While we all have seen our fair share of fraud and embezzlement, Minnesota has had an unfortunate share of COVID-19 relief aid fraud cases that occurred within the non-profit Feeding Our Future. A nonprofit that had fraudulently obtained more than $50 million in pandemic relief aid, using several smaller entities to do so. In what prosecutors call one of the largest pandemic-era cases in the United States, seventy people have been indicted or found guilty so far. Sharmarke Issa had his day in court for his part in this scheme. Sharmarke Issa was the first migrant appointed by the Minneapolis City Council to chair the MPHA Board of Commissioners. Democrat Mayor Jacob Frey described him as a “skilled steward of our public housing infrastructure who understands and centers the needs of residents.” Yet, in February of 2022, Issa left his post supposedly for personal matters. A little matter of a federal investigation into a building he owned, which the federal government said was purchased with money intended to feed children.
While masquerading behind the façade of a “skilled steward of public housing”, Issa had facilitated a multi-million dollar money laundering operation that stole money from a COVID fund intended to provide meals to children during the pandemic. Issa claimed to serve 2.3 million meals to children at his food sites Minnesota’s Somali Community and Wacan Restaurant. But he only established those businesses to launder the fraudulently obtained funds. Issa was responsible for $7.6 million of the $50 million in fraud scheme money that the federal government lost via Feeding Out Future. $3.5 million was the portion that Issa took for himself and will have to pay that much in restitution. As well as forfeit the properties he bought with fraudulently obtained money.
Shout out to the COVID-19 Fraud Task Force in this case.
Today’s Fraud of The Day is based on article “First Somali Immigrant To Chair Minneapolis Public Housing Agency Pleads Guilty To Wire Fraud Scheme” published by the Daily Caller on September 19, 2024
A Somalian immigrant to the U.S. who chaired the board of the Minneapolis Public Housing Authority (MPHA) pled guilty to federal wire fraud charges on Wednesday. Sharmarke Issa of Edina, 40, facilitated a money laundering operation and gained millions through fake vendors for the Feeding Our Future (FOF) scam, according to prosecutors, Kare11 reported. His four co defendants have trials set for November.
Issa’s actions caused the Minnesota Department of Health and FOF sponsors to expend over $7.4 million in funds from the Federal Child Nutrition Program, court documents said. Issa and the others charged ran shell companies to acquire money from the FOF operation, enabling them to purchase assets like real estate, prosecutors claimed, according to the outlet.