Active Federal Enforcement Actions:
Hawala, Unlicensed Money Transmission, and
Related Financial Crimes in Minnesota

At a Glance

I. Feeding Our Future — The Largest COVID-19 Fraud in U.S. History

Feeding Our Future was a Minnesota nonprofit founded in 2016 that opened more than 250 sites and fraudulently obtained over $250 million in Federal Child Nutrition Program funds. The organization claimed to serve 90 million meals in under two years. FBI surveillance showed one site claiming 6,000 daily meals averaged approximately 40 visitors. Only about 3% of funding was reportedly spent on actual food.

Defendants and Sentencing Status

Juror Bribery Scheme

During the first trial (spring 2024), five defendants conspired to bribe a juror with $120,000 in cash for a not-guilty vote. The juror reported the bribery to the court. All five pleaded guilty by May 2025:

• Abdiaziz Shafii Farah (faces additional 8-10 years)
• Abdimajid Mohamed Nur
• Said Shafii Farah
• Abdulkarim Farah
• Ladan Mohamed Ali (Seattle, WA)

Where the Money Went

Political Connections

Abdi Nur Salah, who pleaded guilty to wire fraud ($3.4M), worked for nearly a decade in Minneapolis city hall — first as aide to City Council Member Abdi Warsame, then to Mayor Jacob Frey. Trial briefs allege Salah used political influence to lobby politicians to pressure the Minnesota Department of Education not to shut down Feeding Our Future.

Al-Shabaab Connection

II. The $700 Million MSP Airport Cash Corridor

TSA flagged nearly $700 million in cash in passengers' luggage leaving Minneapolis-St. Paul International Airport over two years. The volume is described as 10 to 100 times higher than cash outflows from other major U.S. airports including DFW, ATL, and JFK.

Key Details

• Primary route: MSP → Amsterdam → Dubai
• Couriers: A small group of repeat travelers, predominantly of Somali descent
• Legal status: Cash was legally declared under U.S. Customs rules (amounts over $10,000 must be declared when leaving the country). Declaration is legal; the question is the source of the funds.
• Investigation: Homeland Security Investigations (HSI) is actively investigating
• From Dubai: Money moves to Somalia, Kenya, and other East African destinations through hawala networks and financial intermediaries

III. DOJ Surge into Minnesota

National Fraud Enforcement Division

On January 8, 2026, the Trump administration announced the creation of a new National Fraud Enforcement Division within the Department of Justice, focused on rooting out fraud across the federal government. Minnesota was identified as the primary target.

Prosecutor Deployment

AG Pam Bondi dispatched a team of additional federal prosecutors to reinforce the U.S. Attorney's Office in the District of Minnesota, promising "severe consequences" for fraudsters. This represents a doubling of DOJ presence in Minnesota for fraud investigations.

Scale of Prosecution

Programs Under Investigation

• Feeding Our Future (child nutrition) — $250M+
• Housing Stabilization Services (HSS) — $61M in claims in first 6 months of 2025
• Early Intensive Developmental and Behavioral Intervention (EIDBI / autism services) — $14M+ scheme identified
• Medicaid programs broadly
• Daycare / child care assistance programs
• Additional social services programs (14 total under audit)

IV. FinCEN Enforcement Actions

Geographic Targeting Order (GTO)

Four Notices of Investigation

FinCEN issued four formal notices of investigation to money services businesses (MSBs) in Minnesota under BSA examination and investigative authority. The investigations are focused specifically on MSBs providing services outside the formal banking system — i.e., suspected hawala networks. The names of the four MSBs have not been publicly disclosed.

FinCEN Alert

FinCEN issued a nationwide alert urging financial institutions to identify and report fraud associated with Federal child nutrition programs — a direct response to Feeding Our Future.

Law Enforcement Training

FinCEN provided on-the-ground training for Minnesota-based federal, state, and local law enforcement on utilizing financial data (Suspicious Activity Reports) to combat fraud schemes.

V. Congressional Oversight

A. House Oversight Committee — Minnesota Social Services Investigation

Chairman Comer launched the investigation in December 2025, citing an estimated $9 billion stolen from Minnesota social services programs under Governor Walz.

Key findings: The committee found that senior Minnesota officials were aware of fraud for years, possessed the authority to stop payments, and "repeatedly failed to act." The committee released testimony alleging a fraud "cover-up" by Governor Walz and Attorney General Ellison, including allegations of retaliation against state whistleblowers.

B. Tim Mynett / Rose Lake Capital / eStCru LLC Investigation

On February 5, 2026, Chairman Comer sent a letter to Timothy Mynett (husband of Rep. Ilhan Omar) demanding financial and corporate documents tied to two companies:

Documents Demanded (deadline: February 19, 2026)

• Complete financial statements
• All SEC filings
• Detailed lists of all investors and partners
• Records identifying source of capital contributions
• Travel records for affiliated individuals who traveled to Somalia, Kenya, or the UAE

The Naeem Mohd Lawsuit

Naeem Mohd, a D.C.-area investor, sued Mynett and business partner Will Hailer, alleging he invested $300,000 based on a guaranteed 200% return within 18 months. The returns were never paid. Settlement reached September 2024; terms not disclosed. A guaranteed 200% return is a classic financial red flag associated with money movement schemes, not legitimate profit.

VI. Banking De-Risking — How Hawala Lost Access to Banks

Understanding the banking collapse is essential to understanding why cash-based hawala operations exploded in Minnesota.

Timeline

Scale of remittances: Somalia's remittance economy represents 15-20% of the country's total economic output. The Somali diaspora sends approximately $1.3 billion annually worldwide, with an estimated $215 million from the United States. Most of this flow is legitimate — workers sending money to families. The enforcement challenge is separating legitimate remittances from fraud proceeds and terror financing.

VII. IRS Criminal Investigation (IRS-CI) Activity

Secretary Bessent's January 9, 2026 Announcement

Treasury Secretary Bessent announced a coordinated enforcement package for Minnesota:

1. IRS civil enforcement will audit financial institutions alleged to have facilitated laundering of social services funds.
2. IRS fraud task force to investigate fraud involving pandemic-era tax incentives.
3. 501(c)(3) audit initiative to probe potential misuse of tax-exempt status by entities implicated in fraud schemes.
4. Treasury whistleblower channel opened for accepting tips on fraud, money laundering, and sanctions violations related to Minnesota.

IRS-CI Role in Active Cases

IRS-CI is a lead investigative agency (alongside FBI) on Feeding Our Future and related fraud cases. IRS-CI issued press releases for every major conviction and sentencing.

IRS-CI Nationwide BSA Statistics (2024)

VIII. Landmark Case — United States v. Amina Farah Ali and Hawo Mohamed Hassan

Methods

• Solicited funds door-to-door in Somali communities in Minneapolis, Rochester, and cities across the U.S. and Canada
• Ali communicated by telephone with Al-Shabaab members in Somalia requesting financial assistance
• Funds transferred through hawala money remittance system
• Used false names to conceal that funds were going to Al-Shabaab
• Used coded messages and fictitious names to discuss Al-Shabaab leadership

IX. Recent Enforcement Actions (2025-2026)

Housing Stabilization Services (HSS) Fraud

Autism Services / EIDBI Fraud

2026 Federal Actions

X. Capital Flight Corridors from Minnesota

XI. Whistleblower Programs Available

XII. Enforcement Timeline (2011-2026)