ICE probes suspected Minnesota fraud sites as officials follow potential $9B money trail

ICE told Fox News they're on the ground in Minneapolis investigating allegations of fraud involving child care centers, as authorities follow a sprawling money trail that federal prosecutors say could ultimately total more than $9 billion.

"We're learning a lot," ICE Director Todd Lyons told "Fox & Friends" on Tuesday.

Lyons shared that the agency is looking into possible criminal and terrorist ties overseas, adding that the probe speaks to the breadth of ICE's work.

"[We're] going with criminal warrants to conduct these investigations," he said.

HOUSE GOP WHIP URGES CITIZENSHIP REVOCATIONS TIED TO MINNESOTA FRAUD SCHEMES

"All too often you hear that ICE is just out there terrorizing the community or conducting administrative work. We've been on the ground in Minnesota conducting criminal investigations and Homeland Security investigations [and have] gone door to door to a lot of these suspected fraud sites all over St. Paul and Minnesota."

The investigation follows widespread fraud allegations, including ones stemming from a viral video posted by independent journalist Nick Shirley showing visits to several Minnesota daycare facilities, including Quality Learning Center in Minneapolis, which appeared inactive during the visit despite receiving state childcare assistance funds.

Minnesota Department of Children, Youth and Families Commissioner Tikki Brown said during a Monday news conference that prior inspections of the sites – which occurred at random and within the last six months – did not uncover fraud and children were active at the sites.

STATE OFFICIALS AND DAYCARE MANAGER PUSH BACK ON VIRAL VIDEO FRAUD ALLEGATIONS IN MINNESOTA

Brown additionally acknowledged questions about the timing of the video visits, noting that regulators are seeking clarity on whether footage was recorded during operating hours or on days when centers were scheduled to be open.

"While we have questions about some of the methods that were used in the video, we do take the concerns that the video raises about fraud very seriously," she said.

A spokesperson for Gov. Tim Walz also addressed the swath of fraud allegations plaguing the state, saying, "The governor has worked for years to crack down on fraud and asked the state legislator for more authority to take aggressive action. He has strengthened oversight."

Lyons criticized Minnesota's policies, alleging that "sanctuary" jurisdictions allow bad actors to "hide in plain sight" and commit crimes.

"You see a lot of these fraudsters use a lot of the sanctuary rules and sanctuary protections to enact criminal fraud just like this," he said.

The manager of Quality Learning Center at the core of some allegations vehemently denied them, alleging that the video was recorded outside posted hours and misrepresented the site.

"There’s no fraud going on whatsoever," said Ibrahim Ali, the center’s manager. "Kids come to us, clients come to us, their parents come to us – they’re here daily, they leave on time, they come on time. There is no fraud going on whatsoever."

Fox News' Greg Wehner contributed to this report.