Feeding Our Future: Rochester man pleads guilty to fraud, money laundering
First guilty verdicts in Feeding our Future trial
Five out of seven people tried in federal court have been found guilty on multiple counts related to the Feeding Our Future fraud scandal on Friday. More accused conspirators are set to stand trial in the future.
ST. PAUL, Minn. (FOX 9) - A Rochester man pleaded guilty to charges stemming from his involvement in the $250 million Feeding Our Future fraud scheme after claiming to serve 2,000 to 3,000 daily breakfasts and lunches to children from October 2020 through January 2022.
Another Feeding Our Future guilty plea
Big picture view:
Sharmake Jama, 37, pleaded guilty on Wednesday to one count of wire fraud and one count of money laundering for "fraudulently misappropriating millions of dollars in federal child nutrition program funds", according to a news release from the U.S. Attorney's Office, District of Minnesota.
Court documents state that Jama, along with accused ringleader Aimee Bock and Salim Ahmed Said, applied for Jama’s Brava Restaurant's enrollment in the Federal Child Nutrition Program through the sponsorship of the Feeding our Future nonprofit.
Said was also the co-owner of Safari Restaurant in Minneapolis, another business that prosecutors say was involved in the fraudulent practices.
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By the numbers:
Jama admitted in the plea agreement yesterday that he claimed the restaurant served more than 1.7 million meals in Rochester, which was "substantially higher than the actual number of meals served," according to the news release.
This resulted in Feeding Our Future paying out more than $5.3 million in federal child nutrition program reimbursements for meals that were supposed to be served to children, but weren't.
That includes Jama's Brava Restaurant receiving $4.3 million from Feeding Our Future and $900,000 from Safari Restaurant, according to the news release.
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Jama also admitted to creating shell companies with co-conspirators, through which they reportedly dispersed funds from the federal child nutrition program.
The news release states that on Jan. 7, 2021, Said paid to register six different shell companies with the State of Minnesota, including Mumu LLC for Jama. Jama then reportedly deposited $872,230 in misappropriated Federal Child Nutrition Program funds into the Mumu LLC bank accounts.
Jama spent the stolen funds on a new GMC Sierra for $88,000 as well as $500,000 on real estate properties in Rochester and Rosemount, the release says.
Jama's sentencing date has not yet been set.
The Source: A news release from the Office of Minnesota Attorney General Kieth Ellison's Office.