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Two Defendants Plead Guilty in $10M Feeding Our Future Fraud Scheme

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Summary

Two defendants in the Feeding Our Future fraud scheme have pleaded guilty. Suleman Yusuf Mohamed pleaded guilty to wire fraud and agreed to pay $8.66 million in restitution for his role as vendor Star Distribution, which received $10.1 million in federal child nutrition funds. His brother Gandi Yusuf Mohamed pleaded guilty to money laundering, agreeing to pay $1.3 million in restitution for laundering fraud proceeds through his property companies.

What changed

Two defendants pleaded guilty for their roles in the Feeding Our Future fraud scheme that exploited the Federal Child Nutrition Program during the COVID-19 pandemic. Suleman Yusuf Mohamed, who operated Star Distribution as a food vendor, received approximately $10.1 million in federal funds meant to provide over 4.8 million meals to children but spent minimally on food, pocketing most for personal expenses and transferring millions to co-conspirators including his brother. Gandi Yusuf Mohamed laundered approximately $1.3 million in fraud proceeds through his property companies GAK Properties LLC and GIF Properties LLC, which owned buildings used as meal distribution sites.

The convictions signal continued aggressive enforcement against those who exploit federal nutrition programs. Organizations participating in Federal Child Nutrition Programs should ensure robust internal controls, accurate meal counting documentation, and proper segregation of funds. The 65th defendant conviction in this scheme demonstrates the scope of this coordinated fraud investigation conducted by the FBI, IRS-CI, USPS Inspector General, and HSI.

What to do next

  1. Monitor for sentencing dates
  2. Review internal controls for federal nutrition program compliance

Penalties

Suleman Mohamed: $8,662,287 restitution, one count wire fraud. Gandi Mohamed: $1,300,000 restitution, one count money laundering.

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Apr 10, 2026

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Press Release

Two More Defendants Plead Guilty in Feeding Our Future Fraud Scheme

Thursday, April 9, 2026

Share For Immediate Release Office of Public Affairs Star Distribution Received Over $10 Million Meant to Feed Children, Most Pocketed by Conspirators Two more defendants—Suleman Yusuf Mohamed and his brother Gandi Yusuf Mohamed—have pleaded guilty for their roles in the Feeding Our Future fraud scheme, announced Colin McDonald, Assistant Attorney General for the National Fraud Enforcement Division, and U.S. Attorney Daniel N. Rosen for the District of Minnesota.

The number of defendants convicted scheme-wide is now at 65. The brothers were charged in United States v. Mohamed et al., along with five other defendants who pleaded guilty in March. The number of defendants convicted in the Feeding Our Future scheme has now reached 65.

Suleman Yusuf Mohamed, who pleaded guilty on April 2, 2026, participated in the Federal Child Nutrition Program as a vendor under the sponsorship of Feeding Our Future. As a vendor, Star Distribution was supposed to provide food to meal distribution sites participating in the Federal Child Nutrition Program, including multiple sites operated by his co-defendants. While Star Distribution ultimately received approximately $10.1 million of Federal Child Nutrition Program funds—purportedly for providing food for more than 4.8 million meals—it spent relatively minimal amounts of that money on food. Instead, Mohamed used the money for his own personal expenses and transferred millions of dollars back to others participating in the scheme, including his sister Ikram Mohamed and brother Gandi. Suleman Mohamed pleaded guilty to one count of wire fraud and has agreed to pay $8,662,287 in restitution.

Gandi Yusuf Mohamed pleaded guilty to one count of money laundering today, April 9, 2016. Through his companies GAK Properties LLC and GIF Properties LLC, Gandi Mohamed owned three different buildings that purportedly housed Federal Child Nutrition Program meal distribution sites, including multiple sites operated by his co-defendants. Gandi Mohamed used those companies to receive and launder approximately $1.3 million of his co-defendant’s fraud proceeds, which he has agreed to pay back to the government as restitution.

Sentencing hearings for both defendants will be scheduled at a later date.

These cases result from an investigation conducted by the FBI, IRS – Criminal Investigations, U.S. Postal Inspection Service, and HSI.

Minneapolis Man Sentenced to 43 Months for Role in Feeding Our Future Fraud Scheme

Earlier today in Minneapolis, Abdullahe Nur Jesow of Minneapolis was sentenced to 43 months in prison followed by two years of supervised release for his role in a $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic. Jesow was also ordered to pay restitution in the amount of $866,458.

According to court documents, from December 2020 through September 2021, Abdullahe Nur Jesow, 65, purported to operate a Federal Child Nutrition Program meal distribution site from his event space, Benadir Hall, located on Lake Street in Minneapolis. The site was ostensibly operated by a non-profit entity called Academy for Youth Excellence, for which Jesow served as Secretary.

Between December 2020 and September 2021, Academy for Youth Excellence claimed to have served over 1.7 million meals to children at Benadir Hall. In reality, Academy for Youth Excellence only provided a fraction of those meals. Based on these fraudulent claims, Academy for Youth Excellence and its alleged food vendor, S&S Catering, received $4,286,088 in Federal Child Nutrition Program funds. Rather than feed children during the pandemic, Jesow misappropriated the funds for his own personal benefit, including for the purchase of a home in Columbia Heights, Minnesota.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

Updated April 9, 2026 Components National Fraud Enforcement Division USAO - Minnesota Press Release Number: 26-340

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Press Release Five More Plead Guilty in Minnesota Feeding Our Future Fraud Scheme This week, Ikram Yusuf Mohamed, Aisha Hassan Hussein, Sahra Sharif Osman, Shakur Abdinur Abdisalam, and Fadumo Mohamed Yusuf all pleaded guilty to wire fraud for their respective roles in the...

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Last updated

Classification

Agency
DOJ
Filed
April 9th, 2026
Instrument
Enforcement
Legal weight
Binding
Stage
Final
Change scope
Substantive
Document ID
United States v. Mohamed et al.

Who this affects

Applies to
Nonprofits Criminal defendants Government agencies
Industry sector
9211 Government & Public Administration
Activity scope
Federal nutrition program fraud Wire fraud Money laundering
Geographic scope
United States US

Taxonomy

Primary area
Criminal Justice
Operational domain
Legal
Topics
Fraud & Financial Crimes Government & Public Administration

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