Three individuals have recently admitted guilt in a vast fraud operation that exploited Minnesota's child nutrition programs, reports the U.S. Attorney's Office of Minnesota. Mahad Ibrahim, Hamdi Hussein Omar, and Hibo Salah Daar pleaded guilty to wire fraud and money laundering charges in a case that has swiftly evolved into a crackdown on a statewide fraud network that siphoned off millions in federal funds intended for the needy.
Acting U.S. Attorney Joseph H. Thompson highlighted the extent of the team's efforts: "For years, these elite federal agents and forensic accountants have tracked stolen money, cut through layers of deceit, and exposed a sprawling network of shell companies and fake meal claims." Thompson proudly added, "Their pursuit of justice has been relentless." In sum, over 50 convictions have been secured in this sprawling investigation, which uncovered sham operations falsely claiming to serve vast quantities of meals to children.
Mahad Ibrahim, aged 46, was the operator of ThinkTechAct Foundation and pleaded guilty to creating phantom meal service sites that misused federal funds. Similarly, 29-year-old Hamdi Hussein Omar's agreement to plead guilty shed light on how a small market became the front for claims of serving half a million meals that were never provided. Lastly, Hibo Salah Daar, with her control over Northside Wellness Center Corporation, admitted to filing false claims of serving tens of thousands of meals, supplementing those claims with fake invoices, and bribing employees to perpetuate the fraud.
These pleas represent a significant success for federal agents and their counterparts and "marks an extraordinary achievement by our team and our law enforcement partners,” Thompson emphasized. Each of these individuals admitted to their roles in intricate schemes that defrauded a program designed to feed children in need, with losses mounting to millions in taxpayer dollars. Mahad pleaded guilty on July 24, 2025, and Omar and Daar followed suit on August 1, 2025, all before Judge Nancy E. Brasel. Their sentencing will be scheduled at a later date.
FBI Special Agent in Charge Alvin M. Winston Sr. acknowledged the tenacity of the FBI’s efforts: “The Federal Bureau of Investigation takes immense pride in its pivotal role in securing 50 convictions to date, and we remain steadfast in our commitment to holding accountable those who illicitly appropriate funds meant for the nourishment of underprivileged children.” The investigation, as reported by the U.S. Attorney's Office, was a joint operation involving not just the FBI but also the IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
As the legal proceedings continue, the work of the federal agents is proving instrumental in not only holding the guilty to account but also in sending a clear message that such exploitation of welfare programs will meet with stringent scrutiny and justice. The guilty pleas are a reminder of the high costs of white-collar crime both to public funds and public trust.
