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Tipsheet

Nick Shirley Drops a Teaser for Part Two of His Fraud Investigation in CA: More Childcare Fraud

Nick Shirley Drops a Teaser for Part Two of His Fraud Investigation in CA: More Childcare Fraud
AP Photo/Evan Vucci

Independent journalist and YouTuber Nick Shirley is set to release part two of his California fraud investigation, this time targeting alleged childcare scams. In a teaser clip, Shirley examines a San Diego facility listed as serving 14 children, yet state inspectors had never seen the children, citing missing records and the absence of an official roster.

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In the brief clip, the woman Shirley question's becomes immediately confrontational, threatening to call the police and accusing him of targeting Somalis.

"Here is Hayden Serra Family Child Care," Shirley said. "This is a daycare right here. Apparently, they have 14 children enrolled."

"Tell us a little bit more about this daycare right here," he said to a woman helping him with his investigation.

"So, according to state records, when inspectors arrived here, there were 14 kids enrolled, but zero present, and then this place was also cited for having missing children's records and also not having a facility roster," she revealed.

"The problem with these daycares is that they receive money through a program called CalWorks, but as you see, there are no children actually there," Shirley said later. "These fraudsters are simply enrolling children on paper to receive government subsidies. Even after the state visits these daycares and confirms there are no children actually there, the government and the state continue to give these daycares money."

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This comes as the Trump administration and others have increasingly focused on fraud nationwide, with particular attention on California. Democratic leaders, including Governor Gavin Newsom and Attorney General Rob Bonta, have denied claims that the state is rife with fraud. 

Yet independent investigators like Nick Shirley and even the leading gubernatorial candidate Steve Hilton have uncovered hundreds of billions in alleged fraud without any special access to government records, raising questions about how a state with such expansive subsidies and a bloated bureaucracy can dismiss claims of widespread abuse. 

Newsom has even taken to mocking Shirley on X, rather than engaging with the findings or leveraging the opportunity to show he cares about combating fraud. 

The state government has neither confirmed nor denied the alleged fraud reportedly uncovered by Shirley and Hilton.

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