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Unraveling the Web: Ilhan Omar’s Ties to Minnesota’s Somali Fraud Scandals

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Ilhan, Omar, Kevin Jackson

The following article, Unraveling the Web: Ilhan Omar’s Ties to Minnesota’s Somali Fraud Scandals, was first published on The Black Sphere.

In the heart of Minnesota’s 5th Congressional District—home to the largest Somali-American population in the United States—a series of massive fraud schemes has rocked the state.

Somalis are siphoning hundreds of millions in taxpayer dollars from federal and state programs designed to aid vulnerable children and families. At the epicenter of this scandal stands Rep. Ilhan Omar (D-MN), a Somali refugee turned congresswoman whose personal and professional connections to convicted fraudsters have fueled intense scrutiny. While Omar has repeatedly denies any knowledge of wrongdoing, her links to key players—ranging from campaign staffers and donors to event hosts—raise uncomfortable questions about oversight, influence, and the intersection of politics and community leadership.

This isn’t a tale of isolated bad actors; it’s a sprawling network of over 78 indictments, more than 60 convictions, and an estimated $1 billion in losses across multiple programs. Federal probes, including a newly launched investigation by the Small Business Administration (SBA) under Administrator Kelly Loeffler, are now examining whether funds were laundered to terrorist groups like Al-Shabaab in Somalia.

President Donald Trump’s recent Oval Office comments—labeling the fraud a “hub of money laundering” and vowing to end Temporary Protected Status (TPS) for Somalis—have amplified the controversy, drawing accusations of bigotry from Democrats while spotlighting systemic failures under Gov. Tim Walz and Attorney General Keith Ellison.

Omar’s defenders, including CNN’s Jake Tapper in a recent interview, argue that “just because a handful of Somalis are committing massive fraud doesn’t mean they are all bad people.”

But with over 50 defendants of Somali descent in the flagship Feeding Our Future case alone, critics contend the “handful” narrative underplays a pattern. And that pattern is rooted in cultural distrust of institutions and lax pandemic-era safeguards. As one former Somali-American fraud investigator told the Minnesota Reformer, “social cohesion” in the community sometimes shielded schemes from scrutiny, with cries of racism used to deflect probes.

It’s almost impossible to provide a detailed accounting of the crimes, the individuals involved, and their documented connections to Omar. So we are sticking to verified facts from court records, campaign filings, and public statements. While no charges have been filed against Omar, the degrees of separation are razor-thin, often just one or two steps removed.

The Crimes: A Billion-Dollar Betrayal of Public Trust

Minnesota’s fraud epidemic exploded during the COVID-19 pandemic, exploiting rushed federal programs with minimal oversight. Key schemes include:

  1. Feeding Our Future (FOF): The $250 Million “Phantom Meals” Scandal

  • Overview: From 2019–2022, FOF—a Minneapolis-based nonprofit sponsored by the Minnesota Department of Education (MDE)—oversaw child nutrition programs under the federal Child Nutrition Act. Fraudsters created shell companies to claim reimbursements for millions of meals that were never served, often billing for “ghost sites” like empty lots or private homes. Funds bought luxury cars, real estate in Somalia and the U.S., and lavish trips. Only about $75 million has been recovered.
  • Scale: 78 defendants charged; 59 convicted by late 2025 (including 7 at trial). It’s the largest COVID fraud case in U.S. history.
  • Key Tactics: Fake invoices, recruited parents for kickbacks, and pressure on regulators via community leaders. A 2024 state audit blasted MDE for ignoring red flags, like claims skyrocketing from $4 million to $200 million annually without verification.

  1. Housing Stabilization Services (HSS): The $100+ Million Homeless Aid Heist

  • Overview: Launched in 2020 as part of Medicaid, HSS aimed to help those with mental health or substance issues find housing. Providers billed for undelivered services—e.g., claiming 24/7 support while doing nothing—costing $61 million in the first half of 2025 alone (vs. an initial $2.6 million estimate).
  • Scale: Program terminated in August 2025 after 77 providers were cut off for fraud. Eight indicted in September 2025; more charges expected.
  • Key Tactics: Fictitious companies, maximum billing with minimal (or zero) services, and funds funneled overseas via hawala networks.

  1. Autism Therapy Fraud: The $14 Million “Fake Diagnoses” Scheme

  • Overview: Tied to Medicaid’s Early Intensive Developmental and Behavioral Intervention (EIDBI) program, scammers recruited Somali families, fabricated autism diagnoses for ineligible children, and billed for nonexistent therapy sessions.
  • Scale: At least one major indictment in 2025; overlaps with FOF.
  • Key Tactics: Approaching parents in mosques and community centers, bribing doctors for false reports.

  1. Voter Fraud Allegations: A Separate but Overlapping Probe

  • Overview: In late 2025, two Somali-linked individuals pleaded guilty to submitting ~600 fake voter registrations in 13 counties, including Omar’s district. Funds from prior frauds may have bankrolled it.
  • Scale: Ongoing; tied to broader election integrity concerns.

Across these, a November 2025 City Journal report—citing federal sources—alleged millions were remitted to Somalia, potentially funding Al-Shabaab. Treasury Secretary Scott Bessent confirmed a probe on December 1, 2025. No terrorism charges yet, but the SBA’s new investigation targets FOF-linked nonprofits for PPP loan fraud.

 

Scheme Estimated Loss Defendants Charged Convictions Key Programs Exploited
Feeding Our Future $250M+ 78 59 Child Nutrition (USDA)
Housing Stabilization Services $100M+ 8+ (more pending) 0 (ongoing) Medicaid HSS
Autism Therapy $14M 1+ (overlaps FOF) 0 (ongoing) Medicaid EIDBI
Voter Fraud Unknown 2 guilty pleas 2 Voter Registration
Total $1B+ 88+ 61+ Multiple Federal/State

The People Involved: A Network of Neighbors and Donors

Dozens of Somali Minnesotans face charges, but the schemes relied on tight-knit community ties. Here’s a breakdown of key figures:

  • Aimee Bock: FOF founder (non-Somali); convicted in 2025, sentenced to prison for wire fraud.
  • Haji Osman Salad & Sharmarke Issa: Pleaded guilty in September 2024 to wire fraud; claimed 2.3 million phantom meals via shell companies like Wacan Restaurant LLC.
  • Khadra Abdi: Pleaded guilty alongside Salad and Issa; ran fake meal sites.
  • Moktar Hassan Aden, Mustafa Dayib Ali, Khalid Ahmed Dayib: HSS fraud leaders; indicted September 2025 for billing undelivered services through LLCs like Brilliant Minds Services.
  • Abdifitah Mohamud Mohamed, Asad Ahmed Adow, Anwar Ahmed Adow: Co-defendants in HSS; Somali community members who pocketed millions.
  • Asha Farhan Hassan: Indicted in autism and FOF schemes; recruited families for fake diagnoses.
  • Abdi Nur Salah: FOF operator and former aide to Minneapolis Mayor Jacob Frey; charged with fraud.
  • Abdimajid Mohamed Nur: Indicted in bribery tied to FOF trials.

Many defendants were entrepreneurs in Minneapolis’s Cedar-Riverside neighborhood, leveraging cultural networks for recruitment. As former investigator Kayseh Magan noted,

“They’re conditioned to ripping off the government because that’s what goes on in Somalia.”

 

Connections to Ilhan Omar: From Campaign Cash to Victory Parties

Omar, elected in 2018 as a progressive “Squad” member, has deep roots in Minnesota’s Somali community—advocating for refugees while introducing the 2020 MEALS Act, which expanded child nutrition funding and inadvertently enabled FOF’s explosion. She’s returned $7,400 in tainted donations post-scandal but insists she was unaware. Yet, documented ties persist:

  • Guhaad Hashi Said (Direct Campaign Staffer): Omar’s former policy fellow and campaign official pleaded guilty in August 2025 to running Advance Youth Athletic Development, a fake FOF site that pocketed $3.2 million by claiming 5,000 daily meals. Said served meals to zero children. Degree: 1 (employee).
  • Salim Ahmed Said (Event Host and Frequent Patron): Owner of Safari Restaurant, where Omar held her 2018 victory party (likely paying for the venue). Convicted in March 2025 on 21 counts, including wire fraud and money laundering; stole $5 million via FOF. A policy fellow told the New York Post Omar “often frequented” the spot for dinners. Degree: 1 (business associate).
  • Donors and Community Allies: In 2022, Omar returned funds from FOF-linked donors after indictments. Her deputy district director, Ali Isse, defended FOF at a 2021 gala, blaming scrutiny on “racism” and urging unity—months before the FBI raid. No charges against Isse. Degree: 1 (staff).
  • Broader Network: FOF operators attended Somali community events Omar headlined. In her Tapper interview, she blamed “lack of guardrails” in rushed programs, not cultural factors—echoing defenses from figures like Minneapolis Mayor Jacob Frey, whose aide was charged.

Omar’s office declined comment beyond a November 2025 statement: “We do not blame the lawlessness of an individual on a whole community.”

Critics, including Trump, ask: With personal ties this close, what did she know?

Rumors of Keith Ellison’s Involvement: Smoke Without Fire?

As Minnesota’s top law enforcement official, Attorney General Keith Ellison (D) faces whispers of kickbacks tied to FOF. A secretly recorded December 2021 meeting in his office—obtained by American Experiment—captures him pledging aid to Somali leaders complaining about MDE scrutiny of FOF. “We’re in the middle of the battle with the agencies now,” he said, mocking regulators and promising to intervene with DHS Commissioner Jodi Harpstead.

Nine days later, Ellison and his son (Minneapolis Councilmember Jeremiah Ellison) received $10,000 in donations from attendees, including Gandi Mohamed (FOF Defendant #45). Ellison’s public claim of “two years” investigating FOF contradicts his taped surprise at the complaints. Republicans, including House Fraud Committee Chair Kristin Robbins, grilled him in April 2025, demanding a bribery probe. His spokesman: “Nothing happened as a result… These fraudsters tried to exploit [his] good faith.”

No charges against Ellison, who has secured settlements in unrelated kickback cases (e.g., $202 million from Gilead in July 2025). But the timeline—donations post-meeting, pre-raid—fuels speculation of influence-peddling.

Broader Implications: Culture Clash or Systemic Failure?

Omar’s past comments prioritizing Somalia—”Somalia is my country”—resurface amid claims funds aided Al-Shabaab, though unproven.

Trump’s microscope—threatening TPS revocation by March 2026—pits immigration hardliners against community leaders like State Sen. Zaynab Mohamed, who tout Somalis as Minnesota’s “fabric.”

Whistleblowers, including 480+ DHS employees, accuse Walz of cover-ups and punishing reporters. A 2024 Minnesota Reformer piece by ex-investigator Magan highlights “uncomfortable truths”: Distrust of “Minnesota nice” norms enabled fraud, but racism fears stifled probes.

Is there fire behind the smoke? No smoking gun indicts Omar or Ellison, but the web of connections demands deeper federal scrutiny. As Loeffler’s SBA probe unfolds, Minnesota grapples with a stark reality: Billions stolen from kids’ meals and homeless aid didn’t vanish—they enriched a few, strained a state, and eroded trust in the American Dream for all.

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