Two Feeding Our Future Defendants Sentenced for Money Laundering in $250 Million Fraud Scheme
Two defendants in the Feeding Our Future fraud scheme have been sentenced for wire fraud and money laundering as prosecutors continue to secure convictions arising from the US$250 million theft of federal child-nutrition funds in Minnesota.
The U.S. Attorney’s Office for the District of Minnesota said on August 27, 2026 that Abdihakim Ali Ahmed, 40, was sentenced to 54 months in prison for wire fraud and money laundering, while Ahmed Abdullahi Ghedi, 35, received 65 months for the same offences. Both were sentenced on August 26 before U.S. District Judge Nancy E. Brasel. A third defendant, Ahmed Sharif Omar-Hashim, was sentenced to 36 months for wire fraud.
Shell companies and diverted nutrition funds
Court records show Ahmed and Ghedi were connected to ASA Limited, which claimed to operate a child-nutrition site at Gurey Deli in St. Paul. Within weeks of entering the Federal Child Nutrition Program, the site was claiming to serve 2,000 to 3,000 children per day. Prosecutors said the group ultimately submitted fraudulent claims representing more than 1.6 million meals.
Ahmed admitted that fraud proceeds were transferred through shell entities. More than US$1 million in Federal Child Nutrition Program funds moved through Five A’s Projects LLC, while other funds were transferred to 1130 Holdings Inc. Ahmed used proceeds to acquire the former Kelly’s 19th Hole bar and restaurant in Brooklyn Park and a 2022 Mini Cooper, both subject to forfeiture. Prosecutors said Ahmed and his co-conspirators caused approximately US$7.3 million in losses and that Ahmed paid more than US$49,000 in bribes and kickbacks to a Feeding Our Future employee.
Ghedi used another shell entity, AG Limited LLC, to conceal the source and ownership of fraud proceeds. Between December 2020 and November 2021, more than US$2 million in child-nutrition funds were deposited into AG Limited accounts. He used the money to buy more than US$245,000 in vehicles, fund more than US$200,000 in credit-card spending, and transfer approximately US$560,000 to Cosmopolitan Business Properties LLC toward the purchase of a Minneapolis mansion and adjoining property. Prosecutors attributed approximately US$7.2 million in program losses to Ghedi and his co-conspirators.
Ahmed and Ghedi are now the 24th and 25th defendants sentenced in the wider Feeding Our Future case. The investigation was conducted by the FBI, IRS Criminal Investigation and the U.S. Postal Inspection Service, with federal prosecutors also handling seizure and forfeiture matters.
The sentences illustrate how shell companies, property purchases and personal-asset spending can be used to move and disguise fraud proceeds after abuse of a government programme.
