[ CYPHER CODE #827 ]
Government subsidy systems fail when oversight assumes compliance instead of verification.

[ CYPHER CODE #828 ]
Tax-exempt status becomes a profit tool when expenses are minimized and reporting is optional.

[ CYPHER CODE #829 ]
When income isn’t reported, eligibility rules stop working by design.

BRIEFING

Grant here. Nick Shirley is truly doing the work that many journalists nowadays pretend to do. He’s already blown the lid off of Minnesota’s deep corruption, but now he’s taking it a step further and is laying out how Minnesota’s childcare subsidy system can be exploited when tax-exempt status, cash payments, and weak oversight collide. Let’s break it down.

In a clip circulating online, Shirley describes what he says is 100% tax-free fraudulent income. This is the formula: start a daycare that qualifies for government subsidies, keep operating costs systematically low, and skim the difference.

But the second and perhaps most infuriating layer at play here is the payroll. Shirley claims workers are paid in cash instead of being formally reported, which avoids taxes and keeps incomes off the books. So, not only are these places receiving government kickbacks, but they’re also apparently getting cash under the table, according to Shirley.

SOURCE

Nick Shirley reveals the money these fake daycares are getting in Minnesota is tax free

They then pay all their employees and family members in cash so that it’s not reported income

Those Somalians getting paid in cash then sign up for government benefits because their income isn’t being reported because it’s paid in cash

So Somalians get millions in fake daycare money, pay everyone off in cash, then double dip and sign up for government benefits

This is how “81% of the Somalian population is on welfare” and keeps qualifying

Nick Shirley reveals the money these fake daycares are getting in Minnesota is tax free

They then pay all their employees and family members in cash so that it’s not reported income

Those Somalians getting paid in cash then sign up for government benefits because their income… pic.twitter.com/c643VqoO8l

— Wall Street Apes (@WallStreetApes) January 15, 2026

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Cut through the noise, the spin, and the propaganda.

Then there’s the other piece of this snippet from Shirley that basically serves as the final puzzle piece in this entire scheme. When it’s stated that this is how “81% of the Somalian population is on welfare,” all of a sudden things just start coming together. Because, duh, if unreported cash is flowing, Uncle Sam has no idea.

And then that introduces yet another form of potential fraud: welfare fraud.

DEBRIEFING

Corruption in Minnesota is like a snowball that just keeps getting bigger and bigger. And Shirley is there with his shovel, continuing to push that ball forward until it ultimately breaks.

If income is being paid in cash and never reported, the system doesn’t just lose track of taxes, but it also loses the ability to enforce eligibility rules altogether. On paper, workers appear low-income or unemployed; however, in reality, money is still moving.

That’s the bridge to the welfare issue Shirley raises. He isn’t arguing that benefits are handed out randomly; instead, he’s highlighting that the reporting system itself is being bypassed. When income doesn’t exist on paper, benefits remain intact by default.

Whether Shirley’s specific claims are accurate down to the percentage or not, the mechanism he describes is still disturbingly familiar. Unreported cash is more common than most would admit, and it breaks the system every time.

This is why the story isn’t about one daycare, one community, or one program. It’s about how subsidy systems collapse when cash, exemptions, and delayed audits intersect.

NOW YOU KNOW

Cash doesn’t just dodge taxes. It blinds the entire system.