Source: Office of United States Attorneys
MINNEAPOLIS – A Savage woman pleaded guilty for her role in the fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
According to court documents, Ayan Farah Abukar, 43, and her co-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.
According to court documents, Abukarwas 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. 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 to defraud, 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 to purchase an aircraft in Nairobi, Kenya.
Abukar pleaded guilty today in U.S District Court before Chief Judge Schiltz to one count of conspiracy to commit wire fraud. A sentencing hearing will be scheduled at a later date.
The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.