Minnesota State Wire

Guhaad Hashi Said, 49, has pleaded guilty in U.S. District Court to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. The charges are related to his involvement in a large-scale fraud scheme that targeted a federally funded child nutrition program during the COVID-19 pandemic, according to an announcement from Acting U.S. Attorney Joseph H. Thompson.

“The conviction of the 52nd defendant in the Feeding our Future case is yet another reminder of the vast reach of this fraud and the scale of the crisis we face in Minnesota,” said Acting U.S. Attorney Joseph H. Thompson. “These crimes are not isolated events. They are part of a web of schemes targeting programs that are intended to lift up Minnesotans and bleeding them dry. From where I sit, the scale of the fraud in Minnesota is staggering, and every rock we turn over reveals more. We must be honest and clear-eyed about the scope of this problem, because ending it will take an unyielding, all-hands-on-deck effort from all of us.”

Court documents show that between December 2020 and January 2022, Said worked with others to obtain millions of dollars from Federal Child Nutrition Program funds through fraudulent means. These funds were meant as reimbursements for providing meals to underprivileged children.

Said claimed he operated a program site called Advance Youth Athletic Development, which he incorporated on February 26, 2021, listing its office at an apartment unit in Northeast Minneapolis’ Central Avenue Lofts. He asserted that he was running a federal child nutrition program from this location.

Starting March 2021, meal count sheets submitted by Said’s site claimed they served 5,000 meals daily to children throughout each week. Between March and December 2021, claims were made for serving over one million meals; however, authorities say these numbers were greatly exaggerated and only a small portion were actually provided as reported.

To support these false claims, fraudulent meal counts, attendance rosters, and invoices were prepared and submitted by Said.

Additionally, from August 2020 through 2022, Said took part in a money laundering conspiracy aimed at hiding proceeds from their fraudulent activities involving Federal Child Nutrition Program funds. Non-profits and limited liability companies were created by Said and others to conceal ownership and sources of these proceeds.

The laundered money was then used for personal purchases such as real estate and vehicles through shell companies set up by those involved in the scheme. For example, after registering Advance Youth Athletic Development as a non-profit on February 26, 2021—and opening its bank account shortly after—Said transferred more than $2.1 million between August and December 2021 from those accounts to S & S Catering under the pretense that these payments covered food services for children.

In total, approximately $2.9 million was received by Said and his co-conspirators based on their fraudulent activities within this federal program.

Sentencing for Said will occur at a later date; he faces up to 25 years in prison if convicted on all counts.

“Yesterday Guhaad Said pleaded guilty to charges related to his role in a sprawling fraud scheme designed to financially enrich the defendants at the expense of hungry children,” said FBI Minneapolis Special Agent in Charge Alvin M. Winston Sr., adding: “Said stole money falsified paperwork submitted to the government and was reimbursed millions of dollars to which he was not entitled… The FBI together with our law enforcement partners will ensure this fraud stops—and we will ensure that every defendant in this investigation is held fully accountable for their conduct.”

The investigation involved efforts by the FBI alongside IRS – Criminal Investigation agents as well as members from U.S Postal Inspection Service teams.

Prosecution is being handled by Acting U.S Attorney Joseph H Thompson along with Assistant U.S Attorneys Matthew S Ebert Harry M Jacobs Daniel W Bobier; asset seizure matters are managed by Assistant U.S Attorney Craig Baune.