Minnesota childcare and welfare fraud investigation
Abdikerm Abdelahi Eidleh, an alleged ringleader in the Feeding Our Future fraud scheme, was extradited from Somalia to Minnesota on July 16, 2026, to face 31 counts including conspiracy to commit wire fraud. As of July 16, 2026, four Twin Cities residents were also charged with evading $1.1 million in income taxes, and two daycare operators, Fahima Mahamud and Jillaine Mertens, pleaded guilty to fraud schemes totaling over $5 million. Mahamud admitted to $4.6 million in daycare fraud and $850,000 in Feeding Our Future meal program fraud. The Department of Health and Human Services lifted a $10 billion freeze on child care subsidies for five states, including Minnesota, on July 14, 2026, amidst ongoing federal investigations into widespread fraud.
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July 2026 — 5 developments
Minnesota Childcare Fraud: Alleged Ringleader Extradited, New Tax Evasion Charges Filed
Abdikerm Abdelahi Eidleh, an alleged ringleader in the Feeding Our Future fraud scheme, was extradited from Somalia to Minnesota on July 16, 2026, to face 31 counts including conspiracy to commit wire fraud. Separately, four Twin Cities residents were charged on July 15, 2026, with evading $1.1 million in income taxes after allegedly receiving millions from taxpayer-funded programs. On July 14, 2026, the Department of Health and Human Services lifted a $10 billion freeze on child care subsidies for five states, including Minnesota.
Daycare Operators Plead Guilty in Minnesota Childcare Fraud Schemes; Key Fugitive Arrested
Two Minnesota daycare operators, Fahima Mahamud and Jillaine Mertens, pleaded guilty on July 10, 2026, to fraud schemes involving significant childcare funds. Mahamud admitted to $4.6 million in daycare fraud and $850,000 in Feeding Our Future meal program fraud, including not collecting required copayments. Mertens pleaded guilty to stealing $426,000. Additionally, Abdikerm Eidleh, identified as a key figure in the Feeding Our Future fraud scheme, was arrested in Mogadishu, Somalia, on June 25, 2026.
Minnesota Daycare Owner Pleads Guilty to Defrauding Programs of $6.25 Million
Fahima Mahamud, owner of Future Leaders Early Learning Center, pleaded guilty to defrauding Minnesota's Child Care Assistance Program of $5.4 million and the Feeding Our Future meal program of $850,000. She admitted to not collecting required co-payments from families while still receiving taxpayer funds. Mahamud was arrested in February after closing her daycare and booking a flight to London.
Minnesota Childcare Fraud: Abdifitah Mohamud Mohamed Pleads Guilty to $2M Wire Fraud
Abdifitah Mohamud Mohamed pleaded guilty to wire fraud in July 2026 for submitting over $2 million in fraudulent claims. This led to the permanent shutdown of Minnesota's Housing Stabilization Services program. The plea is part of a broader federal investigation into fraud schemes involving childcare funds in Minnesota.
Daycare owner pleads guilty in Minnesota 'Feeding Our Future' fraud scheme
Fahima Mahamud, a daycare owner involved in the 'Feeding Our Future' scheme, pleaded guilty to wire fraud and conspiracy to defraud the United States on July 9, 2026. Prosecutors stated she pocketed over $850,000 in fraudulent funds meant for children during the pandemic, using much of it to buy real estate.
June 2026 — 5 developments
Minnesota mandates electronic attendance records for childcare centers amid fraud probe
Minnesota has implemented new requirements for licensed childcare centers to submit electronic attendance records. This measure is a direct response to ongoing concerns and investigations into suspected fraud within the state's childcare assistance programs.
Fugitive Arrested in Minnesota 'Feeding Our Future' Fraud Scheme After Four Years
Abdikerm Eidleh, accused of being second-in-command in the $250 million 'Feeding Our Future' fraud scheme, was arrested in Mogadishu, Somalia, on June 26, 2026, after being a fugitive for over four years. This development is part of a broader fraud investigation in Minnesota.
FBI Arrests First Suspect on 'Most Wanted Fraudsters' List in Minnesota Childcare Fraud Probe
Said Abdullahi Ereg was arrested on June 11, 2026, as the first suspect on the FBI's new 'Most Wanted Fraudsters' list. He is accused of orchestrating a multimillion-dollar COVID-era fraud scheme through a grocery store under the 'Feeding Our Future' network. This arrest is part of a broader federal investigation into widespread fraud in Minnesota, which has led to charges against 98 individuals and an estimated $9 billion in potential fraud.
DOJ Accelerates Fraud Case Reviews; House Passes 'Stop Child Care Scams Act'
The Department of Justice is accelerating its review of fraud cases involving federally funded, state-administered benefits programs, signaling an intensified enforcement posture. Concurrently, the U.S. House of Representatives has passed the 'Stop Child Care Scams Act' to enhance oversight and accountability in federal child care assistance programs, with potential funding cuts for states failing to enforce anti-fraud rules. Ohio authorities have also indicted individuals in schemes totaling over $50 million, including state employees accused of billing $30 million for non-existent children's behavioral health services, with potential connections to Minnesota fraud cases.
House Passes 'Stop Child Care Scams Act' Amidst Minnesota Fraud Investigations
The House of Representatives passed the 'Stop Child Care Scams Act,' which will mandate the withholding of funds from states that repeatedly fail to address fraud in child care assistance programs. This legislative action aims to crack down on waste, fraud, and abuse following numerous investigations into fraudulent schemes, particularly in Minnesota. The White House has also acknowledged concerns and is taking actions to address the issue.
May 2026 — 2 developments
15 Charged in Minnesota Medicaid Fraud Scheme Totaling Over $90 Million
Fifteen additional individuals have been charged in Minnesota for allegedly defrauding Medicaid programs of over $90 million, with charges spanning childcare, autism services, and housing stabilization. Federal agents executed search warrants at over 20 locations in the Minneapolis area in late April, targeting alleged fraud schemes involving billing for services not provided. One suspect, Muhammad Omar, is reportedly on the run.
Minnesota Childcare Fraud: Daycare Owner Charged with $4.6M in False Claims; Ex-Leader Sentenced
Fahima Mahamud, owner of Future Leaders Early Learning Center, has been charged with wire fraud and conspiracy to defraud the United States, accused of submitting approximately $4.6 million in false claims to Minnesota's Child Care Assistance Program. Separately, Aimee Bock, former leader of "Feeding Our Future," was sentenced to nearly 42 years for her role in a $250 million pandemic fraud scheme. Another daycare owner accused of child nutrition fraud was arrested in Turkey after allegedly attempting to flee.
March 2026 — 1 developments
House Oversight Committee report finds Minnesota officials knew of welfare fraud, failed to act
A House Oversight Committee report released on March 4, 2026, concluded that senior Minnesota officials, including Governor Tim Walz and Attorney General Keith Ellison, were aware of widespread fraud in federally funded welfare programs for years but failed to act. The investigation focused on fraud schemes estimated to have cost taxpayers up to $18 billion, with many defendants being Somali immigrants. The report highlights a Minneapolis fraud ring connected to the Somali immigrant community that exploited the state's federally funded food program.
January 2026 — 27 developments
Minnesota Department of Children, Youth, and Families investigates 158 child care providers
The Minnesota Department of Children, Youth, and Families is currently investigating 158 providers who receive funding from the state's child care program. Of these, 55 investigations are specifically related to providers receiving Child Care Assistance Program funds amidst the ongoing fraud scandal.
Senator Joni Ernst introduces legislation to strengthen anti-fraud measures, citing Minnesota fraud ring
Senator Joni Ernst is advocating for stronger anti-fraud measures, citing Minnesota's fraud ring as a lesson, and is introducing legislation to address insufficient oversight in childcare fraud.
President Trump nominates federal prosecutor as 'fraud czar' for new DOJ enforcement unit
President Donald Trump has nominated a federal prosecutor to the newly created role of 'fraud czar' to lead a new Department of Justice unit for national fraud enforcement, a move linked to the ongoing social-service program fraud investigations.
Idaho Lawmakers Seek to Freeze $14 Million in Childcare Funds Over Fraud Concerns
Idaho lawmakers are seeking to freeze $14 million in new childcare expansion funds over fraud concerns, mirroring issues seen in Minnesota. Additionally, a viral video alleging widespread childcare fraud has caused fear and backlash within Somali communities, prompting accusations of racist rhetoric.
HHS demands Minnesota provide evidence of legitimate child care funding within 60 days
HHS is demanding evidence that child care funding goes to legitimate providers, giving Minnesota 60 days to provide the requested documents.
U.S. District Judge Blocks Federal Government From Withholding Child Care Subsidies
A U.S. District Judge has issued a temporary order preventing the federal government from withholding child care subsidies from five states, including Minnesota. This decision comes after the Trump administration froze funds due to widespread fraud concerns, and the judge will later determine if the funding should remain blocked.
Aimee Bock alleges Walz, Ellison knew of Feeding Our Future fraud before federal intervention
Aimee Bock, the convicted founder of Feeding Our Future, alleged in a jailhouse interview that Minnesota Governor Tim Walz and Attorney General Keith Ellison were aware of the widespread fraud long before federal intervention. She claimed to have flagged suspicious companies to state officials.
Senator Schmitt Introduces Bill to Revoke Citizenship for Fraud Amid Minnesota Childcare Scandal
Federal agents were dispatched to Minnesota following childcare fraud reports, leading to pushback from local officials over an immigration crackdown. Separately, Senator Eric Schmitt introduced a bill on January 19 to expand grounds for revoking citizenship for individuals involved in fraud, citing the Minnesota Somali crime rings.
Reports dispute billions defrauded in Minnesota welfare, estimate $218 million
Recent reports dispute claims of billions of dollars defrauded in Minnesota's welfare programs, stating actual estimates are closer to $218 million. The article also addresses the misrepresentation of funds going to terrorist organizations.
Former Investigator Testifies Racial Bias Accusations Derailed Minnesota Child Care Fraud Probes
A former fraud investigator testified before Congress that earlier probes into child care assistance payment fraud in Minnesota's Somali community were derailed by accusations of racial bias. The investigator stated his team's case selection was based on funding data.
Trump links Rep. Omar to Minnesota Medicaid fraud, cites Somali descent of charged individuals
President Trump publicly criticized Rep. Ilhan Omar, linking her to the ongoing Medicaid fraud scandal in Minnesota. He claimed nearly 90 of the 98 charged individuals were of Somali descent.
Aimee Bock expresses regret from jail over Feeding Our Future fraud scandal
Aimee Bock, founder of the Minnesota nonprofit Feeding Our Future, has spoken out from jail for the first time, expressing regret over the massive childcare fraud scandal. Bock, identified as a central figure, defended her actions while admitting she wished she could have prevented the situation.
FBI and Prosecutors Intensify Crackdown on Minneapolis Welfare Fraud, Seizing Over $6 Billion
The FBI and federal prosecutors intensified their crackdown on welfare fraud networks in Minneapolis, targeting daycare, Medicaid autism clinics, and housing scams under "Operation Heartbreak Shield." Over $6 billion has reportedly been seized in the operation.
Treasury Department targets Minnesota over alleged fraud rings
The Treasury Department is targeting Minnesota with a financial weapon in response to alleged fraud rings that have siphoned billions from state and federal programs for children, seniors, and families.
Federal Judge Blocks HHS Freeze of Child Care Funds for Five States
The U.S. Department of Health and Human Services (HHS) froze federal child care and family assistance funds for five states, including Minnesota, due to widespread fraud concerns. This freeze was subsequently blocked by a federal judge.
US Treasury and HHS announce new initiatives to combat fraud in Minnesota
The U.S. Department of the Treasury announced new initiatives to combat widespread fraud in Minnesota, including an IRS task force to investigate pandemic-era tax incentives and misuse of 501(c)(3) status. Additionally, the U.S. Department of Health and Human Services (HHS) froze federal child care and family assistance funds for California, Colorado, Illinois, Minnesota, and New York due to fraud concerns, and a House Oversight Committee hearing discussed alleged widespread fraud and misuse of federal funds in Minnesota.
White House announces new DOJ National Fraud Enforcement Division
The White House released a fact sheet on January 8, detailing the establishment of a new Department of Justice Division for National Fraud Enforcement.
U.S. Treasury Secretary Bessent announces initiatives to combat Minnesota benefits fraud
U.S. Treasury Secretary Scott Bessent announced new initiatives to combat government benefits fraud in Minnesota, specifically targeting the Somali fraud scheme. These actions include issuing notices of investigation to money services businesses and implementing a Geographic Targeting Order for international transactions.
Judge orders Aimee Bock to forfeit Porsche, property, and millions in fraud case
A federal judge approved a preliminary order for Aimee Bock, identified as the mastermind of the 'Feeding Our Future' fraud scandal, to forfeit a Porsche, property, and millions of dollars. This action targets assets linked to the ongoing Minnesota welfare fraud case.
House Oversight Committee Alleges $9 Billion in Stolen Minnesota Social Services Funds
A House Oversight Committee hearing focused on the alleged $9 billion in stolen taxpayer funds from Minnesota's social services, with lawmakers alleging some funds were potentially diverted to terrorism.
HHS freezes $2.4 billion in child care funds for Minnesota and four other states over fraud concerns
The U.S. Department of Health and Human Services (HHS) froze access to nearly $2.4 billion in federal child care and family assistance funds for Minnesota and four other states on January 6, 2026, due to widespread fraud concerns. This action follows the U.S. Justice Department's announcement on December 30, 2025, that it had charged 98 individuals in connection with a broad fraud investigation in Minnesota, with more prosecutions anticipated.
Somali-run daycares in Washington report threats and harassment after Minnesota fraud allegations
Following the fraud allegations in Minnesota, Somali-run daycare providers in Washington state are reporting threats and harassment, including doxing, verbal harassment, and death threats, according to the Council on American-Islamic Relations in Washington.
HHS freezes $2.4 billion in child care funds for five states over fraud concerns
The U.S. Department of Health and Human Services (HHS) has frozen access to federal child care and family assistance funds for California, Colorado, Illinois, Minnesota, and New York. This action impacts nearly $2.4 billion in Child Care and Development Block Grant funds due to significant concerns about widespread fraud.
HHS implements new requirements for states submitting Medicaid daycare claims
The U.S. Department of Health and Human Services has implemented new requirements for states submitting claims for Medicaid-supported daycares.
Federal Prosecutors Estimate Minnesota Federal Program Fraud Could Exceed $9 Billion
Federal prosecutors now estimate total fraud in Minnesota's federal programs could top $9 billion, as state officials investigate 55 day care providers. The Minnesota Department of Children, Youth and Families also reported that daycares highlighted in a viral video were 'operating as expected' during recent compliance checks, while HHS ordered all states to justify federal child care funds.
State officials visited facilities after influencer's accusations against Somali daycare operators
State officials visited the facilities following the right-wing influencer's accusations and threats against Somali daycare operators. However, no details on their findings have been released.
Right-wing influencer's accusations linked to threats against Somali daycare staff in Minnesota
A right-wing media influencer's accusations against Somali daycare operators in Minnesota have been identified as directly causing the threats against staff.
December 2025 — 12 developments
Kenyan National Abdi Aziz Shafi Farra Sentenced to 28 Years for Minnesota Fraud Network
A significant fraud network in Minnesota has led to 100 arrests, with the alleged ringleader, Kenyan National Abdi Aziz Shafi Farra, sentenced to 28 years.
Federal investigations into Minnesota fraud schemes continue, intensifying political debate
Federal investigations into the various fraud schemes in Minnesota remain ongoing, with agencies continuing to follow leads and pursue additional prosecutions. The situation has intensified political debate and scrutiny over the state's handling of federal funds.
DOJ Charges 98 in Minnesota Federal Funds Fraud, Somali Community Identified as Focal Point
The U.S. Justice Department has charged 98 individuals in connection with a broad fraud investigation in Minnesota, with more prosecutions anticipated. The department stated that over 60 individuals have already pleaded guilty or been convicted. Federal authorities identified Minnesota's Somali community as a focal point for the alleged misuse of millions in federal social service funds.
HHS freezes Minnesota child care payments over 'blatant fraud' allegations
The U.S. Department of Health and Human Services (HHS) announced it would freeze all child care payments to Minnesota, citing 'blatant fraud' and demanding a comprehensive audit of daycare centers identified in the viral video.
Kash Patel confirms FBI investigating $200 million fraud in Minnesota, over 90 indicted
Kash Patel confirmed that the FBI is actively investigating alleged fraud schemes in Minnesota, and more than 90 individuals have been indicted in connection with the siphoning of over $200 million from various programs.
Nick Shirley Alleges Widespread Fraud in Minnesota Daycare Centers
Independent journalist Nick Shirley released a viral YouTube video alleging widespread fraud in Minnesota daycare centers, showcasing largely inactive facilities that reportedly received millions in state funds.
Yussuf defrauds over $6 million in EIDBI reimbursement funds
Six additional defendants have been charged in ongoing fraud schemes, and one defendant has pleaded guilty. One of the schemes involved Yussuf defrauding over $6 million in EIDBI reimbursement funds by using unqualified technicians and offering kickbacks.
Federal prosecutor reveals $9 billion in Minnesota federal funds may be stolen
A federal prosecutor revealed that half or more of the roughly $18 billion in federal funds supporting 14 Minnesota-run programs since 2018 may have been stolen, announcing new charges in housing services and autism program fraud, with 82 of 92 defendants being Somali Americans.
Whistleblower warns of emerging Medicaid fraud ring in Ohio, similar to Minnesota case
A whistleblower has warned that a massive Medicaid fraud ring, similar to the one in Minnesota, is now emerging in Ohio, allegedly operating for a decade and involving coerced providers and coached patients.
CBS News Reports 'Feeding Our Future' Defendants Spent Stolen Funds on Luxury Items
CBS News published an in-depth report detailing how defendants in the 'Feeding Our Future' fraud scheme spent millions in stolen taxpayer funds on luxury items, including cars, private villas, and overseas wire transfers.
Jillaine Mertens pleads guilty to $426,000 daycare fraud in Minnesota
Jillaine Mertens pleaded guilty to daycare fraud, admitting to stealing $426,000 as part of the Feeding Our Future scheme. This plea is connected to the ongoing federal investigation into childcare fraud in Minnesota.
Somali fraud ring in Minnesota scammed funds for autistic children, increasing federal funding
A report revealed that the 'Somali fraud ring' in Minnesota involved funds designated for autistic children, and the scam led to a massive increase in federal funding and the number of autism providers.
November 2025 — 1 developments
Abdimajid Mohamed Nur sentenced to 10 years, ordered to pay $47M in Feeding Our Future fraud
Abdimajid Mohamed Nur was sentenced to 10 years in prison and ordered to pay over $47 million in restitution for his role in the Feeding Our Future fraud scheme.
February 2025 — 1 developments
Minneapolis Woman Pleads Guilty in $250 Million Feeding Our Future Fraud Scheme
A Minneapolis woman, Najmo M. Ahmed, has pleaded guilty for her involvement in the $250 million Feeding Our Future fraud scheme. She assisted her husband in operating Evergreen Grocery and Deli, which participated in the fraudulent federal child nutrition program.
January 2022 — 1 developments
Indictments begin in $250 million 'Feeding Our Future' COVID-era food aid fraud
Indictments began in the 'Feeding Our Future' scheme, a $250 million COVID-era federal food aid fraud, which later became a significant precursor and a connected part of the broader fraud investigations in Minnesota.
August 2018 — 1 developments
Minnesota CCAP Manager Alleges Widespread Fraud in Somali Community, Funds Sent Overseas
An investigative unit manager for Minnesota's Child Care Assistance Program (CCAP) sent an email to the Inspector General at DHS, outlining a case for widespread CCAP fraud, particularly centered in the Somali community, with allegations of funds going overseas.