Feeding our Future was a non-profit organization based in Minnesota. In 2022, members of the organization were accused of defrauding the state’s USDA-funded school nutrition programs of at least $250 million over the course of the COVID-19 pandemic. The Feeding Our Future scheme is the sum of a whole lot of parts. So far about 70 parts. And while they say, the whole is greater than the sum of the parts, the parts of this scheme were all very successful stealing from the U.S. taxpayer.
Over a two-year period, Haji Osman Salad claimed he served more than 15 million meals to Federal Child Nutrition Program sites through his business Haji’s Kitchen. And he created false invoices to support his claims, although the numbers didn’t add up. For instance, he created false invoices claiming he supplied a site in Pelican Rapids, a town of 2,500 people, with almost $300,000 worth of food for 140,000 meals and snacks.
Salad admitted to creating shell companies, such as US Halal Foods LLC, that were not actually involved in the food business and were used to launder money as part of the scheme. In all, Salad was responsible for $19 million in lost funding from the Federal Child Nutrition Program. Salad admitted to taking at least $2 million in federal funds for himself to purchase properties, and $400,000 for vehicles. The vehicles included Mercedes and Land Rover SUVs, according to charges.
As part of the agreement, Salad is required to pay back the $11.4 million he received in restitution. He also agreed to forfeit the properties and vehicles he bought with fraudulently obtained money.
Great job by the COVID-19 Fraud Enforcement Task Force for ensuring that each part of the Feeding Our Future scheme gets in their day in court. Salad is the 20th person to plead guilty in the Feeding Our Future federal fraud case, out of the 70 defendants charged in Minnesota so far.
Today’s Fraud of The Day is based on article “Brooklyn Park business owner pleads guilty in Feeding Our Future case” published by The Minnesota Star Tribune on September 20, 2024.
A leader in the Feeding Our Future scheme pleaded guilty Thursday to wire fraud and admitted to receiving $11.4 million he claimed was going to meals for low-income children during the COVID-19 pandemic.
Haji Osman Salad, 34, appeared Thursday in U.S. District Court in Minneapolis to plead guilty to one count of wire fraud. His other charges, related to wire fraud and money laundering, will be dismissed as part of the plea agreement.
