Kenyan fugitive in US arrested over Sh142m fraud

A Kenyan national who spent nearly 10 months on the run in Kenya has been arrested in connection with an alleged Sh142.7 million ($1.1 million) fraud involving a United States government programme that funds meals for children.

Shaakir Mohamud Ibrahim, 54, of Pelican Rapids, Minnesota, was arrested on September 30 in the US, a day after being indicted on charges of conspiracy to commit wire fraud, conspiracy to commit money laundering and money laundering, according to the US Department of Justice.

"After spending nearly 10 months as a fugitive in Kenya. On September 29, Ibrahim was charged by indictment with conspiracy to commit wire fraud, conspiracy to commit money laundering and money laundering in connection with his role in a $1.1 million scheme to defraud the Federal Child Nutrition Program through Feeding Our Future,” the US Department of Justice said on Friday in a statement.

Prosecutors allege that Ibrahim and his co-conspirators fraudulently obtained reimbursements through the Federal Child Nutrition Programme by claiming to provide thousands of meals to children daily at two locations in Minnesota.

The alleged scheme involved Bilaal Mosque in Pelican Rapids and the Multicultural Resource Center (MRC) in Moorhead. For four months, the operators claimed to serve more than 3,000 meals to children daily at each location.

Investigators allege that the organisations submitted false meal counts and attendance rosters to Feeding Our Future, the nonprofit that sponsored their participation in the federal nutrition programme.

“For four months, Ibrahim and his co-conspirators claimed to be serving more than 3,000 meals to children every day, in the small town of Pelican Rapids, Minnesota, through Bilaal Mosque in Pelican Rapids, and another 3,000 meals per day at the Multicultural Resource Center in Moorhead, Minnesota.  As part of the scheme, Bilaal and MRC submitted fake meal counts and rosters to Feeding Our Future,” the department said.

After receiving more than Sh142.7 million ($1.1 million) in reimbursements, Ibrahim allegedly laundered his share through large cheques paid to himself and his son. He is also accused of using some of the money to purchase property in Kenya and a car.

“Ibrahim laundered his share of the proceeds through large check payments to himself and his son, as well as the purchase of a property in Kenya and a car,” it added.

Assistant US Attorneys Rebecca E. Kline, Matthew C. Murphy, and Austin L. Bowyer are prosecuting the case. Investigations were conducted by the Federal Bureau of Investigation, the Internal Revenue Service's Criminal Investigation division and the US Postal Inspection Service.

The charges come as American authorities intensify efforts to pursue alleged fraudsters operating across borders, including suspects accused of exploiting public assistance programmes and stealing the identities of US citizens to obtain government funds.

Acting Deputy Attorney General Trent McCotter said the US government was stepping up enforcement against those suspected of defrauding taxpayer-funded programmes.

“No one stealing from taxpayer-funded programs is safe,” Mr McCotter said in a statement announcing a broader fraud enforcement operation in Minnesota on October 30.

US Attorney Daniel N. Rosen for the District of Minnesota said the authorities were committed to protecting public funds intended for vulnerable people.

“These defendants stole money meant for the vulnerable, and they will be brought to justice,” Mr Rosen said.

Ibrahim's case is linked to the wider Feeding Our Future scandal, one of the largest alleged fraud schemes involving federal child nutrition funding in the United States.

The programme was designed to reimburse organisations providing meals to children during the Covid-19 pandemic. Prosecutors say some operators exploited the emergency funding arrangements by submitting inflated or fictitious meal counts and claiming reimbursement for food that was never served.

Feeding Our Future sponsored numerous meal sites and received administrative payments linked to the claims. Federal prosecutors alleged that the nonprofit and participating operators used fraudulent records to obtain hundreds of millions of dollars in public funds.

The scandal triggered a major federal investigation in Minnesota, resulting in dozens of indictments and prosecutions involving nonprofit officials, restaurant operators and other people accused of submitting false claims or helping move the proceeds.

In September 2022, federal prosecutors announced charges against 47 defendants in connection with the alleged scheme, describing it as a $250 million fraud involving money intended to feed children.

Subsequent prosecutions expanded the number of defendants as investigators pursued individuals accused of operating fraudulent meal sites, submitting false reimbursement claims and laundering proceeds.

Several defendants have pleaded guilty or been convicted, while other cases have continued through the courts. The prosecutions have sought to establish how organisations entrusted with delivering meals to vulnerable children allegedly exploited the funding system for personal gain.

Ibrahim's indictment adds another case to the investigation, with prosecutors alleging that the scheme extended beyond Minnesota to the purchase of property in Kenya using proceeds from the alleged fraud.

He faces charges of conspiracy to commit wire fraud, conspiracy to commit money laundering and money laundering. The charges are allegations, and he is presumed innocent unless proven guilty in court.

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