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Savage woman pleads guilty in $250 million child nutrition fraud scheme

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Andrew M. Luger, U.S. Attorney | U.S. Attorney for the District of Minnesota

A woman from Savage, Minnesota, has admitted guilt in a scheme that defrauded a federally funded child nutrition program during the COVID-19 pandemic. The announcement was made by Acting U.S. Attorney Lisa D. Kirkpatrick.

Court documents reveal that Ayan Farah Abukar, 43, along with her co-defendants, orchestrated a large-scale fraud against the Federal Child Nutrition Program. They misappropriated and laundered millions intended for reimbursing meal costs for children. The defendants took advantage of program changes meant to ensure underserved children received proper nutrition during the pandemic but instead used the funds for personal gain.

Abukar founded and served as executive director of Action for East African People, a non-profit organization she enrolled in the Federal Child Nutrition Program under Feeding Our Future and Sponsor A's sponsorship. From October 2020 through 2022, Abukar falsely claimed to serve up to 5,000 children daily at sites in Bloomington, Minneapolis, Savage, and St. Paul. She fraudulently obtained approximately $5.7 million from the program funds. As part of this fraudulent activity, Abukar paid over $330,000 in kickbacks to an employee of Feeding Our Future and spent millions on real estate and an aircraft purchase in Nairobi, Kenya.

Abukar pleaded guilty before Chief Judge Schiltz in U.S District Court to one count of conspiracy to commit wire fraud. Her sentencing hearing will be scheduled later.

The investigation involved the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier are prosecuting this case while Assistant U.S Attorney Craig Baune is managing asset seizure and forfeiture.

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