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Nine more charged in latest wave of Feeding Our Future federal fraud case

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A group of relatives and a married couple who ran a Minneapolis grocery are among the latest to be charged in the sprawling Feeding Our Future food fraud case, now bringing the total number of defendants to 70.

In a pair of indictments returned by a grand jury late last month and unsealed Monday, one alleges a scheme perpetrated by a half-dozen relatives who helped obtain and launder millions of dollars in fraudulent proceeds intended to help feed needy children during the COVID-19 pandemic.

According to the new charges, a consultant for the Feeding Our Future program named Ikram Yusuf Mohamed started multiple sites that claimed to serve food to children under Feeding Our Future’s sponsorship. She allegedly put the sites in the name of her relatives to conceal her involvement, solicited and received kickbacks from people and companies involved in the scheme and used her IM Consultation LLC to receive and launder kickback payments and fraud proceeds.

Mohamed is being charged alongside her mother, husband, sister and two brothers in the new indictment. Co-defendants include Suleman Yusuf Mohamed, Aisha Hassan Hussein, Sahra Sharif Osman, Shakur Abdinur Abdisalam, Fadumo Mohamed Yusuf and Gandi Yusuf Mohamed. All nine were indicted on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering, among other charges that include federal programs bribery and other individual counts.

Attorneys have not yet been publicly listed for any of the defendants named in the two indictments unsealed Monday.

The charges outline similar a similar plot alleged against many of those initially charged when federal prosecutors began rolling out indictments in September, 2022. Purporting to operate meal sites between Minneapolis, Edina and Hopkins, the co-defendants in one indictment unsealed Monday are accused of falsely claiming to serve thousands of children daily – while also submitting fake rosters of children served to the state.

Multiple co-defendants allegedly funneled money from the scheme to Ikram through Afrique Hospitality Group, owned by Mukhtar Mohamed Shariff and used it to launder the fraudulently obtained federal funds.

A separate indictment unsealed Monday outlined similar charges against a husband and wife who owned and worked at a grocery and deli in Minneapolis. Said Ereg owned Evergreen Grocery and Deli, which also operated a food site under Feeding Our Future’s sponsorship. His wife, Najmo Ahmed worked for the business and received payroll payments from Feeding Our Future.

According to charges, Evergreen claimed to both serve as a food distribution site but also offer “homework help/mentoring” on its application to participate in the federal food aid program.

Starting in April 2020, before it received official enrollment in the program, Evergreen Grocery and Deli sent meal count sheets claiming to have served thousands of meals that month — later claiming at times to serve more than 3,000 meals, twice a day, seven days a week.

“However, Evergreen Grocery and Deli only served a fraction of those meals,” the indictment reads.

Based on those claims, the indictment said, the grocery store received more than $4.2 million in payments for purportedly serving meals.

Instead, the charges allege that the couple transferred much of the money to personal accounts in their own names and made purchases from Burberry, Louis Vuitton and Canada Goose. They also transferred more than $2.5 million to foreign textile and trading companies, and paid more than $100,000 in kickbacks to Abdikerm Eidleh, a Feeding Our Future employee in exchange for sponsorship, the charges allege.

Such payments were often labeled as fees for “consulting” or loan repayments.

The new charges come days after a Burnsville grocery store owner was charged with wire fraud in the case. Hoda Ali Abdi, who owned Alif Halal LLC, was charged Thursday in federal court via a felony information, a charging mechanism through which a defendant waives the right to a grand jury. Prosecutors said Abdi received nearly $1.3 million from the federal meals programs for needy children. The money came through her work as a food vendor to distribution sites and through her own meals program, prosecutors allege.

Prosecutors said she provided fake invoices for substantial amounts of food but distributed little to no food.

“Hoda Abdi is a very good person. She has faced and overcome many hardships in her life,” her attorney, Thomas Kelly, said. “Unfortunately she has made mistakes recently in connection with this scheme, for which she is truly contrite. We hope to demonstrate that she had little to gain or gain very little, and loses quite a bit.”

Her first court hearing is scheduled for April 11.

In January 2022, the FBI raided Feeding Our Future, a St. Anthony nonprofit that oversaw hundreds of meal distribution sites in Minnesota. The operation is at the center of what prosecutors say is one of the largest pandemic-related fraud cases in the country, totaling more than $250 million.

The federal program reimburses schools and nonprofits for providing meals to low-income children after school and during the summer. According to court documents, Abdi’s store was a food vendor for sites sponsored by Feeding Our Future and a St. Paul nonprofit.

So far, 17 people have pleaded guilty in the case. The first trials are slated to begin this spring.

Staff writer Kelly Smith contributed to this report.



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Former Medtronic consultant gets 18 months federal prison for insider trading

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A former Medtronic consultant received an 18-month prison sentence this week for his role in a scheme linked to the $1.6 billion acquisition of an Israeli medical device company in 2018.

A federal jury in February convicted Doron “Ron” Tavlin, 69, of Minneapolis, of one count of conspiracy to engage in insider trading and 10 additional counts related to securities fraud. That same jury found David Jay Gantman, 58, of Mendota Heights, not guilty of all charges against him. A third defendant — Afshin “Alex” Farahan, 57, of Los Angeles — pleaded guilty in 2022 and has yet to be sentenced.

“His crime was cynical and brazen. It was also reckless,” Assistant U.S. Attorney Matthew Ebert wrote in a memo calling for a 3-year prison term. “Tavlin’s conduct had the potential to blow up a deal that a team of executives and financial advisers had been diligently negotiating for months.”

Tavlin is now scheduled to self-surrender Jan. 5 to begin his prison term, which will be followed by 320 hours of community service.

According to the evidence presented at trial, Tavlin learned about a secret, pending acquisition by Medtronic of Mazor Robotics, where he worked as vice president of business development, in 2018. Tavlin also previously worked as a consultant to the Ireland-based Medtronic, which also has a headquarters in Fridley.

Tavlin illegally tipped off Farahan, his friend, about news of the imminent acquisition and told him to keep the news secret. Farahan knew the deal would likely result in a boost to Mazor’s stock price and quickly bought more than $1 million of the company’s stock throughout August and September 2018. Medtronic announced plans to acquire Mazor, which specialized in robotics for spinal procedures, in September 2018 and the deal closed three months later.

Prosecutors said Farahan netted more than $245,000, and Gantman made $255,000 in profit by selling the securities quickly after the deal was publicized. Farahan paid Tavlin for the secret information about the pending deal — including a $25,000 kickback about a year later —according to prosecutors.

U.S. District Judge Donovan Frank, who sentenced Tavlin Monday, also ordered Tavlin to pay a special assessment fee of $1,100 – or $100 per each count. Frank did not impose a fine.



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Charges detail assault in Minneapolis that led to shooting rampage, killing one in Kandiyohi County

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Another friend of the ex-girlfriend arrived to help. He pulled up in a car as the group exited the apartment and Matariyeh immediately pointed a gun at him before pounding on the windshield with the gun. Everyone fled as Matariyeh ran back inside the apartment.

The two men met in a parking lot before attempting to return to the apartment. That’s when they looked up and saw Matariyeh on the balcony. Matariyeh immediately began firing multiple shots at them as they took cover behind parked cars.

It was around this time that Minneapolis police officers arrived and made contact with Matariyeh’s ex-girlfriend. She believed he was still inside the apartment, but officers later learned that he had fled. They reached him on the phone. He told officers he was going to kill innocent people if he couldn’t speak with his ex-girlfriend or see his daughter, who was at daycare at the time. He later told police negotiators that “he wanted to go out by ‘suicide by cop.’”

All the while, Matariyeh was speeding westbound.

Police officers pursued him near Cosmos in Meeker County after being alerted that Matariyeh might have stolen another vehicle at gunpoint in Carver County.

Around 2 p.m. he pulled into the rural driveway of Peter Mayerchak in Lake Lillian. Mayerchak, who was in his yard placing hay over his septic mound, went and greeted Matariyeh, who shot him in the chest.



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DFL’s last-minute push to keep their trifecta

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Mixing progressive dreams with dire warnings, a group of DFL leaders riled up a group of volunteers in St. Paul on Thursday morning, urging them to push on through the day’s freezing rain and fatigue in the remaining days before the election.

Several elected officials including Lt. Gov. Peggy Flanagan and U.S. Sen. Amy Klobuchar told the group of about 150 campaign staffers, volunteers and union members about how meaningful their work is to keeping DFL control of the Legislature, as the electeds start a statewide bus tour to turn out votes.

“We are here to keep our trifecta here in Minnesota,” U.S. Rep. Ilhan Omar told volunteers on Thursday. “We’ve got five days, people!”

On the Republican side, House Minority Leader Lisa Demuth, R-Cold Spring, said earlier this month that the House Republican Campaign Committee had raised a record $2.7 million ahead of the election and she said Republicans have also set records in volunteering and door-knocking as they work to break DFL control.

Minnesota Democrats hold a rally before starting a bus tour around the state to get voters excited, including Rep Ilhan Omar, Sen Amy Klobuchar, Lt. Gov. Peggy Flanagan, House Speaker Melissa Hortman, Senate Majority Leader Erin Murphy, Rep Betty McCollum and Sen Tina Smith on Thursday. (Glen Stubbe/The Minnesota Star Tribune)

“Republicans have the momentum and resources heading into the final stretch to win the majority and restore balance to Minnesota,” Demuth said in a statement. “Minnesotans are ready to move on from the expensive two years of Democrat one-party rule.”

House Speaker Melissa Hortman, DFL-Brooklyn Park, said she thought voters preferred action to the gridlock of divided government. “They’re looking for people who can get things done,” she said.

These last-minute get-out-the-vote efforts come as Democrats around the country push to keep control of state legislative chambers and try to flip a few statehouses that Republicans hold by just a few seats.

The Democratic Legislative Campaign Committee, the arm of the national Democratic party that works on statehouse races across the country, has spent $500,000 on Minnesota races this year, including House races and the state Senate contest.



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