Two more defendants have pleaded guilty for their roles in the $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick on Tuesday.
A former Minneapolis mayoral aide and a co-owner of Safari Restaurant in Minneapolis were two of 48 defendants indicted in November 2022 in connection with the scheme in which numerous nonprofits were paid for millions of meals they never actually served after filing reimbursement claims.
St. Paul resident Abdi Nur Salah, 37, and Abdulkadir Nur Salah, 28, of Columbia Heights both pleaded guilty this week. Court documents show that from about April 2020 to January 2022, the two men obtained, misappropriated and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children.
“Rather than feed children, the defendants took advantage of the Covid-19 pandemic — and the resulting program changes — to enrich themselves by fraudulently misappropriating millions of dollars in federal child nutrition program funds,” a press release said.
Abdulkadir Nur Salah was co-owner and operator of Safari Restaurant, which received more than $16 million in fraudulent funds.
Abdi Nur Salah registered Stigma-Free International, a nonprofit entity used to carry out the fraud scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park and St. Paul. Abdi Salah also worked for the city of Minneapolis as a senior policy aide to the mayor.
As part of their plea agreement entered Tuesday, each man admitted that some of their assets and money were received by fraud and therefore subject to forfeiture.
Under the plea deal, Abdulkadir Salah forfeited $309,993.51 from an account connected to Safari Restaurant, $435,512.44 from another company and real estate property in Minneapolis.
Abdi Salah forfeited $343,418.98 from a business account and real estate property in North Brooklyn Park and Minneapolis.
The men’s sentencing hearings will be scheduled at a later date.
Last week, Mukhtar Mohamed Shariff, 34, of Bloomington pleaded guilty and was ordered to pay $47,920.514 in restitution.
Related Articles
After bankruptcy filing, embattled Roseville aquarium chain to potentially sell for $80K
St. Paul man sentenced for aiding shooter in 2019 killing outside University Avenue bar
Charges: St. Paul man flees police in stolen car and crashes, killing girlfriend who was a passenger
Former Washington County Sheriff’s Office deputy sues for alleged sexual harassment
St. Paul man accused of helping son hide 4 bodies in Wisconsin cornfield sentenced to 16 years in prison
When the first 48 defendants were indicted in November 2022, the U.S. Attorney’s Office said it already had recovered around $50 million in money and property of the roughly $250 million stolen. Asked this month for an update, prosecutors gave the same figure: about $50 million recovered.
The fraud, which took place at a time during the coronavirus pandemic when government funds flowed freely with minimal oversight, now has produced a total of 70 indictments and brought about new government controls around grant dollars.
The criminal cases involved the Child and Adult Care Food Program and Summer Food Service Program, two federal meal programs administered by the Minnesota Department of Education, which reimbursed a long list of obscure nonprofits and businesses for handing out meals to children and their families while schools were closed during the pandemic.
Leave a Reply