Minnesota fraudster ordered to pay $2.5M for child food program scheme
MN awarded $2.5M in False Claims Act case
The State of Minnesota has been awarded $2.5 million in damages and penalties in a False Claims Act. FOX 9 Investigator Paul Blume has more.
ST. PAUL, Minn. (FOX 9) - A Minnesota man has been ordered to pay millions after a jury found he defrauded a federal food program meant to help hungry children during the pandemic.
READ MORE: Medicaid in Minnesota: Fraudsters owe millions but pay back little
State secures major civil penalty in food program fraud
What we know:
A jury found that Emaldeldin Ibrahim submitted more than 90,000 false claims totaling $188,351 in bogus reimbursements over three months in 2021.
The money was intended for meals and snacks for hungry children.
The Minnesota Attorney General’s Office pursued the case in civil court under the state’s False Claims Act, which allows for penalties beyond the amount stolen.
This week, a Hennepin County court judge approved nearly $2.5 million in damages, civil penalties, attorney fees and court costs—almost 13 times the amount of the original theft.
READ MORE: Minnesota fraud: Man liable for $188K in false food program claims
Attorney General Keith Ellison called the judgment a "wakeup call" for those thinking about defrauding Minnesota.
"Not only will you face criminal consequences, but the Minnesota Attorney General’s Office will pursue you under civil law to recover Minnesota taxpayers’ hard-earned dollars," Ellison said in a statement to the FOX 9 Investigators.
Same food program fraud as Feeding our Future
Dig deeper:
The fraud took place during the pandemic and is connected to the same federal food programs targeted in the larger Feeding Our Future scheme.
The Attorney General’s office pursued the case after it was tipped off to potential fraud by Ibrahim from the Sudanese Community Association and Wells Fargo.
"Emadeldin Ibrahim stole our tax dollars while pretending to feed hungry children during a pandemic," Ellison said in the statement, calling Ibrahim’s actions disgraceful. "Thanks to this $2.5 million judgment, Mr. Ibrahim will be paying back the people of Minnesota for quite some time."
Big financial penalties, little recovery
The backstory:
The FOX 9 Investigators have tracked similar cases and found that the state often struggles to recover restitution from those convicted.
Analysis of dozens of convictions by the Attorney General’s Medicaid Fraud Control Unit since 2020 revealed that defendants owed more than $13 million in restitution, but the state had collected less than 18% of that amount.
In some situations, defendants were released from probation without making significant payments.
Ellison has previously told the FOX 9 Investigators the state’s fraud recovery laws need to be strengthened.
"For the person who just doesn't care and is trying to get away with wrongdoing, I think we need stronger medicine for people like that," stated Ellison.
The Source: This story uses information gathered by FOX 9 investigative reporter Paul Blume and previous FOX 9 reporting.