MINNEAPOLIS — A Faribault couple has pleaded guilty to federal charges in connection with the Feeding Our Future food program scandal.
On Tuesday, the Justice Department announced Mohamed Ali Hussein and Lul Bashir Ali each pleaded guilty to one count of conspiracy to commit wire fraud in federal court.
Huessin and Ali were part of a second wave of defendants charged in March in connection with the fraud scheme. Sixty people have been charged in all, with most accused of keeping money from the Federal Child Nutrition Program that was sent to reimburse the nonprofit Feeding Our Future for providing meals to children during the pandemic.
According to U.S. Attorney Andrew Luger, Hussein and Ali admitted to listing their companies, Somali American Faribault Education (SAFE) and Lido Restaurant, as sponsors of Feeding Our Future. As part of the scheme, the couple admitted to submitting fake documents and inflated invoices for reimbursement, falsely claiming to serve far more children than they did in reality.
The U.S. Attorney's Office said Hussein's SAFE collected more than $2.1 million from the Federal Child Nutrition Program, while Ali's Lido Restaurant received more than $2.9 million. In a news release, prosecutors said Hussein also "paid more than $100,000 in kickbacks to Feeding our Future personnel in exchange for the nonprofit's sponsorship of Lido Restaurant and SAFE."
As part of the plea agreement, Hussein and Ali agreed to pay $5 million in restitution and agreed to forfeit a vehicle and other property.
Hussein and Ali are not the first to plead guilty in the case; their plea agreements were also not unexpected after being charged in March via "information" rather than a grand jury indictment, which often indicates anticipated cooperation.
The cases for other Feeding Our Future defendants haven't been as clear cut; one defendant failed to show up for court in April, leading to a warrant for his arrest; six others filed a motion in May seeking to have their federal trial moved to Chicago, claiming they could no longer receive a fair trial in Minnesota.
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