This browser does not support the Video element.
MN fraud: 6th family member pleads guilty $14M scheme
Gandi Mohamed pleaded guilty to money laundering for his role in a family enterprise that defrauded the federal child nutrition program of $14 million through Feeding Our Future. FOX 9's Bill Keller reports.
MINNEAPOLIS (FOX 9) - The final member of a family’s multi-million-dollar Feeding our Future fraud scheme pleaded guilty in federal court on Thursday.
Change of plea hearing
The backstory:
Gandi Mohamed, who was indicted alongside five family members for their alleged roles in the scheme, entered a guilty plea on Thursday. He initially rejected an offer and opted to take his case to trial, which was scheduled for April. The five other family members pleaded guilty in March.
Prosecutors say the family fraudulently obtained $14 million from the childhood nutrition program by falsely claiming to have served millions of meals to children in need. Investigators allege the family then laundered the money through fraudulent real estate and rental schemes and falsified consultant work.
Mohamed owned GAK Properties LLC and GIF Properties LLC, which prosecutors say were used to receive and launder more than $1.1 million in federal funds. He faced charges of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering.
Mohamed pleaded guilty to one count of money laundering, which carries a sentence of up to 10 years in prison. Under the terms of the plea agreement, prosecutors are recommending that he spend 30 to 37 months behind bars and pay nearly $1.4 million in restitution.
His sentencing will take place at a later date.
Sentencing in Feeding Our Future case
Dig deeper:
Meanwhile, Abdullahe Jesow, who previously pleaded guilty in the Feeding Our Future case, was sentenced on Wednesday to three and a half years in prison, followed by two years of supervised release. He has also been ordered to pay $866,000 in restitution.
The first charges in the Feeding Our Future scheme were filed in 2022. The case involves allegations of more than $250 million stolen from pandemic relief funds intended to feed children. Since then, 79 people have been charged, with most either pleading guilty or being convicted at trial.
The Source: This story uses previous FOX 9 reporting and court documents.