MINNEAPOLIS — The alleged criminal fraud case involving Feeding Our Future continues to expand with U.S. Attorney Andy Luger announcing charges against 10 more suspects Monday.
At a news conference, U.S. Attorney for the Minnesota District Andrew Luger told reporters 60 people are now charged in the scheme he says siphoned more than $250 million intended to feed underserved children during the pandemic. Of that, Luger says authorities have seized more than $66 million in property, bank accounts, real estate and vehicles, which alone account for $4 million.
"While the defendants we announce today are new, and some of the tactics they used are specific as to how they executed the scheme, the song of the Feeding Our Future scandal remains the same," Luger asserted. "These defendants, just like the first 50 announced last fall, falsely claimed to be feeding thousands of children a day. They submitted false reimbursement sheets with phoney names of children and often used false invoices to make it appear they were purchasing large amounts of food when they were not. "
Luger said like those previously charged, the new defendants used the money siphoned via the scheme to buy property, real estate, and luxury vehicles, and in one case a defendant made a down-payment on an airplane that was delivered to Kenya. Another allegedly bought a laundromat for the purpose of laundering money.
Three new indictments have been unsealed along with a superseding indictment adding new defendants to a case with some previously charged. The defendants are scheduled to make their initial appearances in court today and Tuesday.
At his press conference, Luger used the example of new defendant Kawsar Jama to illustrate the allegations of brazen fraud. He said Jama claimed to be serving 2,560 meals per day at a site in Pelican Rapids, which has a total population of 2,500, and received $3.7 million from the federal meal programs.
"She forged a phony lease and submitted it with her application to make it look like she was serving at a place in Pelican Rapids," Luger said. "She claimed to be serving everyone living in Pelican Rapids, every day, whether they were children or not, whether they were needy or not."
Jama went on to turn in phony invoices to make it look like she was buying food, but there was no food and no children, according to Luger, who said the defendant even made up fake names of the kids she claimed to serve.
"A friend helped her invent more names as the scheme went on," Luger said. "Jama did not even have a food site."
Three of the 10 new suspects are charged through what's called "information" rather than a grand jury indictment. When a suspect is charged through an information, it generally means they are expected to enter a guilty plea and cooperate with the feds.
Mohamed Ali Hussein and Lul Bashir Ali are charged with one count of conspiracy to commit wire fraud in a detailed information document.
Hussein was president and owner of Somali American Faribault Education, a non-profit located in Faribault referred to as "SAFE." According to the information, Hussein falsely claimed to be serving meals to as many as 2,500 children a day, seven days a week – totaling 1.2 million meals between Feb. and Nov. 2021.
Hussein is also accused of paying more than $100,000 in kickbacks to Abdikerm Eidleh of Feeding Our Future, the nonprofit that sponsored SAFE as a meal site.
Ali was the owner of Lido Restaurant in Faribault, which also operated as a Federal Child Nutrition Program site under the sponsorship of Feeding Our Future. Lido Restaurant also participated as a meal vendor to provide and serve meals at the SAFE site.
According to the information document, Ali falsely claimed Lido Restaurant was serving meals to as many as 1,600 children per day, seven days a week – totaling 700,000 meals.
In all, Hussein and Ali received more than $5 million in Federal Child Nutrition Program funds as part of the fraud scheme.
Another suspect is charged via information, with very few details being released so far. Mulata Ali is charged with theft of government funds between Dec. 2020 and Jan. 2022. The charging document says Ali "willfully and knowingly" did steal and purloin funds from the Federal Child Nutrition Program.
Here is a list of the seven defendants named in the four indictments, along with the allegations against them by the federal government.
- Kawsar Jama, 41, of Eagan (referred to above) 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 Sept. 2020 through Feb. 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.
- Abdikadir Kadiye, 51, 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.
- Abdulkadir Awale, 50, 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 Jan. 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 the 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.
- Khadra Abdi, 41, 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 Dec. 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 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.
- Ayan Farah Abukar, 41, 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 Oct. 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.
- Sade Osman Hashi, 45, 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 Sept. 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.
- Sharon Denise Ross, 52, 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 Oct. 2021 and Jan. 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.
U.S. Attorney Luger made it clear that the investigation into the scheme is not finished, and he fully expects to levy more charges in the case.
News of the Feeding Our Future scheme originally broke in September of 2022, when nearly 50 people were charged in an operation that allegedly defrauded the federal government out of more than $250 million. Feeding Our Future was supposed to feed underserved children during the COVID-19 pandemic.
At the time, U.S. Attorney Andrew Luger called it “a brazen scheme of staggering proportions.”
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