10 more people charged in $250M federal food program fraud - ABC News

The following defendants are named in the four indictments:

Kawsar Jama , of Eagan, was the principal of Gedo Community Services and Ahlan Childcare Center, Inc., both of which Jama enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between September 2020 through February 2022, Jama falsely claimed to have served approximately 1.46 million meals to needy children at sites in Pelican Rapids, Burnsville, and Minneapolis. In total, Jama submitted $3.7 million in fraudulent claims for Federal Child Nutrition Program funds, some of which she spent on living expenses, real estate, and vehicles, including a Tesla Model X and an Infiniti QX56 SUV. Jama is charged with five counts of wire fraud and four counts of money laundering. 22-CR-226 (NEB/TNL)

Abdikadir Kadiye , of Minneapolis, was the president of Hobyo Health Care Foundation, which he enrolled in the Federal Child Nutrition Program under the sponsorship of Sponsor A. As alleged, throughout 2021, Kadiye falsely claimed to have served at least 445,000 meals to needy children at his sites in Minnetonka, Eden Prairie, and Minneapolis. In total, Kadiye submitted more than $1.1 million in fraudulent claims for Federal Child Nutrition Program funds, some of which he spent on vehicles (including a $105,000 2022 BMW sport utility vehicle), airline tickets, real estate, and $20,000 towards the purchase of a laundromat. Kadiye is charged with conspiracy to commit money laundering and three counts of wire fraud. 22-CR-226 (NEB/TNL)

Abdulkadir Awale , of Bloomington, was the principal of Karmel Coffee, LLC and Sambusa King, Inc., and the CEO of Nawal Restaurant. All three of Awale's businesses were enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between April 2020 through January 2022, Awale falsely claimed that through his businesses he provided food for more than 3.6 million meals to various sites in Minnesota, totaling approximately $11.8 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Awale also paid at least $83,000 in kickbacks to a Feeding Our Future employee. Awale used some of funds to make mortgage payments, cash withdrawals, and purchase vehicles, including a Freightliner Cascadia truck. Awale is charged with conspiracy to commit money laundering, five counts of money laundering, three counts of wire fraud, and four counts of federal programs bribery. 22-CR-226 (NEB/TNL)

Khadra Abdi , of Minneapolis, was the principal of Shafi'I Tutoring & Homework Help Center, which she enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. As alleged, between April 2020 through December 2021, Abdi falsely claimed to serve 1.1 million meals to needy children at her site in Hopkins. In total, Abdi submitted more than $3.4 million in fraudulent claims for Federal Child Nutrition Program funds. As part of the scheme, Abdi also paid at least $17,000 in kickbacks to a Feeding Our Future employee. Abdi used some of funds to make credit card payments, cash withdrawals, and purchase clothing. Abdi is charged with two counts of wire fraud and three counts of federal programs bribery. 22-CR-226 (NEB/TNL)

Ayan Farah Abukar , of Savage, was the founder and executive director of Action for East African People, a non-profit which she enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between October 2020 through 2022, Abukar falsely claimed to be serving as many as 5,000 children a day at her various sites in Bloomington, Minneapolis, Savage, and St. Paul. In total, Abukar fraudulently received approximately $5.7 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Abukar also paid more than $330,000 in kickbacks to a Feeding Our Future employee. Abukar spent millions on real estate, including a 37-acre commercial property in Lakeville and spent hundreds of thousands of dollars towards the purchase of an aircraft to be delivered to Nairobi, Kenya. Abukar is charged with conspiracy to commit wire fraud, conspiracy to commit federal programs bribery, three counts of federal programs bribery, and three counts of money laundering. 23-CR-80

Sade Osman Hashi , of Minneapolis, was the principal of Great Lakes Inc. and Safari Express, entities which he enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between September 2020 through 2022, Hashi falsely claimed to be serving as many as 2,500 meals each day to needy children at his site in the Midtown Global Market in Minneapolis. In total, Hashi fraudulently received approximately $5.7 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Hashi also paid more than $150,000 in kickbacks to a Feeding Our Future employee. Hashi used some of the funds to make cash withdrawals and converted approximately $133,000 to cryptocurrency. Hashi is charged with four counts of wire fraud, conspiracy to commit federal programs bribery, three counts of federal programs bribery, and one count of money laundering. 23-CR-81

Sharon Denise Ross , of Big Lake, was the executive director of House of Refuge Twin Cities, a non-profit which she enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between October 2021 and January 2022, Ross falsely claimed to be serving thousands of children each day at her House of Refuge sites. In total, Ross fraudulently received approximately $2.8 million in fraudulent Federal Child Nutrition Program funds, some of which she spent on real estate, vehicles, and payments to family members. Ross is charged with ten counts of wire fraud and two counts of money laundering. 23-CR-82

Criminal informations:

Mohamed Ali Hussein and Lul Bashir Ali, both of Faribault, enrolled their entities Somali American Faribault Education (SAFE) and Lido Restaurant in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. As alleged, Hussein falsely claimed that the SAFE site in Faribault was serving as many as 2,500 children a day, seven days a week. Lul Ali falsely claimed that the Lido Restaurant site in Faribault was serving as many as 1,600 children a day, seven days a week. In total, Hussein and Lul Ali received more than $5 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Hussein also paid more than $100,000 in kickbacks to a Feeding Our Future employee. Hussein and Lul Ali are charged with conspiracy to commit wire fraud. 23-CR-91

Mulata Yusuf Ali, of Minneapolis, is charged with theft of government funds involving the Federal Child Nutrition Program from December 2020 through January 2022. 23-CR-92

United States Attorney Andrew Luger thanks IRS – Criminal Investigation, the FBI, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these indictments.

Assistant U.S. Attorneys for the District of Minnesota Matthew S. Ebert, Harry M. Jacobs, Chelsea A. Walcker, and Joseph H. Thompson are prosecuting the cases. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

irs

SHAME. SHAME. SHAME. SHAME. SHAME. SHAME. .  .  .

A GOP state senator in MN just recently said that there are no hungry people in MN.

I'm very familiar with Pelican Rapids and it is a very small town about 5 miles from my buddy's lake cabin on Pelican Lake. 

Sentence them to the max and take everything that they own, leave that scum nothing.

The suspects have interesting names and organizations (though innocent until proven guilty), and they are in some terrible 'waters' right now. It will suck to be them if found guilty of crimes. Especially owing all that money back!

This is big big news up here. I've been following Minnesota Public Radio news on the issue. I know people who knew Aimee Bock before she moved down to Minneapolis and they were shocked. The sheer amount of money going through this program I'm shocked it wasn't discovered earlier. Like, didn't anyone complain they weren't actually getting food?

That's a very good point  and question!  Where are the 'regulators'?

The first indictments were last Sept which means the investigation probably started last Spring or late Winter.

Where are the 'regulators'?

Someone was counting beans; otherwise, we wouldn't be reading about it. Can you imagine the backlash if the AG halted the money, and kids went without? I'm just glad they were actually auditing this, and that these folks might actually have to pay the piper. 

Like, didn't anyone complain they weren't actually getting food?

That's one of the problems in a "shoot first, ask later" environment. Dept. of Ag. was throwing money at people, without vetting anything. 

He highlighted an indictment against a woman who claimed to serve 2,560 meals a day to children in Pelican Rapids, a town with a total population of only 2,500 people.

I doubt it was matter of them not feeding those that wanted/needed meals, but more of an issue of pumping the number of meals. Without getting into the details of the program (which I don't know anyway), according to what I can find, 2560 meals a day is more than 3 meals per each child under the age of 18 in Pelican Rapids. Source I see shows roughly 710 kids under age 18.  Assuming all qualified and took meals (and assuming it was designed to provide 3 meals) they could provide 3 meals to all kids, and collect the unused $ on the 450 meals charged for, but never served. That's rough math, based on population data. My gut tells me that they multiplied the number of kids enrolled in K-12 by 3, and claimed that was the number of meals they were serving a day...and only half of the kids were actually taking meals. Wonder what the govt. was paying per meal? Wonder what the actual cost of a meal was? Tons of room for people to take advantage of the situation, while also actually feeding people. 

That's one of the problems in a "shoot first, ask later" environment. Dept. of Ag. was throwing money at people, without vetting anything. 

Just playing devil's advocate here... how many times have we seen programs get bogged down in red tape where nothing actually gets done? Of course in a the unique situation of a pandemic where schools are shut down and people weren't working these methods may have been necessary. That said... unless the program admin was in on it (Bock has been indicted, but plead not guilty) then they were derelict in their oversite duty. 

At a Monday news conference, Luger said six people have pleaded guilty so far, and more information is coming about who organized the scheme.

"Our investigation continues, and we expect more charges in the future," Luger said.

At the center of the plot, the indictments allege, was a Minnesota nonprofit called Feeding Our Future.

Prosecutors said just a fraction of the money went toward feeding kids, with the rest laundered through shell companies and spent on property, luxury cars and travel.

Here is the accusation: At the center of the plot. . . . .  Here's the charge: just a fraction of the money went toward feeding kids. . . . Here's the crime: the rest laundered through shell companies and spent on property, luxury cars and travel.

Now, it's good the government found this out (Bock's former partner 'dropped a dime' on her), and its good the government has informed the public, because, you know, when the children are not being fed. . . they are yet hungry and appropriately hungry. 

That said... unless the program admin was in on it (Bock has been indicted, but plead not guilty) then they were derelict in their oversite duty. 

Oh, I tend to agree with that. We could could run down several rabbit holes here. Under the circumstances, and panic everyone was put in, I lean toward a belief that cutting funding, at the time, would have resulted in egg on the face of multiple people, deserved or not.

I am surprised that this topic has dropped off so soon. This is an interesting case.

I am surprised that this topic has dropped off so soon.

Really? We are getting desensitized to government overspending and corruption related to government money. I'm honestly surprised that the majority of the comments here weren't along the lines of "you're kidding?" s/

I thought the perpetual critics of liberals would have been enjoyed the opportunity to mock the exotic personal names of people and organizations involved in this article and investigation. The old Reagan myth line about the "welfare queen" being a minority receiving government funds while owning a cadillac (or two) parked outside her/his rental property in the 'hood.'

Maybe, there is more hidden about these people and their organizations than has been detailed so far.

Well, I can't speak for everyone, but I personally don't give a damn about someone's name, background, political affiliation, etc. A thief is a thief. I suspect the majority of sensible folks agree, and are tired of everything taking a political spin. 

I agree with you.   But, there are buts.

What is the program? The news release says:

The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.

heavy