Guhaad Hashi Said, 49, 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 a large-scale scheme that took advantage of the Federal Child Nutrition Program during the COVID-19 pandemic. The announcement was made by 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.”
According to court documents, between December 2020 and January 2022, Said worked with others to obtain millions in federal funds meant for providing meals to underprivileged children. He set up Advance Youth Athletic Development as a nonprofit on February 26, 2021, listing its office at a residential apartment in Northeast Minneapolis.
Said claimed through his organization that they were serving 5,000 meals per day seven days a week starting March 2021 and submitted claims for over one million meals between March and December that year. However, investigations found these numbers were highly exaggerated; only a fraction of those meals were actually served while false paperwork supported their reimbursement claims.
In addition to submitting fraudulent meal counts and invoices, Said also took part in money laundering activities from August 2020 through 2022. Along with co-conspirators, he used various nonprofits and limited liability companies as shell entities to hide proceeds from their fraudulent activities. After laundering these funds—nearly $2.9 million—they bought real estate, cars, and other items.
For example, after registering Advance Youth Athletic Development as a nonprofit and opening its bank account on April 1, 2021, Said transferred more than $2.1 million from its accounts to S & S Catering between August and December 2021 under the pretense that it was for providing food services.
Said’s sentencing date has not yet been scheduled but he could face up to 25 years in prison if convicted on all charges.
“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. “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 collaboration among multiple agencies including the FBI’s Minneapolis Division (https://www.fbi.gov/contact-us/field-offices/minneapolis), IRS – Criminal Investigation (https://www.irs.gov/compliance/criminal-investigation), and U.S. Postal Inspection Service (https://www.uspis.gov/).
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; Assistant U.S Attorney Craig Baune oversees asset seizure proceedings.
