Minnesota’s largest COVID-era fraud scheme continues to send shockwaves across the country as court evidence reveals how millions meant to feed hungry children were instead spent on luxury vacations, high-end cars, and overseas money transfers.
The sprawling scandal centers on Feeding Our Future, a federally funded nonprofit that claimed to provide meals to vulnerable children during the pandemic. According to the Department of Justice, not a single meal was served.
Federal prosecutors say more than $250 million in taxpayer funds were stolen between April 2020 and January 2022, making it one of the largest public fraud schemes in U.S. history. Only about $75 million has been recovered so far.
At least 78 individuals have been charged, with 72 identified as being of Somali descent, according to court filings. The cases expose systemic failures in oversight at both the state and federal levels.
Evidence presented in court and reviewed by CBS shows defendants flaunting stolen funds on private villas in the Maldives, first-class international flights, luxury vehicles, and lakefront real estate in Minnesota.
One defendant, Abdimajid Mohamed Nur, 24, has already been sentenced to 10 years in prison and ordered to repay $48 million. Prosecutors described him as a key player in a network that funneled public funds into personal accounts.
Another ringleader, Abdiaziz Shafii Farah, 36, received a 28-year prison sentence last month. The judge overseeing the case described his actions as driven by “pure, unmitigated greed.”
Farah used his restaurant, Empire Cuisine & Market in Shakopee, as a front to bill the state for meals that were never produced. Records show he alone claimed to have served 18 million meals, billing nearly $47 million.
Court documents reveal that Farah transferred over $1 million to Chinese banks and sent funds to East Africa. One text message referenced wiring money to Mogadishu’s Bakara Market, a location historically linked to extremist activity.
While federal prosecutors say they have not confirmed terror financing, the Treasury Department under President Trump has opened parallel investigations into whether stolen funds were routed to foreign criminal or extremist networks.
Treasury Secretary Scott Bessent confirmed that “a significant amount of money has gone overseas” and vowed aggressive asset recovery efforts under the Trump administration.
The Feeding Our Future case is not isolated. Federal prosecutors say it is part of a broader web of fraud tied to Minnesota social service programs, including housing stabilization and autism services.
Acting U.S. Attorney Joseph Thompson stated that these schemes have “stolen billions in taxpayer money” and warned that more arrests are coming.