Minnesota has been rocked by a large-scale social-services fraud scandal linked to Somali immigrants, involving more than $1 billion in stolen public funds over several years, much of it tied to programs expanded during the COVID-19 pandemic.
Federal prosecutors say dozens of individuals set up shell companies that billed the state for services never provided, including meals for children, housing assistance, and autism therapy. Some of the money is believed to have flowed to terrorist groups such as al-Shabaab.
To date, 59 people have been convicted and 86 charged across multiple schemes. The most prominent case involved the nonprofit Feeding Our Future, which prosecutors described as the largest pandemic-relief fraud scheme in U.S. history. Most defendants are American citizens of Somali descent.
State officials initially treated the fraud as isolated abuse during a public-health emergency. Investigators later concluded that weak oversight, rapid disbursement of funds, and political sensitivities allowed the schemes to expand. Internal warnings were raised early, but state agencies continued approving reimbursements after facing threats of lawsuits and accusations of racism from providers.
Prosecutors and former investigators said elected officials were reluctant to intervene forcefully out of concern about backlash from Minnesota’s Somali community, which has become an influential voting bloc.
A City Journal report documented a decade of fraud schemes tied to Minnesota’s Somali community, alleging that billions in taxpayer funds were stolen and that some money was sent overseas, including to individuals connected to al-Shabaab in Somalia. The report described organized operations that exploited Minnesota’s welfare programs and used accusations of racism to deter scrutiny until prosecutors brought cases forward.
The U.S. Treasury is expanding its investigation into businesses connected to the Minnesota social-services fraud scandal, according to Treasury Secretary Scott Bessent. Treasury will issue a geographic targeting order increasing financial reporting requirements for money services businesses, allowing regulators to better track cash flows and flag suspicious transactions. The information will be shared with the Financial Crimes Enforcement Network to generate investigative leads, particularly involving funds sent to high-risk regions such as Somalia.
Officials say much of the stolen money was moved through money services businesses rather than traditional banks, with some funds allegedly sent overseas. Treasury personnel are examining these businesses on the ground, while FinCEN is expected to issue formal notices of investigation.
Treasury is also probing allegations that some funds may have been diverted to al-Shabaab, though no conclusions have been announced. Bessent said the investigation followed President Trump’s designation of Minnesota as a hub of fraudulent money laundering activity under Democratic Governor Tim Walz.
The Feeding Our Future case demonstrates how the fraud was carried out. Aimee Bock, the nonprofit’s founder and executive director, was convicted of wire fraud, conspiracy, and bribery after falsely claiming her organization served 91 million meals and fraudulently receiving nearly $250 million.
Salim Said, owner of Safari Restaurant, was convicted alongside Bock after his business jumped from about $600,000 in annual revenue to claiming it served 5,000 meals a day within months. Abdiaziz Shafii Farah, owner of Empire Cuisine, was convicted of wire fraud, bribery, money laundering, and passport fraud.
Mukhtar Shariff, CEO of Afrique Hospitality Group, was sentenced to 17.5 years in prison after pocketing $1.3 million, while Abdimajid Nur received a 10-year sentence for operating the Nur Consulting shell company and laundering approximately $900,000. Abduljabar Hussein obtained $8.8 million through the Shamsia Hopes nonprofit, using $173,438 to pay off his mortgage and $93,250 to purchase a 2021 Porsche.
Najmo M. Ahmed helped run Evergreen Grocery and Deli, which received $4.2 million and claimed to have served more than 1.4 million meals, including one filing asserting the business fed 3,250 children twice daily during a single week in January 2021.
These discoveries come in the wake of investigations revealing widespread immigration fraud among Somali immigrants, including asylum application fraud involving false statements about prior immigration attempts in other countries, family-relationship fraud through fictitious spouses or children claimed under the Diversity Visa Program, the concealment of family ties including relatives with terrorist connections, and document fraud involving false information provided to immigration officials about identity and family status.
President Trump effectively halted new Somali immigration by suspending the U.S. Refugee Admissions Program, imposing a travel ban on Somalia, and setting the FY 2026 refugee cap at a historic low of 7,500, bringing Somali refugee admissions to a near standstill. His administration also ordered a sweeping review of refugees admitted under the Biden administration, placing green-card applications on hold and re-interviewing refugees to determine whether they ever qualified for admission. Refugees found ineligible will have their status terminated and may face deportation, with no right to appeal.
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