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Minneapolis Daycare Owner Charged in $5.45 Million Pandemic‑Era Fraud

Prosecutors say the case reveals false meal counts plus bogus co-pay certifications used to secure millions in federal pandemic relief funds.

Overview

  • Federal charges were unsealed Wednesday against Fahima Egeh Mahamud, accusing her of wire fraud and conspiracy to defraud the United States connected to pandemic-era childcare and nutrition programs.
  • Prosecutors allege Mahamud submitted roughly 13,000 claims to Minnesota’s Child Care Assistance Program from October 2022 to December 2025 that produced about $4.6 million in reimbursements by falsely certifying required family co-payments.
  • Court filings say Future Leaders Early Learning received about $850,000 from the Federal Child Nutrition Program in 2021 while claiming to serve far more meals than it actually did, and that Mahamud used inflated invoices and rosters to support those claims.
  • Authorities allege Mahamud diverted much of the money to buy real property and to companies tied to her, that she tried to book a flight to London after closing the center in February, and that she is now under house arrest.
  • The charges tie into the broader Feeding Our Future investigation prompted by a viral investigative video and followed a coordinated multiagency enforcement effort that has produced dozens of indictments and nearly 100 people charged so far.