Date: March 13, 2023 Contact: newsroom@ci.irs.gov The U.S. Attorney's Office for the District of Minnesota today announced federal criminal charges against 10 additional defendants for their alleged roles in the fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic. The 10 defendants are charged across four separate indictments and two criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery. As outlined in the charging documents, the defendants participated in a massive scheme to defraud the Federal Child Nutrition Program by obtaining, misappropriating, and laundering millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Rather than feed children, the defendants enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds. 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.
