In connection with their alleged involvement in a $250 million fraud scheme that took advantage of a federally sponsored child nutrition programme during the COVID-19 pandemic, the Department of Justice today filed federal criminal charges against 47 defendants.
U.S. Attorney Announces Federal Charges Against 47 Defendants in $250 Million Feeding Our Future Fraud Scheme
Attorney General Merrick B. "These indictments, alleging the largest pandemic relief fraud scheme filed to date, reflect the Department of Justice's continuous commitment to combatting pandemic fraud and holding individuals accountable," Garland said.for it accountable." "The Jail Department will continue to bring to justice those who have abused the pandemic for personal benefit and stolen from American taxpayers in conjunction with agencies across government."
According to FBI Director Christopher Wray, today's indictments "reveal an appalling effort to steal public funds intended to care for children in need in what amounts to the greatest pandemic relief fraud operation yet." In the middle of the COVID-19 outbreak, the defendants "went to tremendous measures to take advantage of a programme intended to feed underprivileged children in Minnesota, fraudulently diverting millions of dollars intended for the programme for their own financial gain. These accusations serve as a warning that the FBI and our law enforcement allies are on high alert and will resolutely go after anyone trying to gain an unfair financial advantage.
According to the United States Attorney for the District of Minnesota, Andrew M.This was a flagrant conspiracy of astonishing proportions, said Luger. These defendants took advantage of a programme established during the COVID-19 pandemic to provide wholesome food to poor children.Instead, they put their personal greed first, taking more than $250,000,000 in government cash to spend on expensive vehicles, homes, jewellery, and overseas seaside vacation property. I applaud the diligent work of the competent detectives and prosecutors who exposed the fabrications, deceit, and mounds of phoney records in order to resolve this complicated case.
The 47 defendants are accused of conspiracy, wire fraud, money laundering, and bribery in six different indictments and three criminal informations.
The defendants created and carried out a significant plot to cheat the Federal Child Nutrition Program, as stated in the criminal documents. Millions of dollars in programme monies that were meant to cover the expense of feeding kids were accessed, taken, and laundered by the defendants. The defendants took advantage of modifications made to the programme to guarantee that underprivileged kids received appropriate nutrition during the COVID-19 outbreak. The defendants fraudulently misappropriated millions of dollars from the Federal Child Nutrition Program in order to benefit themselves rather than feed children.
Designed to give children in need free meals, the Federal Child Nutrition Program is a nationally financed initiative run by the U.S. Department of Agriculture (USDA). The programme is managed across the country by the USDA's Food and Nutrition Service, which distributes federal funding to state governments. The Federal Child Nutrition Program is managed and administered in Minnesota by the Minnesota Department of Education (MDE). "Sites" provide meals that are paid for by the Federal Child Nutrition Program. A legitimate sponsoring organisation must support each site taking part in the programme. For each site, sponsors are required to submit an application to MDE. Additionally, sponsors are in charge of keeping an eye on each of their sites and creating reimbursement requests for each of them.
The USDA then gives MDE federal reimbursement money based on the number of meals. MDE offers those monies to the sponsoring organisation, which then reimburses the sites it supports. As an administrative charge, the sponsoring organisation keeps 10 to 15 percent of the cash.
The USDA eliminated some of the prerequisites for signing up for the Federal Child Nutrition Program during the COVID-19 pandemic. In addition to other things, the USDA permitted off-site food delivery to kids not involved in educational programmes and for-profit businesses to take part in the programme.
Feeding Our Future, a nonprofit that participated as a sponsor in the Federal Child Nutrition Program, was founded and directed by Aimee Bock. The accusations accuse Bock of supervising a major fraud scheme that was carried out via websites that were supported by Feeding Our Future. Federal funding received and disbursed by Feeding Our Future increased from $3.4 million in 2019 to over $200 million in 2021.
Employees of Feeding Our Future solicited people and organisations to launch Federal Child Nutrition Program locations across the state of Minnesota as part of the alleged fraud. These websites, developed and run by the defendants and others, falsely stated that within days or weeks of their creation, they would be providing meals to thousands of children every day. To sign up for the scheme as Federal Child Nutrition Program locations, the defendants established many shell firms. For the purpose of receiving and laundering the revenues of their fraudulent scheme, the defendants also established shell corporations.
The defendants allegedly fabricated and submitted fake papers in order to carry out the plan. They provided false meal count sheets that claimed to show the number of kids and the number of meals supplied at each location. The defendants provided fictitious invoices that were supposed to serve as proof of the purchase of food for children at the locations. The defendants allegedly provided fictitious attendance lists that claimed to include the names and ages of the kids who regularly received meals at the sites. These lists were made up using fictitious names. One roster, for instance, was made using the names found on the website www.listofrandomnames.com. Other defendants utilised an Excel formula to randomly enter a child's age between seven and seventeen because the programme only paid out for meals served to children.
Feeding Our Future filed the false claims to MDE while being aware that they were false, and afterward distributed the money obtained fraudulently from the Federal Child Nutrition Program to the participants in the scam.
Feeding Our Future got over $18 million in unauthorised administrative fees as payment for sponsoring these sites' deceptive participation in the programme. Employees of Feeding Our Future sought and accepted bribes and kickbacks from people and businesses it sponsored, in addition to the administrative fees. Many of these bribes were made in cash or were presented to shell firms that were made by workers of Feeding Our Future as "consulting fees" in order to appear legitimate.
Bock and Feeding Our Future provided false promises that they were monitoring the sites under their sponsorship and that the sites were providing the meals as claimed when MDE tried to undertake the necessary oversight about the number of locations and the amount of claims being filed. When MDE staff pressed Bock for further information, Bock alleged that MDE was unfairly examining the sites of Feeding Our Future and engaging in discrimination. When MDE rejected Feeding Our Future's site applications, Bock and the organisation launched a lawsuit, charging MDE with violating the Minnesota Human Rights Act by rejecting the site applications on the basis of discrimination.
A total of more than 250 locations were opened by Feeding Our Future throughout the state of Minnesota, and more than $240 million in Federal Child Nutrition Program monies were unlawfully obtained and distributed. The defendants bought luxury cars, homes and businesses in Minnesota, as well as real estate in Ohio and Kentucky, as well as properties in Kenya and Turkey, with the money they received through their fraudulent operation. They also used it to pay for their worldwide trips.
In a moment of national emergency, taking advantage of a government initiative to feed children is the height of greed, according to Special Agent in Charge Justin Campbell of the IRS Criminal Investigation, Chicago Field Office. The accused defendants in this case allegedly made the decision to profit themselves at the expense of children. They decided to rob from the future rather than feed it. To hold these individuals accountable, IRS - Criminal Investigation is glad to work with other law enforcement agencies.
U.S. Attorney Announces Federal Charges Against 47 Defendants in $250 Million Feeding Our Future Fraud Scheme
In the case of United States v. Aimee Marie Bock, et al., 22-CR-223 (NEB/TNL), 14 defendants are accused of participating in a fraud scheme involving the Federal Child Nutrition Program and are charged with conspiracy to commit wire fraud, wire fraud, conspiracy to bribe officials of federal programmes, bribery of officials of federal programmes, conspiracy to commit money laundering, and money laundering. Under the sponsorship of Feeding Our Future, Safari Restaurant signed up for the Federal Child Nutrition Program in April 2020.
The proprietors of Safari Restaurant and their accomplices established numerous shell businesses, in addition to opening new locations all across the state of Minnesota. The defendants stated that they provided millions of meals during the scam scheme. The defendants collected more than $32 million in Federal Child Nutrition Program monies as a result of their false representations, which they then stole for their own advantage, paying for things like vacation, real estate, and vehicles.
Eight defendants are accused of conspiring, committing wire fraud, bribing officials to advance federal programmes, and money laundering in the case United States v. Abdiaziz Shafii Farah, et al., 22-CR-124 (NEB/TNL). Under the sponsorship of Feeding Our Future and Sponsor A, Empire Cuisine and Market LLC enrolled in the Federal Child Nutrition Program in April 2020. Along with dozens of phoney businesses, the owners of Empire Cuisine and Market LLC and their accomplices opened more locations around the state of Minnesota.
The defendants stated that they provided millions of meals during the scam scheme. The defendants obtained more than $40 million from the Federal Child Nutrition Program as a result of their false representations, money that they then plundered for their own profit, paying for things like vehicles, travel, homes, and property in Kenya.
Eight defendants are accused of conspiring, committing wire fraud, and engaging in money laundering in the case United States v. Qamar Ahmed Hassan, et al., 22-CR-224 (NEB/TNL). Under the sponsorship of Feeding Our Future, S & S Catering Inc. joined in the Federal Child Nutrition Program in August 2020. The proprietor of S & S Catering built locations throughout the Twin Cities with the help of other conspirators, who asserted that they had served millions of meals. The defendants collected more over $18 million in Federal Child Nutrition Program monies based on their false statements, which they then stole for their own advantage, paying for things like cars and real estate.
In the case of United States v. Haji Osman Salad, et al., 22-CR-226 (NEB/TNL), five defendants are accused of participating in a fraud scheme involving the Federal Child Nutrition Program and are charged with wire fraud, conspiracy to commit money laundering, and money laundering. Under the sponsorship of Feeding Our Future and Sponsor A, the owner of Haji's Kitchen LLC and other conspirators enrolled in the Federal Child Nutrition Program. The conspirators established numerous shell corporations and locations throughout the state of Minnesota. The defendants stated that they provided millions of meals during the scam scheme. The defendants obtained more than $25 million from the Federal Child Nutrition Program based on their false claims, which they then stole for their own advantage, paying for things like cars, houses, and other items.
In the case known as United States v. Liban Yasin Alishire, et al., 22-CR-222 (NEB/TML), three defendants are accused of participating in a fraud scheme involving the Federal Child Nutrition Program by being charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programmes, bribery of federal programmes, and money laundering.
The proprietor of Community Enhancement Services Inc. and other accomplices set up numerous sites and fictitious businesses in Minneapolis' JigJiga Business Center. The defendants asserted that they served hundreds of thousands of meals during the course of the fraud scheme. The defendants collected more than $1.6 million in Federal Child Nutrition Program monies as a result of their false representations, which they then stole for their own advantage, paying for things like cars, homes, and beachfront property in Kenya.
In the case of United States v. Sharmake Jama, et al., 22-CR-225 (NEB/TNL), six defendants are accused of participating in the Federal Child Nutrition Program fraud scheme and of wire fraud, federal programme bribery, money laundering, and conspiracy to commit money laundering. Under the sponsorship of Feeding Our Future, Rochester, Minnesota-based Brava Restaurant & Café LLC joined in the Federal Child Nutrition Program in September 2020.
The owners of Brava Restaurant & Café and other defendants asserted that Brava Restaurant & Café served millions of meals while falsely claiming to be under contract with Rochester Public Schools. The defendants obtained over $4.3 million from the Federal Child Nutrition Program as a result of their false representations, money that they then plundered for their own profit, spending it on things like cars, homes, and property on Turkey's Mediterranean coast.
The indictment in United States v. Aimee Marie Bock, et al. names the following defendants:
Aimee Marie Bock, 41, of Apple Valley, Minnesota, is accused of conspiring to commit wire fraud, committing wire fraud, and conspiring to bribe government programme officials. Bock founded Feeding Our Future and served as its executive director. Bock managed the $240 million fraud plan that was carried out through organisations that were sponsored by Feeding Our Future.
Abdikerm Abdelahi Eidleh of Burnsville, Minnesota is accused of conspiring to commit wire fraud, wire fraud, conspiring to bribe officials of federal agencies, bribing officials of federal agencies, conspiring to launder money, and money laundering. Eidleh was a Feeding Our Future employee who sought and accepted bribes and kickbacks from people and organisations it sponsored. Additionally, Eidleh developed his own scam websites.
Salim Ahmed Said, 33, of Plymouth, Minnesota, is accused of conspiring to conduct wire fraud, wire fraud, conspiring to bribe officials of federal agencies, bribing officials of federal agencies, conspiring to launder money, and money laundering. Said was the proprietor and manager of the Safari Restaurant, a location that received over $16 million in fictitious monies from the Federal Child Nutrition Program.
Abdulkadir Nur Salah, of Columbia Heights, Minnesota is accused of conspiring to commit wire fraud, wire fraud, conspiring to bribe officials of federal agencies, bribing officials of federal agencies, conspiring to launder money, and money laundering. Safari Restaurant, which obtained more than $16 million in fraudulent Federal Child Nutrition Program funding, was owned and run by Abdulkadir Salah.
Sharif, Ahmed Omar-Hashim, 39, of Minneapolis, Minnesota, is accused of conspiring to conduct wire fraud, wire fraud, conspiring to bribe officials of federal agencies, bribing officials of federal agencies, conspiring to launder money, and money laundering. Olive Management Inc., a business founded by Omar-Hashim, was the recipient of about $5 million in illegal Federal Child Nutrition Program funding.
Charges against Minneapolis, Minnesota resident Abdi Nur Salah, 34, include conspiracy to commit wire fraud, wire fraud, money laundering conspiracy, and money laundering. Stigma-Free International, a non-profit organisation with locations around Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul, was established by Abdi Salah.
Abdihakim Ali Ahmed, 36, of Apple Valley, Minnesota, is accused of conspiring to conduct wire fraud, wire fraud, conspiring to bribe officials in connection with federal programmes, bribing officials in connection with federal programmes, conspiring to launder money, and money laundering. A website called ASA Limited LLC, founded by Abdihakim Ahmed, was the recipient of about $5 million in stolen Federal Child Nutrition Program funding.
Ahmed Mohamed Artan of Minneapolis, Minnesota is accused of conspiring to commit wire fraud, wire fraud, conspiring to bribe federal programme officials, conspiring to launder money, and conspiring to launder money. Stigma-Free International, a non-profit organisation with locations around Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul, was established by Artan.
Abdikadir Ainanshe Mohamud, 30, of Fridley, Minnesota, is accused of conspiring to conduct wire fraud, wire fraud, conspiring to bribe officials in connection with federal programmes, bribing officials in connection with federal programmes, conspiring to launder money, and money laundering. The Stigma-Free Willmar website was run by Mohamud. Approximately 1.6 million meals were allegedly served at this location, which also claimed to have collected more than $4 million in stolen Federal Child Nutrition Program funds.
Abdinasir Mahamed Abshir, 30, of Minneapolis, Minnesota, is accused of conspiring to conduct wire fraud, wire fraud, conspiring to bribe officials in connection with federal programmes, bribing officials in connection with federal programmes, conspiring to launder money, and money laundering. The Stigma-Free Mankato site was run by Abdinasir Abshir. More than 1.6 million meals, allegedly, were served at this location, and it claimed to have collected $5 million in stolen Federal Child Nutrition Program funds.
Charges include conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering against Asad Mohamed Abshir, 32, of Mankato, Minnesota. The Stigma-Free Mankato webpage was run by Asad Abshir. More than 1.6 million meals, allegedly, were served at this location, and it claimed to have collected $5 million in stolen Federal Child Nutrition Program funds.
Charges against Ahmed Abdullahi Ghedi, 32, of Minneapolis, Minnesota, include conspiracy to conduct wire fraud, wire fraud, bribery of federal officials, government programmes, and money laundering. A false Federal Child Nutrition Program grant of almost $5 million was given to Ghedi's creation, ASA Limited LLC.
The charges against Columbus, Ohio resident Abdirahman Mohamud Ahmed, 54, include money laundering and conspiracy to commit money laundering. Owner and manager of the Safari Restaurant, which obtained over $16 million in illegal Federal Child Nutrition Program funding, was Abdirahman Ahmed.
The indictment in United States v. Abdiaziz Shafii Farah, et al. names the following defendants:
Abdiaziz Shafii Farah, 33, of Savage, Minnesota, is accused of conspiring to commit wire fraud, wire fraud, conspiring to bribe officials in government-run programmes, bribing officials in government-run programmes, conspiring to launder money, and making false representations on a passport application. Empire Cuisine and Market LLC, a for-profit restaurant owned and run by Abdiaziz Farah, took part in the plan as a site, a vendor for other sites, and an entity to launder illicit proceeds. Fraudulent Federal Child Nutrition Program funding totaling more than $28 million were obtained by Empire Cuisine and Market and other related websites.
Charges against 49-year-old Mohamed Jama Ismail of Savage, Minnesota include conspiracy to commit wire fraud, wire fraud, money laundering conspiracy, and money laundering. Ismail was the owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that took part in the scam as a site, a supplier for other sites, and a vehicle to smuggle money. Fraudulent Federal Child Nutrition Program funding totaling more than $28 million were obtained by Empire Cuisine and Market and other related websites
Charges against Mahad Ibrahim, 46, of Lewis Center, Ohio include conspiracy to commit wire fraud, wire fraud, money laundering conspiracy, and money laundering. Ibrahim served as the head of the Minnesota non-profit organisation ThinkTechAct Foundation, which also went by the name Mind Foundry Learning Foundation. Numerous sites in Minnesota were developed by ThinkTechAct and Mind Foundry, including those in Minneapolis, St.The cities of Circle Pines, Willmar, Bloomington, Burnsville, Faribault, Owatonna, and Shakopee.More than $18 million in false Federal Child Nutrition Program monies were given to ThinkTechAct.
Charges against 21-year-old Shakopee, Minnesota resident Abdimajid Mohamed Nur include conspiracy to commit wire fraud, wire fraud, money laundering conspiracy, and money laundering. To receive and swindle money from Empire Cuisine and Market, ThinkTechAct, and other participants in the scheme, Abdimajid Nur established Nur Consulting LLC.
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Said Shafii Farah, 40, of Minneapolis, Minnesota, is accused of conspiring to commit wire fraud, wire fraud, conspiring to bribe officials in connection with federal programmes, bribing officials in connection with federal programmes, conspiring to launder money, and money laundering. The proprietor of Bushra Wholesalers LLC, a front firm used to conceal illegal Federal Child Nutrition Program funding, was Said Farah, Abdiaziz Farah's brother.
Charges against 32-year-old Minneapolis, Minnesota resident Abdiwahab Maalim Aftin include money laundering, conspiracy to commit wire fraud, and money laundering. Aftin was a shareholder in Bushra Wholesalers LLC, a front company designed to conceal ill-gotten gains from the Federal Child Nutrition Program.
Mukhtar Mohamed Shariff, 31, of Bloomington, Minnesota, is accused of conspiring to conduct wire fraud, wire fraud, conspiring to bribe officials in connection with federal programmes, bribing officials in connection with federal programmes, conspiring to launder money, and money laundering. Shariff was the CEO of Afrique Hospitality Group, a front firm used to swindle and launder money from the Federal Child Nutrition Program.
Charges against Hayat Mohamed Nur, 25, of Eden Prairie, Minnesota, include money laundering, conspiracy to commit wire fraud, and wire fraud. Hayat Nur, the sister of Abdimajid Nur, took part in the plan by producing and submitting phoney attendance records, invoices, and meal count sheets.
For their cooperation and expert investigative work in bringing these indictments, United States Attorney Andrew Luger praised the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service.
The prosecution in this matter is being handled by Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab for the District of Minnesota. Craig Baune, an assistant US attorney, is in charge of the asset forfeiture and seizure process.
An accusation is all that an indictment is. Until they are proven guilty beyond a reasonable doubt in court, all defendants are deemed innocent.
