Rochester Woman Pleads Guilty To Wire Fraud, Money Laundering In $250 Million Child Nutrition Program Scam

Rochester Woman Pleads Guilty To Wire Fraud, Money Laundering In $250 Million Child Nutrition Program Scam

A Rochester woman, involved in a fraud scheme that siphoned off $250 million intended for underprivileged children during the pandemic, has pleaded guilty to charges of wire fraud and money laundering. The U.S. Attorney's Office, District of Minnesota reports that from December 2020 to January 2022, Ayan Jama, aged 45, participated in fraudulent activities undermining the Federal Child Nutrition Program which was designed to provide complimentary meals to needy children.

Jama's admission of guilt outlines her role in claiming inflated meal counts for children that either didn't exist or receive meals, resulting in over $5.3 million in reimbursements from the program. Jama was a principal at Brava Rochester in Minnesota, which falsely reported feeding approximately 2,000 to 3,000 daily breakfasts and lunches to children, and through a co-conspirator, the restaurant received funds from the non-profit Feeding Our Future after submitting fake attendance rosters and meal counts, according to the U.S. Attorney's Office, District of Minnesota.

The scheme's scale was vast, with Brava Restaurant alone fraudulently claiming the service of more than 1.7 million meals. Court documents highlight Jama's use of the ill-gotten funds for personal gains, including the purchase of properties in Rochester, Columbus, and even the Mediterranean coast of Turkey. The plea agreement reveals that Jama's dirty money was funneled through shell companies; she deposited at least $407,070 into accounts for East Africa LLC, a company registered on her behalf by co-conspirator Salim Said.

As a result of her actions, Jama now faces a future sentencing hearing after pleading guilty last Friday before Chief Judge Patrick J. Schiltz, as per the U.S. Attorney's Office, District of Minnesota. The case, which was investigated by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service, represents a stark misuse of critical pandemic relief efforts. Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, and Harry M. Jacobs are in charge of the prosecution, with Assistant U.S. Attorney Craig Baune dealing with the seizure and forfeitures of assets.

SOURCE: hoodline