5 Minnesota Residents Convicted in $250 Million COVID-19 Relief Fraud Scheme

A gavel in a file photo. Adrian Wyld/The Canadian Press

Five Minnesota residents were convicted in a fraud scheme where they misused $250 million in program funds meant to cover the expense of serving meals to children during the pandemic, the Department of Justice (DOJ) said on Friday.

A federal jury found Abdiaziz Shafii Farah, 35, Mohamed Jama Ismail, 51, Abdimajid Mohamed Nur, 23, Mukhtar Mohamed Shariff, 33, and Hayat Mohamed Nur, 27, guilty for their roles in the Feeding Our Future Fraud scheme after a six-week trial, according to the DOJ.

U.S. Attorney Andrew Luger said the latest convictions bring the total number of individuals held accountable for their roles in “this egregious conspiracy to steal millions of taxpayer dollars” to 23 so far.

“I am extraordinarily proud of the prosecution team and our law enforcement partners who have spent years investigating this highly complex and widespread fraud scheme,” Mr. Luger stated.

The DOJ said the five defendants misappropriated and laundered millions of dollars in funds intended as reimbursements for the cost of providing food to underserved children during the COVID-19 pandemic.

They “exploited changes” in the program and submitted false documents, such as fraudulent meal count sheets, false invoices, and fake attendance rosters containing the names and ages of the children receiving meals each day.

The defendants were convicted of various charges, including conspiracy, wire fraud, federal programs bribery, money laundering, and making false statements. The date for the sentencing hearing has not yet been determined, according to the DOJ.

The five convicted defendants were among 70 defendants that have been charged across 14 indictments and six criminal informations. The DOJ said that 18 defendants have pleaded guilty.

“This investigation is not over, and today’s verdict highlights the fact that a large-scale fraud of this scope and nature will not be ignored, and those who engage in fraud schemes like this will not evade justice,” said Jason Bushey, Acting Special Agent in Charge in the IRS Criminal Investigation, Chicago Field office.

DOJ Recovered $1.4 Billion in Stolen Funds

A recent report by the DOJ revealed that the Biden administration has charged over 3,400 people with federal crimes and recovered more than $1.4 billion in stolen COVID-19 relief funds during the last three years.

The report, published on April 9 by the DOJ’s COVID-19 Fraud Enforcement Task Force (CFETF), stated the force has filed more than 400 civil lawsuits since it was established in 2021, resulting in court judgments and settlements of over $100 million.

Touting its progress in the latest report, the DOJ said the CFETF was successful in tracking down and reclaiming the stolen funds after setting up a “comprehensive program” to identify fraud, recover assets, and hold fraudsters accountable.

That program included the creation of five prosecutorial COVID-19 fraud enforcement “strike forces” based in California, Colorado, Maryland, New Jersey, and Florida. All were provided with dedicated funding to pursue pandemic fraud, according to the DOJ.

Katabella Roberts contributed to this report.