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Minnesota Man Pleads Guilty to $250 Million Child Nutrition Program Fraud in COVID-19 Relief Scandal

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Published on March 08, 2025
Minnesota Man Pleads Guilty to $250 Million Child Nutrition Program Fraud in COVID-19 Relief ScandalSource: Google Street View

In a case illustrating the abuse of federal funds, a Minnesota man has admitted to significant fraud in the Feeding Our Future program, which was intended to provide nourishment to children during the health crisis brought on by COVID-19. The U.S. Attorney's Office disclosed that Abdinasir Mahamed Abshir, 33, of Lakeville, entered a guilty plea for his involvement in a scheme defrauding the federal child nutrition program of over $250 million, according to court documents.

Court records show that between April 2020 and January 2022, Abshir falsely claimed his operation, Stigma-Free Mankato, was dishing out meals to thousands of kids daily. His enterprise, nestled in a modest-sized city in Southwestern Minnesota, reported feeding rates that soared as high as 3,000 children each day, utilizing a small eatery named J's Sambusa as the supposed distribution point. However, Abshir's engagement went beyond mere inflated numbers. He and collaborators perpetrated their fraud with manufactured meal counts, attendance sheets, and invoices, a far cry from the actual assistance these funds were meant to administer.

The money, intended to fuel the growth and well-being of children, was instead diverted to the pockets of Abshir and his co-conspirators. The defendant even went as far as to set up shell companies, like Horseed Management, to siphon off the ill-gotten gains that included, for a time, a shiny 2021 Range Rover—since confiscated by the government. In total, over $5.4 million was funneled through the ruse of Stigma-Free Mankato, based entirely on bogus claims.

Abshir also waded into obstructive waters when he sought to tamper with a witness in the criminal proceedings against his peers on February 18, 2025. He approached a cooperating witness right outside the courtroom and suggested a private conversation in the bathroom—an act that has led to an obstruction of justice enhancement for his incoming sentence. This legal maneuver was acknowledged by Abshir during his guilty plea before Judge Nancy E. Brasel in the U.S. District Court, with a sentencing date pending.

The team of Assistant U.S. Attorneys Joseph H. Thompson, Matthew S. Ebert, Harry M. Jacobs, and Daniel W. Bobier are prosecuting the case, while Assistant U.S. Attorney Craig Baune handles asset seizure and forfeiture.