Date: Feb. 5, 2024 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 two separate indictments and one criminal information with charges of conspiracy, wire fraud, money laundering, and bribery. As outlined in the charging documents, the defendants participated in a multi-million-dollar 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 two indictments: Ikram Yusuf Mohamed, of Minneapolis, worked as a consultant for Feeding Our Future. Ikram Mohamed opened several food sites that were enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. To conceal her involvement, she put the sites and entities in the name of family members, including her husband, mother, and siblings. Ikram Mohamed also solicited and received kickbacks from individuals and companies involved in the program. Ikram Mohamed registered IM Consultation LLC with the Minnesota Secretary of State on or about March 10, 2021. She used IM Consultation to receive and launder kickback payments and fraud proceeds. Ikram Mohamed is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. 24-CR-15 (ECT/DJF) Shakur Abdinur Abdisalam, Ikram Mohamed’s husband, created a company called Inspiring Youth & Out Reach LLC (“Inspiring Youth”), which he enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. Inspiring Youth purported to run a food site in Minneapolis. Between February and November 2021, the company claimed to have served more than 1 million meals. Based on these fraudulent claims, Inspiring Youth received more than $1.5 million in Federal Child Nutrition Program funds. As part of the scheme, Abdisalam also paid a $21,000 kickback to his wife’s entity, IM Consultation. Abdisalam is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and conspiracy to commit money laundering. 24-CR-15 (ECT/DJF) Aisha Hassan Hussein, Ikram Mohamed’s sister, was the principal of United Youth of MPLS LLC (“United Youth”). Hussein enrolled her company in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and purported to operate two sites in Minneapolis. As alleged, from December 2020 through November 2021, Hussein and her co-conspirators falsely claimed to have served more than 1.3 million meals to children at the United Youth sites, totaling approximately $2.2 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Hussein also paid a $166,000 kickback to Ikram Mohamed’s IM Consultation. Hussein is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and conspiracy to commit money laundering. 24-CR-15 (ECT/DJF) Fadumo Mohamed Yusuf, Ikram Mohamed’s mother, ran Active Mind’s Youth LLC (“Active Minds”), another company that enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. Active Minds purported to operate a food site located on East Lake Street in Minneapolis. Between February and June 2021, Active Minds fraudulently claimed to have served more than 500,000 meals and received more than $1 million in Federal Child Nutrition Program funds. As part of the scheme, Yusuf also paid a $38,500 kickback to Ikram Mohamed’s IM Consultation. Yusuf is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and conspiracy to commit money laundering. 24-CR-15 (ECT/DJF) Sahra Sharif Osman, of Savage, was the principal of Youth International Club LLC (“Youth International”). Youth International operated two Federal Child Nutrition Program sites under the sponsorship of Feeding Our Future. The Youth International food sites were in Hopkins and Edina, both purportedly serving meals out of community rooms in townhome complexes. Between March and November 2021, Youth International fraudulently claimed to have served nearly 700,000 meals and received more than $1.4 million in Federal Child Nutrition Program funds. As part of the scheme, Osman also paid a $7,500 kickback to Ikram Mohamed’s IM Consultation. Osman is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and conspiracy to commit money laundering. 24-CR-15 (ECT/DJF) Suleman Yusuf Mohamed, Ikram Mohamed’s brother, was the owner of Star Distribution LLC, which purported to be a food distribution business in Minneapolis. Star Distribution purported to be in the business of providing meals to be served at the Federal Child Nutrition Program site run by Suleman Mohamed’s family members and co-defendants. As alleged, from February 2021 through April 2022, Star Distribution received approximately $10 million in Federal Child Nutrition Program funds, including more than $4.9 million from Feeding Our Future, $1.6 million from United Youth of Mpls, and $1 million from Inspiring Youth & Outreach. As part of the scheme, Suleman Mohamed also paid more than $330,000 in kickbacks to Ikram Mohamed’s IM Consultation. Suleman Mohamed is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. 24-CR-15 (ECT/DJF) Gandi Yusuf Mohamed, Ikram Mohamed’s brother, was the owner of GAK Properties LLC and GIF Properties LLC, companies used to receive and launder the proceeds of the fraud scheme. Gandi Mohamed also submitted fraudulent meal counts and claims on behalf of his family’s companies. As alleged, between March 2021 and July 2022, Gandi Mohamed fraudulently received and laundered more than $1.1 million in Federal Child Nutrition Program funds. Gandi Mohamed is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. 24-CR-15 (ECT/DJF) Said Ereg, and was the owner and operator of Evergreen Grocery and Deli, a for-profit grocery and deli in south Minneapolis. Ereg’s wife, Najmo Ahmed, worked for Evergreen Grocery and Deli. Evergreen Grocery and Deli was enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. As alleged, April 2020 and April 2021, Evergreen Grocery and Deli fraudulently claimed to have served over 1.4 million meals to children and received more than $4.2 million in payments from Feeding Our Future for purportedly serving meals. Ereg and Ahmed transferred most of the money to fund their own lifestyles, including to make purchases from Burberry, Louis Vuitton, and Canada Goose. Ereg and Ahmed also transferred more than $2.5 million to foreign accounts controlled by foreign companies. As part of the scheme, Ereg and Ahmed also paid more than $100,000 in kickbacks to Abdikerm Eidleh, a Feeding Our Future employee. Ereg and Ahmed are charged with conspiracy to commit wire fraud, wire fraud, and money laundering. 24-CR-13 (PJS/DTS) Criminal informations: Hoda Ali Abdi, was the owner of Alif Halal LLC (“Alif Halal”), a grocery store located in Burnsville, which she enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, Abdi fraudulently claimed to have provided approximately $3 million worth of food for children through other co-conspirator’s sites. Abdi also claimed, falsely, to have served more than 242,000 meals to children at her Burnsville site and received approximately $243,268 in Federal Child Nutrition Program funds. Abdi is charged with conspiracy to commit wire fraud. 24-CR-24 (JWB) United States Attorney Andrew Luger thanks IRS – Criminal Investigations, the FBI, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these charges. Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Chelsea A. Walcker are prosecuting the cases. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets. These charges are merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
