Luxury cars and private villas: See how Minnesota fraudsters spent millions intended for hungry kids
Luxury cars, private villas and overseas wire transfers: CBS News obtained dozens of files and photos that reveal how Minnesota fraudsters spent hundreds of millions of taxpayer dollars in one of the largest The COVID era fraud schemes.
The files document a spending spree in which the defendants, many of whom are of Somali descent, took taxpayer money intended to feed starving children and used it to buy cars, real estate and jewelry. Videos show them enjoying champagne at a lavish resort in the Maldives. In one text message, one defendant boasts: “You are going to be the richest 25 year old InshaAllah.” [God willing]”.
The documents present exhibits from a recent federal trial, many of which are being made public by CBS News for the first time. Exhibitions include:
- A confirmation email for a stay in an overwater villa with private pool at Radisson Blu Resort Maldives
- Lakefront Property in Minnesota
- Receipts showing wire transfers to China and East Africa
- First class tickets to Istanbul and Amsterdam
- A 2021 Porsche Macan
- Stacks of cash exchanged by text message between defendants
Exhibit 
At sentencing of defendant who used taxpayers’ money to buy cars and vacation in Maldives, 24 Abdimajid Mohamed Nur, U.S. District Judge Nancy E. Brasel chastised him, saying, “Where others saw a crisis and rushed to help, you saw money and rushed to steal.” » He was sentenced to 10 years in prison and ordered to pay nearly $48 million in restitution for his role in the fraud scheme.
Nur is one of dozens of people who siphoned off hundreds of millions of dollars in stolen public funds – with questions still lingering over where all the money went. The crime has drawn renewed attention in recent weeks: House Republicans last week launched an investigation into Minnesota’s Democratic Gov. Tim Walz’s handling of the cases and the Treasury Department. said he would investigate whether the money reached Al-Shabaab, an affiliate of Al-Qaeda, based in Somalia.
“A lot of money was transferred from the individuals who committed this fraud,” the Treasury secretary said. Scott Bessent said Sunday on “Face the Nation with Margaret Brennan.” Much of that money “has gone overseas, and we’re tracking that money to the Middle East and Somalia to see what it’s been used for.” Multiple federal investigators told CBS News there is no evidence that taxpayer money was funneled to al Shabaab, and prosecutors have yet to present evidence linking any of the fraudsters to terrorism.
“The vast majority of the money these people made went to purchase luxury items for themselves,” said Andy Luger, the former U.S. attorney who led the office that prosecuted Nur and other related frauds from 2022 until January. “There has never been any evidence that this money was used to finance terrorism, nor has there been any evidence of the intent of the 70 people we have charged.”
Exhibit 
A CBS News review of records shows the defendants transferred millions in stolen funds overseas, including to banks and businesses in China. Officials said it would be difficult to find the ultimate recipients of money funneled through China because it could pose a black hole for investigations.
The defendants also transferred nearly $3 million to accounts in Kenya.
Abdiaziz Shafii Farah36, who was sentenced to 28 years in prison last month for his role in the scheme, made six separate wire transfers worth more than $1 million to banks in China between February and July 2021, according to records reviewed by CBS News.
Exhibit 
In one text, Farah asked someone to “please send $1,000 to Mogadishu Bakara,” an apparent reference to a former Al Shabaab stronghold that was the site of the infamous 1993 “Black Hawk Down” incident, in which 18 U.S. service members died.
Farah owned and operated Empire Cuisine and Market, a Minnesota restaurant that contracted with the nonprofit Feeding Our Future to cook and provide meals for children. Prosecutors say he and his co-defendants billed the state $47 million, claiming they served 18 million meals in more than 30 locations — but didn’t distribute a single meal.
Hundreds of documents linked to Farah’s case detail how he spent money on luxury cars, investment properties at home and abroad, and first-class trips to exotic destinations including Istanbul and the Emirates. The defendants used seaplanes to travel to resorts in the Maldives, where in one video Farah is seen popping champagne in a villa with a private pool in July 2021.
Exhibit 
At Farah’s sentencing, a judge said her crimes were motivated by “pure and utter greed.” Farah’s lawyers did not respond to CBS News’ request for comment, including whether the proceeds of the fraud were diverted to Al Shabaab.
Democratic Rep. Ilhan Omar said Sunday on “Face The Nation with Margaret Brennan” that any link between allegations of fraud by members of the Somali community and terrorism would be an “FBI failure.”
“If there was a connection between the money they stole and terrorism, then it was a failure of the FBI and our justice system to uncover it,” Omar said.
Federal prosecutors have convicted 61 people so far in the fraud scandal spanning Minnesota. Further investigations are underway.
