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Published on January 25, 2025
Bloomington Fraudster Caged for 17 Years in $250M Scam Exploiting Kids' Food ProgramSource: Unsplash/Colin Watts

A Bloomington man's long con has reached its final chapter as he faces 17 years in prison for his hand in a $250 million fraud exploiting a federal child nutrition program. Acting U.S. Attorney Lisa D. Kirkpatrick announced the stiff sentence for Mukhtar Mohamed Shariff, 34, who also received a mandate to pay back nearly $$47,920,514 in restitution. Shariff, as reported by the U.S. Attorney's Office, wore the hat of CEO at Afrique Hospitality Group and misdirected millions in government funds that should have gone to feeding underserved children during the pandemic.

Shariff's ignominious role in this elaborate scheme was laid bare in a seven-week trial, culminating in a conviction on multiple counts including conspiracy to commit wire fraud and money laundering. "The defendant committed a brazen fraud that shamelessly stole taxpayer money intended to feed children during a global pandemic. He lined his pockets, here and abroad, with millions," Kirkpatrick stated. This operation leveraged falsified meal count sheets, kickbacks, and even fake attendance rosters to drain the federal well dry. The COVID-19 pandemic had loosened certain Federal Child Nutrition Program requirements, an opportunity the defendants capitalized on with a voracious appetite for ill-gotten gains.

Routine operations of the Federal Child Nutrition Program, normally conducted with oversight to ensure only those in genuine need benefit, became victim to Shariff's machinations. The U.S. Department of Agriculture (USDA) coordinates with state-level bodies, such as the Minnesota Department of Education (MDE) in this case, to reimburse meals at approved sites. A sponsor must validate each site's application, monitor activity, and process claims for reimbursement, a system intended to feed the young but instead fed the greed of individuals like Shariff during a time of widespread suffering.

At the sentencing, Judge Nancy E. Brasel pointed out the "staggering lack of respect for the law" that Shariff's conduct demonstrated and noted the public's justified outrage at the scam's audacity. The FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service played key roles in untangling the web woven by Shariff and his accomplices. Persecuting the case were Assistant U.S. Attorneys for the District of Minnesota, who laid bare the gritty details of the conspiracy amid the courtroom proceedings.