the-ground findings. The episode also revisits previous warnings by Elon Musk about entitlement fraud and debates the prospects of political accountability, up to and including potential jail time for elected officials.

Key Discussion Points & Insights

1. Fraud in Minnesota Child Care & Health Care Systems

[03:06-14:22]

• Undercover Investigations:
  • Nick Shirley’s fieldwork reveals a pattern: numerous daycare and autism centers receiving millions in state funds, with little evidence of actual children or operations.
  • Many centers are shuttered, have empty lots, or refuse enrollment—sometimes immediately reopening under new licenses after violations.
• Fraudulent Repetition:
  • Example: "Creative Minds Daycare" was shut down for violations ($2.45 million received), immediately reopened as "Super Kids Daycare" at the same address—no kids present ([07:26]).
  • Quote: "Millions and millions of dollars. And again, the kids are missing. Where are the kids?" — Nick Shirley ([08:57])
• Health Care Company Scams:
  • Discovery of a single building housing 14 Somali-owned home healthcare companies, each collecting funds yet clearly not offering services ([09:28-12:09]).
  • Estimated $50-60 million annually funneled through such buildings ([12:05]).
• Government & Law Enforcement Response:
  • Investigators are met with police intervention and accused of harassment when asking basic questions.
  • Quote: "The police show up, not to arrest these people that are just lynching our tax dollars... Instead, when a 22, 23 year old YouTuber who's a hero is the guy they're harassing." — Ben Ferguson ([13:00])
• Political Cover:
  • Cruz and Ferguson allege officials are covering for scammers due to political donations and vote blocs.

2. Elon Musk’s Warning on National Entitlement Fraud

[17:58-21:20]

• Elon Musk (flashback interview):
  • Re-emphasizes his view that massive quantities of entitlement payments (Social Security, Medicare, SBA loans, etc.) are funneled to fraudulent recipients, including illegal immigrants.
  • Scale: "I think across the country it's well north of 100 billion, maybe 200 billion." — Elon Musk ([19:18])
  • Argues that entitlement fraud has been used as an election strategy to import and retain voting blocs.
  • Quote: "Their objective is to make it one party socialist state... it'll be much worse than California, because at least California is mitigated by the fact that someone can leave." — Elon Musk ([20:55])
• Bill Ackman Tweet Discussion:
  • Raises the paradox of empty daycares being funded despite the high proportion (81%) of Somali immigrants in Minnesota being on welfare ([22:10]).
  • Cruz's takeaway: Supports fraud-buying votes narrative—"The answer is, it doesn't [make sense], unless the goal is to buy votes." — Ted Cruz ([23:27])

3. Will High-Level Officials See Jail Time?

[23:32-26:54]

• Prospect for Accountability:
  • Cruz underscores the DOJ and FBI are investigating, but prosecution requires executive branch action, not legislative ([24:07]).
  • Congressional Role: Shine light and fuel momentum for accountability. Possibility of hearings that could aid prosecutions, but not substitute for them.
• Satirical Political Ad:
  • A parody ad calling Governor Tim Walz "the most fraudulent man in America," used to discuss political repercussions and the culture of impunity ([26:10]).
• Quote: "This is only going to get worse... but we are going to see accountability." — Ted Cruz ([26:54])

4. Federal Action & Policy Fallout

[27:36-31:14]

• HHS Crackdown:
  • Assistant Secretary Alex Adams announces new safeguards, payment justifications, full reviews, and a dedicated fraud hotline.
  • Emphasizes intent to prosecute bad actors, regardless of rank ([28:52]).
• Political Blowback:
  • Governor Tim Walz accuses Trump administration of politicizing the issue ([30:41]).
  • Cruz rebuts: "When you let Somalian fraudsters steal $9 billion from taxpayers, you know who doesn’t get that? Real Minnesotans who are not fraudsters. Real kids." ([31:15])
  • Tightening of federal funds to Minnesota until stricter oversight is implemented.

5. Political Context: Ethnic Voting Blocs & Allegiance

[32:59-39:35]

• Question of Motivation
  • Ben Ferguson and Ted Cruz argue financial and voting power drive political reluctance to address fraud.
  • Use of video where the mayor of Minneapolis is seen dancing with a Somali flag as example of political pandering ([34:32]).
• Congresswoman Ilhan Omar & Somali PM:
  • Somali PM Hassan Ali Khairi, with Ilhan Omar present, states her interests are “not of the American people … but Somalia.”
  • Quote: "You want to know why so many Democrats look the other way as the Somalian fraudsters were robbing the taxpayers blind? It is because they were in on it." — Ted Cruz ([39:28])

Notable Quotes & Memorable Moments

• On complacency:
  • "They don't want to shut them down. They want to cover it up... All right, to all the corporate reporters who've done no journalism for years except attacking Donald Trump... Here's the next place the story's going." — Ted Cruz ([04:12])
• On state leadership:
  • "How in the world can you burn through $24 billion in two years? This is how. Right here. This is a huge part of it." — Nick Shirley ([09:55])
• On repercussions for fraud:
  • "Anyone who's involved in perpetrating this fraud against the American people should expect to be prosecuted to the fullest extent of the law." — Assistant Secretary Alex Adams ([29:01])
• On political strategy:
  • "Their objective is to make it one party socialist state. And it'll be much worse than California..." — Elon Musk ([20:55])
• On vote-buying via social services:
  • "It doesn't unless the goal is to buy votes. And if the goal is to buy votes, it makes perfect sense. And everyone responsible needs to go to jail." — Ted Cruz ([23:27])
• On the investigation’s limitations:
  • "The only federal entity that can prosecute is the executive branch... The legislature cannot prosecute anyone. What we can do is shine a light." — Ted Cruz ([24:07])
• On the cultural shift:
  • "That is the most true. Effeminate, prancing, ass kissing... Like, unbelievably, he's just dancing and waving a Somali flag." — Ted Cruz on Mayor Frey ([34:51])
• On Ilhan Omar’s loyalty:
  • "The interest of Ilhan are not of the American people. The interest of Ilhan is that of Somalia." — Quoting Somali PM ([39:14])

Important Timestamps

• [03:06-14:22]: Minnesota fraud exposé with Nick Shirley
• [17:58-21:20]: Elon Musk on national entitlement fraud
• [24:07-26:54]: Discussion of possible criminal accountability for officials
• [27:36-31:14]: HHS steps in; federal and political fallout
• [34:32-39:35]: Political allegiance, ethnic voting blocs, and Ilhan Omar segment

Tone & Style Notes

• The tone throughout is combative, direct, and at times satirical, particularly when lampooning state officials and exposing what the hosts deem as corruption or incompetence.
• Ted Cruz and Ben Ferguson use rhetorical questions, sarcasm, and vivid imagery to drive their points home and highlight the scale of purported fraud and what they see as willful political complicity.

Summary

This episode of "Verdict with Ted Cruz" presents a deep-dive investigation into large-scale fraud in Minnesota’s welfare-funded daycare and healthcare industries, alleging that state and city officials knowingly ignored or enabled fraud for political and financial gain. Highlights include undercover reporting exposing fake child care centers, debate about the national scale of welfare fraud (with reference to Elon Musk), and a strong call for criminal accountability at the highest levels of state government. Federal action is underway, with the Trump administration touted as bringing necessary scrutiny and reforms. The hosts frame the issue as both a financial scandal and a calculated political strategy to bolster a voting bloc, using striking examples and pointed satire to illustrate what they argue is systematic corruption.