Fraud

A federal jury in the Middle District of Florida convicted a Virginia man today for his role in a scheme to defraud Medicare of over $1 million in prescription drug benefits.

According to court documents and evidence presented at trial, Ronald A. Beasley II, 33, of Portsmouth, was the pharmacist in charge at NH Pharma, a pharmacy located in Lake Mary, Florida. Through NH Pharma, Beasley and his co-conspirators billed Medicare for expensive compound drug creams that they never actually purchased or dispensed, and instead provided Medicare patients an inexpensive compound drug cream not covered by Medicare. Inventory records showed that NH Pharma did not buy enough of the expensive prescription drugs to fill all the prescriptions NH Pharma billed to Medicare. In total, Beasley and his co-conspirators received more than $1 million in fraudulent proceeds from Medicare.

Beasley was convicted of conspiracy to commit health care fraud and three counts of health care fraud. He is scheduled to be sentenced on April 25 and faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge David Walker of the FBI Tampa Field Office; and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Miami Regional Office made the announcement.

The FBI and HHS-OIG investigated the case.

Trial Attorneys Reginald Cuyler Jr. and Darren C. Halverson of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

Source-FBI

NEWARK, N.J. – A Union County man who previously served as a staff member in the New Jersey Senate today admitted his role in a conspiracy to falsely inflate the invoices that a political consultant submitted to various campaigns, political action committees, and IRS 501(c)(4) organizations, U.S. Attorney Philip R. Sellinger announced.  

Antonio Teixeira, 43, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion. 

According to documents filed in this case and statements made in court:

From 2014 to 2018, Teixeira conspired with Sean Caddle, and Caddle’s political consulting firms, to defraud various campaigns, political action committees, and 501(c)(4) organizations of $107,800. Teixeira then failed to report this illicit income on tax forms that he filed with the IRS during those same years. 

Caddle was hired by a former New Jersey state senator to create the PACs and 501(c)(4)s so that they could raise and spend money to advocate on a variety of issues, including supporting particular candidates in local races around New Jersey. Teixeira served as the senator’s chief of staff and wielded influence over the consultants that the campaigns and organizations hired and the budgets that each of these organizations would receive. 

Teixeira and Caddle conspired to falsely inflate the invoices that Caddle’s consulting firms submitted to the campaigns, PACs and 501(c)(4)s with phony campaign-related expenditures. Caddle and Teixeira were fraudulently padding the invoices because they agreed to split the difference between Caddle’s actual campaign expenditures and the overage charged to the organizations. Caddle paid a portion of Teixeira’s share to him in cash and funneled the remainder to Teixeira via checks made to out to Teixeira’s relatives in order to conceal that campaign money was being kicked back to Teixeira. In total, Teixeira received more than $100,000. Although Teixeira pocketed these fraudulent proceeds and used the money for personal expenses, he never reported the money on the tax forms that he filed with the IRS during the course of the scheme.

The wire fraud conspiracy charge carries a statutory maximum prison sentence of 20 years, while the tax evasion charge carries a statutory maximum of five years in prison. Both charges are also punishable by a fine of $250,000 or twice the gross gain or loss from the scheme, whichever is greatest. Sentencing is scheduled for March 27, 2023.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Sean Farrell, Chief of the U.S. Attorney’s Office Cybercrime Unit, and Executive Assistant U.S. Attorney Lee M. Cortes Jr.

Source-FBI

Nonprofit Feeding Our Future and 200+ Meal Sites in Minnesota Perpetrated the Largest COVID-19 Fraud Scheme in the Nation

The Department of Justice announced today federal criminal charges against 47 defendants for their alleged roles in a $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic.

“These indictments, alleging the largest pandemic relief fraud scheme charged to date, underscore the Department of Justice’s sustained commitment to combating pandemic fraud and holding accountable those who perpetrate it,” said Attorney General Merrick B. Garland. “In partnership with agencies across government, the Justice Department will continue to bring to justice those who have exploited the pandemic for personal gain and stolen from American taxpayers.”

“Today’s indictments describe an egregious plot to steal public funds meant to care for children in need in what amounts to the largest pandemic relief fraud scheme yet,” said FBI Director Christopher Wray. “The defendants went to great lengths to exploit a program designed to feed underserved children in Minnesota amidst the COVID-19 pandemic, fraudulently diverting millions of dollars designated for the program for their own personal gain. These charges send the message that the FBI and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”

“This was a brazen scheme of staggering proportions,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “These defendants exploited a program designed to provide nutritious food to needy children during the COVID-19 pandemic. Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewelry, and coastal resort property abroad. I commend the work of the skilled investigators and prosecutors who unraveled the lies, deception, and mountains of false documentation to bring this complex case to light.”

The 47 defendants are charged across six separate indictments and three criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery.

As outlined in the charging documents, the defendants devised and carried out a massive scheme to defraud the Federal Child Nutrition Program. The defendants obtained, misappropriated, and laundered 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 Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally-funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.

During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs.

Aimee Bock was the founder and executive director of Feeding Our Future, a nonprofit organization that was a sponsor participating in the Federal Child Nutrition Program. The indictments charge Bock with overseeing a massive fraud scheme carried out by sites under Feeding Our Future’s sponsorship. Feeding Our Future went from receiving and disbursing approximately $3.4 million in federal funds in 2019 to nearly $200 million in 2021.

As part of the charged scheme, Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota. These sites, created and operated by the defendants and others, fraudulently claimed to be serving meals to thousands of children a day within just days or weeks of being formed. The defendants created dozens of shell companies to enroll in the program as Federal Child Nutrition Program sites. The defendants also created shell companies to receive and launder the proceeds of their fraudulent scheme.

To carry out the scheme, the defendants also created and submitted false documentation. They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site. The defendants submitted false invoices purporting to document the purchase of food to be served to children at the sites. The defendants also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names. For example, one roster was created using names from a website called “www.listofrandomnames.com.” Because the program only reimbursed for meals served to children, other defendants used an Excel formula to insert a random age between seven and 17 into the age column of the rosters.

Despite knowing the claims were fraudulent, Feeding Our Future submitted the fraudulent claims to MDE and then disbursed the fraudulently obtained Federal Child Nutrition Program funds to the individuals and entities involved in the scheme.

In exchange for sponsoring these sites’ fraudulent participation in the program, Feeding Our Future received more than $18 million in administrative fees to which it was not entitled. In addition to the administrative fees, Feeding Our Future employees solicited and received bribes and kickbacks from individuals and companies sponsored by Feeding Our Future. Many of these kickbacks were paid in cash or disguised as “consulting fees” paid to shell companies created by Feeding Our Future employees to make them appear legitimate.

When MDE attempted to perform necessary oversight regarding the number of sites and amount of claims being submitted, Bock and Feeding Our Future gave false assurances that they were monitoring the sites under its sponsorship and that the sites were serving the meals as claimed. When MDE employees pressed Bock for clarification, Bock accused MDE of discrimination and unfairly scrutinizing Feeding Our Future’s sites. When MDE denied Feeding Our Future site applications, Bock and Feeding Our Future filed a lawsuit accusing MDE of denying the site applications due to discrimination in violation of the Minnesota Human Rights Act.

In total, Feeding Our Future opened more than 250 sites throughout the state of Minnesota and fraudulently obtained and disbursed more than $240 million in Federal Child Nutrition Program funds. The defendants used the proceeds of their fraudulent scheme to purchase luxury vehicles, residential and commercial real estate in Minnesota as well as property in Ohio and Kentucky, real estate in Kenya and Turkey, and to fund international travel.

“Exploiting a government program intended to feed children at the time of a national crisis is the epitome of greed,” said Special Agent in Charge Justin Campbell of the IRS Criminal Investigation, Chicago Field Office. “As alleged, the defendants charged in this case chose to enrich themselves at the expense of children. Instead of feeding the future, they chose to steal from the future. IRS – Criminal Investigation is pleased to join our law enforcement partners to hold these defendants accountable.”

United States v. Aimee Marie Bock, et al., 22-CR-223 (NEB/TNL), charges 14 defendants 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 for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Safari Restaurant enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Safari Restaurant and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $32 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.

United States v. Abdiaziz Shafii Farah, et al., 22-CR-124 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, federal programs bribery, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Empire Cuisine and Market LLC enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The owners of Empire Cuisine and Market LLC and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $40 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, travel, real estate, and property in Kenya.

United States v. Qamar Ahmed Hassan, et al., 22-CR-224 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In August 2020, S & S Catering Inc. enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owner of S & S Catering and other co-conspirators opened sites across the Twin Cities and claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $18 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles and real estate.

United States v. Haji Osman Salad, et al., 22-CR-226 (NEB/TNL), charges five defendants with wire fraud, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Haji’s Kitchen LLC and other co-conspirators enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The co-conspirators opened sites across the state of Minnesota, as well as multiple shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $25 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.

United States v. Liban Yasin Alishire, et al., 22-CR-222 (NEB/TML), charges three defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs, federal programs bribery, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Community Enhancement Services Inc. and other co-conspirators opened multiple sites and shell companies in the JigJiga Business Center in Minneapolis. Over the course of the fraud scheme, the defendants claimed to have served hundreds of thousands of meals. Based on their fraudulent claims, the defendants received more than $1.6 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and beach property in Kenya.

United States v. Sharmake Jama, et al., 22-CR-225 (NEB/TNL), charges six defendants with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. In September 2020, Brava Restaurant & Café LLC, a site located in Rochester, Minnesota, enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Brava Restaurant & Café and other co-conspirators claimed to have served millions of meals from Brava Restaurant & Café and falsely claimed to have a contract with Rochester Public Schools. Based on their fraudulent claims, the defendants received approximately $4.3 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and property on the Mediterranean coast of Turkey.

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The following defendants are named in the United States v. Aimee Marie Bock, et al. indictment:

Aimee Marie Bock, 41, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery. Bock was the founder and executive director of Feeding Our Future. Bock oversaw the $240 million fraud scheme carried out by sites under Feeding Our Future’s sponsorship.

Abdikerm Abdelahi Eidleh, 39, of Burnsville, Minnesota, 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. Eidleh was an employee of Feeding Our Future who solicited and received bribes and kickbacks from individuals and sites under the sponsorship of Feeding Our Future. Eidleh also created his own fraudulent sites.

Salim Ahmed Said, 33, of Plymouth, Minnesota, 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. Said was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.

Abdulkadir Nur Salah, 36, of Columbia Heights, Minnesota, 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. Abdulkadir Salah was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.

Ahmed Sharif Omar-Hashim, 39, of Minneapolis, Minnesota, 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. Omar-Hashim created a company called Olive Management Inc., a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.

Abdi Nur Salah, 34, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdi Salah registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.

Abdihakim Ali Ahmed, 36, of Apple Valley, Minnesota, 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. Abdihakim Ahmed created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.

Ahmed Mohamed Artan, 37, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, conspiracy to commit money laundering, and money laundering. Artan registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.

Abdikadir Ainanshe Mohamud, 30, of Fridley, Minnesota, 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. Mohamud ran the Stigma-Free Willmar site. This site claimed to have served approximately 1.6 million meals and received more than $4 million in fraudulent Federal Child Nutrition Program funds.

Abdinasir Mahamed Abshir, 30, of Minneapolis, Minnesota, 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. Abdinasir Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.

Asad Mohamed Abshir, 32, of Mankato, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Asad Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.

Hamdi Hussein Omar, 26, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Omar ran the Stigma-Free Waite Park site. This site claimed to have served more than 500,000 meals and received more than $1 million in fraudulent Federal Child Nutrition Program funds.

Ahmed Abdullahi Ghedi, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Ghedi created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.

Abdirahman Mohamud Ahmed, 54, of Columbus, Ohio, is charged with conspiracy to commit money laundering and money laundering. Abdirahman Ahmed was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.

The following defendants are named in the United States v. Abdiaziz Shafii Farah, et al. indictment:

Abdiaziz Shafii Farah, 33, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, money laundering, and false statements in a passport application. Abdiaziz Farah was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.

Mohamed Jama Ismail, 49, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ismail was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.

Mahad Ibrahim, 46, of Lewis Center, Ohio, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ibrahim was the president and owner of ThinkTechAct Foundation, a Minnesota non-profit organization that also operated under the name Mind Foundry Learning Foundation. ThinkTechAct and Mind Foundry created dozens of sites throughout Minnesota, including in Minneapolis, St. Paul, Bloomington, Burnsville, Faribault, Owatonna, Shakopee, Circle Pines, and Willmar. ThinkTechAct received more than $18 million in fraudulent Federal Child Nutrition Program funds.

Abdimajid Mohamed Nur, 21, of Shakopee, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdimajid Nur created Nur Consulting LLC to receive and launder Federal Child Nutrition Program funds from Empire Cuisine and Market, ThinkTechAct, and other entities involved in the scheme.

Said Shafii Farah, 40, of Minneapolis, Minnesota, 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. Said Farah, the brother of Abdiaziz Farah, was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.

Abdiwahab Maalim Aftin, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering. Aftin was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.

Mukhtar Mohamed Shariff, 31, of Bloomington, Minnesota, 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. Shariff was the chief executive officer of Afrique Hospitality Group, a shell company used to fraudulent obtain and launder Federal Child Nutrition Program funds.

Hayat Mohamed Nur, 25, of Eden Prairie, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Hayat Nur, the sister of Abdimajid Nur, participated in the scheme by creating and submitting fraudulent meal count sheets, attendance rosters, and invoices.

The following defendants are named in the United States v. Qamar Ahmed Hassan, et al. indictment:

Qamar Ahmed Hassan, 53, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to commit money laundering, and money laundering. Hassan was the owner and operator of S & S Catering Inc., a for-profit restaurant and catering business that participated in the scheme as a distribution site and as a vendor for other sites. S & S Catering received more than $18 million in fraudulent Federal Child Nutrition Program funds.

Sahra Mohamed Nur, 61, of Saint Anthony, Minnesota, is charged with conspiracy to wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Nur ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.

Abdiwahab Ahmed Mohamud, 32, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Mohamud ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.

Filsan Mumin Hassan, 28, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Hassan ran a site called Youth Higher Educational Achievement that falsely claimed to serve up to 4,300 meals a day.

Guhaad Hashi Said, 46, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Hashi ran a site under the name Advance Youth Athletic Development that falsely claimed to serve up to 5,000 meals a day.

Abdullahe Nur Jesow, 62, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Jesow ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.

Abdul Abubakar Ali, 40, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Abdul Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.

Yusuf Bashir Ali, 40, of Vadnais Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Yusuf Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.

The following defendants are named in the United States v. Haji Osman Salad, et al. indictment:

Haji Osman Salad, 32, of St. Anthony, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Salad was the principal of Haji’s Kitchen and received approximately $11.6 million in fraudulent Federal Child Nutrition Program funds.

Fahad Nur, 38, of Minneapolis, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Nur was the principal of The Produce LLC, a vendor and purported food supplier who received more than $5 million in fraudulent Federal Child Nutrition Program funds.

Anab Artan Awad, 52, of Plymouth, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Awad was the president of Multiple Community Services, MCA. Awad claimed more than $11 million in fraudulent Federal Child Nutrition Program funds.

Sharmarke Issa, 40, of Edina, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Issa created a company called Minnesota’s Somali Community and was the manager of Wacan Restaurant LLC. Issa fraudulently caused MDE to pay out more than $7.4 million in Federal Child Nutrition Program funds.

Farhiya Mohamud, 63, of Bloomington, Minnesota, is charged with conspiracy to commit money laundering, and money laundering. Mohamud was the principal and CEO of Dua Supplies and Distribution Inc., a shell company that laundered millions of dollars of fraudulently obtained Federal Child Nutrition Program funds.

The following defendants are named in the United States v. Liban Yasin Alishire, et al. indictment:

Liban Yasin Alishire, 42, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and money laundering. Alishire was the president and owner of Community Enhancement Services Inc., a company located in the JigJiga Business Center in Minneapolis. Community Enhancement Services was a cultural mall owned and operated by Alishire and co-defendant Khadar Jigre Adan. Community Enhancement Services received more than $1.6 million in fraudulent Federal Child Nutrition Program funds.

Ahmed Yasin Ali, 57, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Ali created a second program site, run by Lake Street Kitchen, and located in the JigJiga Business Center in Minneapolis.

Khadar Jigre Adan, 59, of Lakeville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Adan was the CEO of Lake Street Kitchen, which was a program site located in the JigJiga Business Center in Minneapolis.

The following defendants are named in the United States v. Sharmake Jama, et al. indictment:

Sharmake Jama, 34, of Rochester, Minnesota, is charged with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Sharmake Jama was a principal of Brava Restaurant and Café LLC. Brava Restaurant received approximately $4.3 million in fraudulent Federal Child Nutrition Program funds.

Ayan Jama, 43, of Rochester, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Ayan Jama was a principal of Brava Restaurant and Café LLC. Ayan Jama also created shell companies to launder fraudulent proceeds.

Asha Jama, 39, of Lakeville, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Asha Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.

Fartun Jama, 35, of Rosemount, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Fartun Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.

Mustafa Jama, 45, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Mustafa Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.

Zamzam Jama, 48, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Zamzam Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.

Criminal informations:

Bekam Addissu Merdassa, 39, of Inver Grove Heights, Minnesota, is charged with one count of conspiracy to commit wire fraud.

Hadith Yusuf Ahmed, 34, of Eden Prairie, Minnesota, is charged with one count of conspiracy to commit wire fraud.

Hanna Marekegn, 40, of Edina, Minnesota, is charged with one count of conspiracy to commit wire fraud.

United States Attorney Andrew Luger thanked the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these indictments.

Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab for the District of Minnesota are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source-FBI

Members of the Association of Senior Civil Servants of Nigeria in Oyo state have called on relevant authorities to look into the financial records of the association.

The members made this call in a press statement.

''We have reported their conduct to the Inspector General of Police who has promptly directed investigations by FCID, Alagbon Lagos on the matter.The fact of the matter is that, Mr. Alade Bashir Lawal and his partners were reported to the police for suspected fraud of monumental proportion and mismanagement of the union’s finance and resources. On the basis of the complaint the Inspector General of Police directed the Force CID to investigate the criminal allegations and the petition by the union’s President, Comrade Innocent Bola-Audu.The Commissioner of Police Lagos was also directed by the IGP to provide security in the Secretariat to ensure no breakdown of law and order, and in order to prevent the suspects in the case from tampering with evidence materials that may be needed in police investigations. The Union is bleeding and needs immediate resuscitation to survive, because a massive damage has been done to its resources, assets and manpower.Therefore, there is work to be done. As, you may already be aware that some arrests were made in the Union by Federal Criminal Investigation Department (FCID) of the Nigeria Police, Alagbon Lagos on the orders of the Inspector-General of Police on Thursday August 4, 2022,'' the statement concluded.

                                                                            Press Release

WASHINGTON – Donnell Owens, a former employee of the American Federation of Government Employees, was sentenced today to 15 months in prison for an embezzlement scheme in which he stole more than $270,000 from the labor union.

            The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Mark Wheeler, Director of the Washington District Office of the U.S. Department of Labor, Office of Labor-Management Standards.

Read-Helplessness in the Face of Dirt

            Owens, 34, of District Heights, Maryland, pleaded guilty in October 2021, in the U.S. District Court for the District of Columbia, to one count of embezzlement and theft of labor union assets. He was sentenced by the Honorable Reggie B. Walton. Following his prison term, Owens will be placed on three years of supervised release. He also must pay $273,745 in restitution and an equal amount in a forfeiture money judgment.

-Legalizing Crime and Criminality

            According to the statement of offense submitted to the Court and admitted by Owens, from October 2014 through June 2018, Owens worked as a Secretary to the Director of Communications at the American Federation of Government Employees (AFGE), a labor organization headquartered in Washington, D.C. which represents workers in various functions of the private sector and the government affecting commerce throughout the United States and overseas.  During this period, Owens embezzled more than $270,000 in AFGE funds for his use and the use of others. 

-Landlords and Tenants Associations, Crime and Criminality

            As detailed in court documents, throughout the scheme Owens abused and misused his position and employment at AFGE in order to seek and obtain illegal monetary gains at the expense of the labor organization.  For example, Owens submitted false and fraudulent check requests for payments related to services, such as photography and videography, that were purportedly provided by alleged vendors.  As a result of these submissions, AFGE funds were subsequently disbursed.  These check requests listed fictitious dollar amounts for fake work assignments supposedly performed by vendors, who were not actually hired by AFGE.  In fact, the purported vendors who allegedly performed the fake work assignments were really friends and associates of Owens, who he recruited as part of his illegal scheme. 

-Law Enforcement: The Reactionary Approach

            As Secretary to the Director of Communications, Owens also had access to an Amazon account and a union credit card linked to it. During the scheme, Owens also used this account and linked credit card to embezzle items and make dozens of unauthorized personal purchases, including clothing, shoes, jewelry, and party supplies.  Additionally, Owens used union credit cards to purchase items from other online retailers for personal use, including T-shirts for his online business, microphones, and flowers. 

            To avoid detection and cover up the fraud, Owens provided falsified signatures, fraudulent expense vouchers, and altered receipts for these items.  However, the investigation revealed photos of Owens, his family members, and associates wearing the clothing purchased on Amazon with the union credit card on social media accounts belonging to the defendant. 

-Government Workers-A Subject of Debate

            This investigation was conducted by the FBI’s Washington Field Office and the U.S. Department of Labor, Office of Labor-Management Standards.  The prosecution is being handled by Assistant U.S. Attorney Anne P. McNamara of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Assistant U.S. Attorney Emily A. Miller and Paralegal Specialists Amanda Rohde and Mariela Andrade.

Source-FBI

A senior Police Officer in Kenya has recounted how he was defrauded of Ksh 597, 100 by syndicate via sim card swap.
 Commanding Police Division (OCPD), Peter Mwanzo, testified against one of the members of the syndicate , one Gideon Mark before a magistrate’s court in Milimani, Nairobi, where the latter was accused of stealing Ksh597,100 in a sim-swap fraud.

Read-Helplessness in the Face of Dirt                                                           -Legalizing Crime and Criminality

He stated that  at about  6.45 pm he received a phone call from a private number but he did not pick up although the caller kept bugging his phone. He put the phone in flight mode to avoid further disturbance.
He deactivated the flight mode at 6.50pm, but his mobile phone failed to pick up the signal. Mwanzo rechecked his phone at 9 pm but it had not yet picked network.

-Landlords and Tenants Associations, Crime and Criminality
Mwanzo stated that after the problem persisted, he visited a sim card outlet in the neighbourhood to get assistance. The attendant, he narrated, informed him that his sim card had failed and advised him to do a replacement.
The senior police officer continues :
“She could not tell how I lost the sim card but I did the replacement and it was reactivated. Upon turning on my phone, I was surprised by the messages that started coming in.

-Law Enforcement: The Reactionary Approach

"I tried to purchase airtime and send money but the transaction failed and got a message that I had exceeded my limits,” the senior police officer told the court.
“I was shocked that I had even registered a loan and a mobile money account. I had never applied for any loan or registered with the subscriber,” Mwanzo recalled.
He told the court that he does not know how and where the fraudsters obtained his private information to carry out the bank transactions.

-Government Workers-A Subject of Debate
The statements indicated that the money was moved in four batches. The police boss noted that although the scammers were in Donholm, Nairobi, the money that was stolen from his account was withdrawn by a third party in Bomet.
Mwanzo  requested his mobile money and bank account statements to confirm the alleged transactions.

“To my surprise, on that night, I had transacted from a bank account to mobile money about Ksh597,100,” he stated.
“Someone used my sim card remotely. This is madness and it seemed easy for the third party to use my sim card.” the senior police officer lamented.