Bag of cash doesn’t stop jurors from convicting 5 of 7 defendants in $40 million food fraud scheme

By Michael Goldberg And Steve Karnowski

MINNEAPOLIS (AP) — A jury convicted five Minnesota residents and acquitted two others on Friday for their roles in a scheme to steal more than $40 million from a program that was supposed to feed children during the coronavirus pandemic. The case received widespread attention after someone tried to bribe a juror with a bag of $120,000 in cash.

That juror was dismissed before deliberations began, and a second juror who was told about it also was dismissed. An FBI investigation of the attempted bribe continues, with no arrests announced.

After the verdicts were read, Assistant U.S. Attorney Joe Thompson called the attempted bribe “an attack on our criminal justice system” and told reporters that authorities would investigate with all of their resources. He made no other comment on that issue, and expressed satisfaction at the convictions in the fraud case.

“They lied and they fraudulently claimed to be feeding millions of meals to children in Minnesota during COVID. The defendants took advantage of the COVID-19 pandemic to defraud the state of Minnesota and to steal tens of millions of dollars,” Thompson said. “This conduct was not just criminal, it was depraved and brazen.”

The seven people were the first of 70 to stand trial in what federal prosecutors have called one of the nation’s largest COVID-19-related frauds, exploiting rules that were kept lax so that the economy wouldn’t crash during the pandemic. More than $250 million in federal funds was taken in the Minnesota scheme overall, with only about $50 million of it recovered, authorities said.

The food aid came from the U.S. Department of Agriculture and was administered by the state, which funneled the meal money through nonprofit organizations and other partners. As rules were eased to speed support to the needy, the defendants allegedly produced invoices for meals never served, ran shell companies, laundered money, indulged in passport fraud and accepted kickbacks.

Federal prosecutors said just a fraction of the money the defendants received through the Feeding our Future nonprofit went to feed low-income kids, while the rest was spent on luxury cars, jewelry, travel and property.

The defendants in this trial faced a mix of multiple counts including conspiracy, wire fraud, money laundering and federal programs bribery. Each defendant was charged based on their alleged role, and each had their own attorney. In the end, the jurors delivered a split verdict.

Abdiaziz Shafii Farah, Mohamed Jama Ismail, Abdimajid Mohamed Nur, Mukhtar Mohamed Shariff and Hayat Mohamed Nur were found guilty on most of the counts against them. Prosecutors have described Abdiaziz Farah as a ringleader of the seven and faced the most counts; he was convicted on 23 of 24 counts against him.

Said Shafii Farah and Abdiwahab Maalim Aftin were acquitted on all counts they faced. Aftin was charged with three counts, the least of all seven defendants.

Andrew Garvis, an attorney for Aftin, said afterward that the case was complex.

“The government had a lot of evidence, and the jury took their time in consideration,” Garvis said. “That’s what we want in the system, so we appreciate it.”

Steven Schleicher, Said Farah’s attorney, said his client is grateful to have been acquitted.

Attorneys for Abdimajid Nur, Hayat Nur, Abdiaziz Farah and Ismail did not immediately respond to phone messages seeking comment. Frederick Goetz, an attorney for Shariff, declined to comment.

The common thread in the defense arguments was that investigators failed to dig deep enough to see they served real meals to real kids.

Sentencing hearings will be scheduled at a later date.

An Associated Press analysis published last June documented how thieves across the country plundered billions in federal COVID-19 relief dollars. Fraudsters potentially stole more than $280 billion, while another $123 billion was wasted or misspent. Combined, the loss represented 10% of the $4.3 trillion the government disbursed by last fall. Nearly 3,200 people have been charged and about $1.4 billion in stolen pandemic aid has been seized, according to the U.S. Justice Department.