Fahima Mahamud, 50, has pleaded guilty to wire fraud and conspiracy to defraud the United States in connection with a Minneapolis daycare operation that illegally claimed federal reimbursements. The woman was at the center of a viral fraud investigation by journalist Nick Shirley.
Prosecutors state that Mahamud owned the Future Leaders Early Learning Center and submitted fraudulent claims for $854,000 under the Child Care Assistance Program as part of a scheme known as “Feeding Our Future.” She falsely reported providing up to 60,000 meals per month for needy children.
Instead of using the funds for child nutrition, Mahamud diverted most of the ill-gotten gains to real estate purchases. Among these acquisitions was an autism center that billed the federal government $3.1 million over five years. The investigation revealed Mahamud defrauded the U.S. government of a total of $4.6 million.
