MN fraud: Feeding our Future defendant now facing day care fraud charges

MN fraud: FBI raids 22 sites, several day cares

Federal agents from the FBI and Department of Homeland Security executed search warrants at nearly two dozen Twin Cities businesses in a fraud probe. FOX 9 Crews observed agents entering several locations, including child care centers. Reporter Karen Sculling has the latest. 

MINNEAPOLIS (FOX 9) - The head of a Minneapolis day care that was featured in the controversial Nick Shirley video exposing day care fraud in Minnesota is now facing federal charges for fraud.

Day care owner charged

What we know:

Fahima Egeh Mahamud was charged Wednesday with wire fraud and conspiracy to defraud the United States.

Prosecutors say Mahamud was the CEO of Future Leaders Early Learning, a day care in Minneapolis near George Floyd Square. Authorities say Mahamud enrolled the day care into the federal child nutrition program through Feeding our Future and falsely claimed to serve thousands of meals at her childcare center.

At the same time, prosecutors claim Mahamud submitted false paperwork to Minnesota's Child Care Assistance Program, claiming that she had properly collected co-payment needed to receive reimbursements from the government. In reality, prosecutors say she hadn't done that.

In total, prosecutors say the day care pocketed more than $4.6 million from CCAP plus an additional $850,000 from the federal child nutrition program.

The other side:

Mahamud was charged earlier this year for her role in the Feeding our Future scheme. She was charged Wednesday for the day care aspect of the fraud.

The backstory:

In December, after Shirley's video went viral, the State of Minnesota said they were performing checks at the day cares featured in the influencer's video.

Minnesota Department of Children, Youth and Families (DCYF) Commissioner Tikki Brown said all 10 day cares had been visited at least once by the state over the last six months as part of standard licensing checks.

State records show Future Leaders Early Learning Center closed in January.

Dig deeper:

Future Leaders Early Learning Center did receive an inspection in November 2025, according to state records. The day care was cited for cleanliness issues, rugs in disrepair, and the program wasn't "operating within the terms of its license."

Another day care owner facing charges

Dig deeper:

Federal prosecutors also brought charges against another day care owner on Wednesday.

Jillaine Mertens, who ran three day care centers in Minnesota, including Creative Stars Academy in Rochester, Creative Stars in Kasson, and Tree of Life in Ramsey, is charged with wire fraud.

Investigators claim Mertens inflated hours worked by staff and made false claims about staff representation at her day cares in claims submitted to Minnesota's Department of Children, Youth and Families.

Local perspective:

The U.S. Attorney's Office in Minnesota also brought charges against two other men for fraud against Minnesota's housing stabilization program.

Mustafa Dayib and Abdulbasit Ibrahim are charged with conspiracy to commit health care fraud.

They are accused of submitting false claims to Medicaid for work they never performed.