A Minneapolis woman has pleaded guilty for her role in a massive fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic. Najmo M. Ahmed, 35, admitted to helping her husband, Said Ereg, submit fraudulent claims for over $4.2 million in federal funds.
According to court documents, Ahmed and Ereg ran a small grocery store called Evergreen Grocery and Deli. In April 2020, they enrolled the store in the Federal Child Nutrition Program as a food distribution site, falsely claiming to serve meals to children.
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Ahmed signed falsified meal count sheets, including one claiming the store served 3,250 children twice a day. Between April 2020 and April 2021, Evergreen Grocery and Deli fraudulently claimed to have served over 1.4 million meals.
Ahmed admitted to knowing that the money deposited into her account by her husband was from illegal activity. She laundered over $1.3 million in federal funds through her personal bank accounts, transferring money to foreign companies and using it to fund a lavish lifestyle with purchases from luxury brands like Burberry and Louis Vuitton.
“This defendant exploited a program designed to feed children in need during a pandemic,” said Acting U.S. Attorney Lisa D. Kirkpatrick. “This was a blatant abuse of taxpayer dollars, and we are committed to holding accountable those who defrauded these vital programs.”
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Ahmed pleaded guilty in U.S. District Court and will be sentenced at a later date. The case was investigated by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
This case is part of a larger investigation into the $250 million fraud scheme that targeted the Federal Child Nutrition Program during the pandemic. Authorities continue to pursue those who exploited these programs for personal gain.
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