Andrew M. Luger, U.S. Attorney | U.S. Attorney for the District of Minnesota
Two individuals have pleaded guilty to their involvement in a $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic. Acting U.S. Attorney Lisa D. Kirkpatrick announced the pleas of Abdulkadir Nur Salah, 38, from Columbia Heights, Minnesota, and Abdi Nur Salah, 37, from St. Paul, Minnesota.
Court documents reveal that between April 2020 and January 2022, both defendants participated in defrauding a federal child nutrition program intended to provide free meals to children in need. The scheme involved obtaining and laundering millions of dollars meant for meal reimbursements for underserved children during the pandemic.
Abdulkadir Nur Salah was identified as co-owner and operator of Safari Restaurant, which received over $16 million in fraudulent funds from the Federal Child Nutrition Program. Abdi Nur Salah established Stigma-Free International, a non-profit entity used to perpetrate the fraud across various sites in Minnesota, including Willmar, Mankato, St. Cloud, Waite Park, and St. Paul. Additionally, Abdi Salah served as a Senior Policy Aide to the Mayor of Minneapolis.
As part of their plea agreements entered today, both defendants acknowledged that several assets and funds were obtained through their fraudulent activities and are subject to forfeiture to the United States. Abdulkadir Salah's forfeited assets include significant sums seized from Bell Bank accounts associated with Safari Restaurant and real estate in Minneapolis. Abdi Salah's forfeited assets include funds from a Star Choice Credit Union account linked to Stone Bridge Development LLC and properties in Brooklyn Park and Minneapolis.
Both men pleaded guilty before Chief Judge Patrick J. Schiltz in U.S. District Court. Sentencing hearings will be scheduled later.
The case is under investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Prosecution is being led by Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier for the District of Minnesota; Assistant U.S. Attorney Craig Baune is managing asset seizure and forfeiture.
