5 Feeding Our Future defendants found guilty, 2 acquitted in sprawling fraud case
BY: DEENA WINTER - JUNE 7, 2024 1:38 PM
A jury found five defendants guilty and two not guilty on Friday in the first trial in the nation’s largest pandemic relief fraud case.
They faced a total of 41 charges — chiefly wire fraud, bribery and money laundering — alleging they claimed to give away 18.8 million meals to needy children from 50 sites across the state. Prosecutors said they fabricated invoices and submitted thousands of phony names of children in order to get $49 million in federal funds.
Said Shafii Farah and Abdiwahab Maalim Aftin were acquitted of all charges against them, while the others had a mix of convictions and acquittals.
Assistant U.S. Attorney Joseph Thompson held a brief press conference after the verdicts were announced, and said “We’re pleased with the verdict. We’re proud of the trial.”
He said the outcome confirms what the feds knew all along: That members of the group falsified documents, lied and claimed to be serving millions of meals, and took advantage of a global pandemic to defraud and steal millions of dollars.
“This conduct was not just criminal, it was depraved and brazen,” Thompson said. “Evidence showed how brazen the scheme was, and how extensive and shameless it was.”
The first day of deliberations was
marked by chaos Monday, as federal prosecutors revealed that someone left $120,000 at the home of a juror Sunday night in an effort to sway her vote. The juror — and another juror who became aware of the bribe attempt — were dismissed, while the remaining jurors were sequestered and the defendants detained for the remainder of deliberations.
The home of one of the defendants, Abdiaziz Shafii Farah, whom prosecutors have described as a ringleader, was
raided Wednesday in connection with the bribe investigation.
The defendants are the first to stand trial out of 70 people charged so far in what’s been dubbed the Feeding Our Future case — named for a nonprofit at the center of the case — and which revolves around a web of people who federal prosecutors say stole some $250 million. Eighteen people have pleaded guilty and one fled the country.
The verdict is sure to affect the 44 others awaiting trial. More could still be charged, especially if the guilty verdicts unleash a wave of cooperation with the investigation, as defendants and suspects seek lighter sentences. However, the two acquittals may give some the confidence to go to trial.
In painstaking detail, government accountants and investigators showed how defendants funneled money through numerous corporations to conceal that they weren’t buying much food, and paid kickbacks to nonprofits that were supposed to be overseeing them. They showed evidence the defendants only
spent a few million dollars on food, and spent the rest on pricey vehicles, luxury vacations to the Maldives and the Middle East and new homes, including a suburban lakefront mansion.
This case revolved around a small halal restaurant and market in a Shakopee strip mall called Empire Cuisine & Market. It was incorporated by two of the defendants in April 2020, and soon after began claiming to be feeding kids at a couple dozen distribution sites. The restaurant received nearly $30 million in federal funds, and spent about $3 million of it on food — some of which appeared to be for the restaurant, according to an FBI forensic accountant.
Their defense attorneys argued they actually did give away food — showing photos and videos showing some food being stored, packaged and distributed — and were allowed to make a profit. They blamed the state Department of Education that ran the program and two nonprofits at the center of the case — Feeding Our Future and Partners in Nutrition — for not giving them enough guidance as they navigated a complicated, ever-changing array of federal waivers.
The U.S. Department of Agriculture loosened its rules during the COVID-19 pandemic to make it easier to get food to children as schools and daycares shuttered. Prosecutors say the program was flooded with reimbursement requests from the defendants and others charged in Minnesota, even though very little food was actually served.
The defendants
Abdiaziz Shafii Farah of Savage and Mohamed Jama Ismail of Savage incorporated Empire Cuisine & Market on April 1, 2020, got permits to convert it into a grocery store and 18 days later told their sponsoring nonprofit, Partners in Nutrition, they were ready to distribute 250 meals at the Samaha Family Center in Shakopee. They opened a bank account for the company on May 12, 2020, and began filing claims seeking reimbursement from the government for meals.
Farah was found guilty on all but one count. He was convicted of six counts of wire fraud; one count of conspiracy to commit wire fraud; conspiracy to commit federal programs bribery; two counts of federal programs bribery; 11 counts of money laundering; making false statements in a passport application; and one count of conspiracy to commit money laundering. He was acquitted of one count of wire fraud.
Empire Cuisine & Market and other affiliated sites received over $28 million in fraudulent federal child nutrition funds, prosecutors said.
Prosecutors
showed jurors WhatsApp messages between defendant Abdiaziz Farah and another person indicted in the case talking about how to divide up the money they made, coming up with names of children served, and dealing with the state and nonprofit that was supposed to be monitoring them — as opposed to the logistics of getting huge amounts of food to distribution sites.
“The next multi-millionaires will be you and me,” Abdiaziz Farah wrote in one message.
He went on to write a $1 million check to buy a lakeside Prior Lake home.
Mohamed Jama Ismail of Savage was a co-owner of Empire Cuisine & Market, and prosecutors say he pocketed over $2 million in the scheme, buying a GMC pickup, two trucks for $167,000, and spending $137,000 to pay off the mortgage on the house he’d bought six years earlier.
Ismail was convicted of one count of conspiracy to commit wire fraud and acquitted of another count of conspiracy to commit wire fraud; and convicted of money laundering and conspiracy to money launder.
His lawyer, Patrick Cotter, portrayed him as a hard-working immigrant who did not purposely defraud the government. Cotter said Ismail nearly died of hepatitis and hunger before making it to America, where realized his dream of opening an East African restaurant.
After the FBI seized Ismail’s passport during a January 2022 raid of his home, he applied for a new one months later, claiming he’d lost his. Three months later, he was arrested in a jetway about to board a one-way flight from Minneapolis to Kenya, where his wife and five children lived.