A Bloomington man has been sentenced to 210 months in prison, followed by three years of supervised release, for his involvement in a $250 million fraud scheme that misused a federally funded child nutrition program during the COVID-19 pandemic. The announcement was made by Acting U.S. Attorney Lisa D. Kirkpatrick. The defendant is also required to pay restitution amounting to $47,920,514.

"The defendant committed a brazen fraud that shamelessly stole taxpayer money intended to feed children during a global pandemic. He lined his pockets, here and abroad, with millions," stated Acting U.S. Attorney Kirkpatrick. "As the Court found, he doubled down on his crimes by obstructing justice. This significant sentence should serve as a clear warning to anyone who would seek to exploit and defraud government programs. You will be held accountable."

The trial revealed that Mukhtar Mohamed Shariff, aged 34, along with co-defendants orchestrated a multi-million dollar fraud scheme targeting the Federal Child Nutrition Program. As CEO of Afrique Hospitality Group, Shariff misappropriated and laundered millions meant for meal reimbursements for children. They exploited program changes aimed at ensuring adequate nutrition for underserved children during the pandemic by submitting fraudulent documents such as meal count sheets and fake attendance rosters.

The Federal Child Nutrition Program is managed by the U.S. Department of Agriculture (USDA) and provides free meals to needy children across the nation through state governments like Minnesota's Department of Education (MDE). Meals are served at "sites" sponsored by authorized organizations responsible for monitoring sites and preparing reimbursement claims.

During the pandemic, USDA waived some standard requirements allowing more flexibility in participation, including permitting for-profit restaurants and off-site food distribution.

Following a seven-week trial before Judge Nancy E. Brasel in June 2024 at U.S. District Court, Shariff was convicted on multiple counts including conspiracy to commit wire fraud and money laundering. Judge Brasel remarked on Shariff’s conduct as showing a "staggering lack of respect for the law," noting taxpayers' outrage over the crime's brazenness.

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

Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, Daniel W. Bobier prosecuted this case while Assistant U.S Attorney Craig Baune manages asset seizure and forfeiture proceedings.