FBI’s fraud dragnet claims first scalp
In what federal officials are hailing as the first major score from Washington’s newly launched effort to hunt down alleged fraud fugitives, a Minnesota businessman accused of pocketing millions meant to feed needy children has surrendered to authorities after finding himself plastered on the FBI’s brand-new “Most Wanted Fraudsters” list.
Said Abdullahi Ereg, 47, a former Minneapolis grocery and deli owner, is now facing federal charges that include wire fraud conspiracy, wire fraud and money laundering. Prosecutors say he was part of a sprawling scheme tied to the notorious Feeding Our Future scandal, one of the largest alleged pandemic-relief fraud operations ever uncovered in the United States.
According to federal investigators, Ereg’s business, Evergreen Grocery and Deli, allegedly claimed it was serving thousands of meals to children every single day during the pandemic — numbers that prosecutors suggest strained credibility from the start.
Court filings allege the store reported serving more than 3,000 meals twice daily, seven days a week, while collecting government reimbursements through the Federal Child Nutrition Program. Federal authorities claim the operation ultimately pulled in more than $4.2 million in taxpayer-funded reimbursements.
The government alleges those meals largely existed on paper rather than in reality.
Instead, prosecutors say, money intended for hungry children was diverted through a web of financial transactions, including transfers to overseas accounts. Authorities further allege portions of the proceeds helped bankroll a lavish lifestyle while taxpayers were footing the bill.
The surrender came less than a week after the Justice Department publicly rolled out its “Most Wanted Fraudsters” initiative, a new effort designed to spotlight fugitives accused of major financial crimes and increase public pressure on suspects who believe they can simply disappear.
Said Abdullahi Ereg, 47, a former Minneapolis grocery and deli owner, is now facing federal charges that include wire fraud conspiracy, wire fraud and money laundering. Prosecutors say he was part of a sprawling scheme tied to the notorious Feeding Our Future scandal, one of the largest alleged pandemic-relief fraud operations ever uncovered in the United States.
According to federal investigators, Ereg’s business, Evergreen Grocery and Deli, allegedly claimed it was serving thousands of meals to children every single day during the pandemic — numbers that prosecutors suggest strained credibility from the start.
Court filings allege the store reported serving more than 3,000 meals twice daily, seven days a week, while collecting government reimbursements through the Federal Child Nutrition Program. Federal authorities claim the operation ultimately pulled in more than $4.2 million in taxpayer-funded reimbursements.
The government alleges those meals largely existed on paper rather than in reality.
Instead, prosecutors say, money intended for hungry children was diverted through a web of financial transactions, including transfers to overseas accounts. Authorities further allege portions of the proceeds helped bankroll a lavish lifestyle while taxpayers were footing the bill.
The surrender came less than a week after the Justice Department publicly rolled out its “Most Wanted Fraudsters” initiative, a new effort designed to spotlight fugitives accused of major financial crimes and increase public pressure on suspects who believe they can simply disappear.
70-79, M
