A Golden Valley man has admitted guilt in a wire fraud case linked to a $250 million scheme exploiting a federally funded child nutrition program during the COVID-19 pandemic. This development was announced by Acting U.S. Attorney Joseph H. Thompson.
Court documents reveal that Ahmed Mohamed Artan, 40, acquired a non-profit entity named Stigma-Free International in October 2020 to facilitate the fraudulent activities. Artan and his associates established multiple Federal Child Nutrition Program sites across Minnesota, including locations in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul. They also created shell companies acting as meal vendors for these sites, falsely claiming to serve meals to thousands of children daily and receiving millions in federal funds as reimbursement.
Between November 2020 and November 2021, nearly 5 million meals were reportedly served at these sites under false pretenses with fraudulent documentation submitted to support their claims.
Additionally, Artan’s group set up Olive Management Inc., which falsely claimed to operate a child nutrition site in St. Cloud serving meals to 3,000 children daily from September 2020 to September 2021. The claims were backed by fabricated records and attendance rosters listing fictitious children.
Another entity called Optimum Community Services was used in the scheme, allegedly serving around 700,000 meals at locations in Golden Valley and Waite Park between March and December 2021.
Instead of using the funds for their intended purpose of feeding children, Artan and his co-conspirators misappropriated much of it through Five A’s Projects LLC—a shell company where over $1 million was transferred from federal funds. These proceeds were used to purchase property that will now be forfeited to the United States.
Artan’s actions resulted in approximately $1,682,664 lost from Federal Child Nutrition Program funds due to fraudulent claims.
Artan entered his guilty plea before Judge Eric C. Tostrud at the U.S. District Court with sentencing scheduled for a later date.
The investigation was conducted by the FBI along with IRS – Criminal Investigations and the U.S. Postal Inspection Service.
The prosecution is being handled by Acting U.S. Attorney Joseph H. Thompson alongside Assistant U.S. Attorneys Matthew S. Ebert, Harry M. Jacobs, Daniel W. Bobier while Assistant U.S Attorney Craig Baune manages asset seizure and forfeiture.
