A Bloomington man has been sentenced to 17 years and six months in prison for his involvement in a $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic. Acting U.S. Attorney Lisa D. Kirkpatrick announced the sentence, which includes three years of supervised release and restitution of $47,920,514.
"The defendant committed a brazen fraud that shamelessly stole taxpayer money intended to feed children during a global pandemic," said Acting U.S. Attorney Kirkpatrick. "As the Court found, he doubled down on his crimes by obstructing justice."
Mukhtar Mohamed Shariff, 34, was convicted for orchestrating the fraud as CEO of Afrique Hospitality Group. He misappropriated funds meant for children's meals by submitting false documentation, including meal count sheets and invoices.
The Federal Child Nutrition Program, managed by the USDA's Food and Nutrition Service, provides free meals to children in need. In Minnesota, it is overseen by the Minnesota Department of Education (MDE). During the pandemic, some participation requirements were waived to accommodate for-profit restaurants and off-site food distribution.
Following a seven-week trial before Judge Nancy E. Brasel in June 2024, Shariff was found guilty of conspiracy to commit wire fraud and money laundering. Judge Brasel noted Shariff's "staggering lack of respect for the law" when delivering the sentence.
The investigation involved multiple agencies including the FBI and IRS – Criminal Investigations. The case was prosecuted by Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier.
Assistant U.S. Attorney Craig Baune is managing asset seizure and forfeiture related to this case.