Minnesota Daycare Owner Charged in Federal Benefits Fraud Case

Federal prosecutors charged Fahima Egeh Mahamud, 50, CEO of Future Leaders Early Learning Center, with conspiracy to defraud the United States and wire fraud. Prosecutors allege she submitted more than 13,000 false claims to Minnesota's Child Care Assistance Program between 2022 and 2025.

6 million in improper reimbursements. The daycare charge is separate from an earlier February indictment in which Mahamud was charged with wire fraud in the Feeding Our Future meal-fraud scheme.

The new charges come after Aimee Bock, former leader of Feeding Our Future, was sentenced to nearly 42 years in prison. Federal authorities announced charges against 15 additional people accused of stealing from seven state-managed Medicaid programs, with total losses estimated at roughly $90 million.

One case involves Minnesota's Early Intensive Developmental and Behavioral Intervention program. Prosecutors allege an autism services scheme worth more than $40 million that included kickbacks to parents and billing for services not provided.

Federal prosecutors have also examined Minnesota's Housing Stabilization Services program. Program costs grew from an expected $2. 5 million from the program using fake client notes. The Justice Department has described Feeding Our Future as the largest COVID-19 fraud scheme in the country, with losses estimated at roughly $250 million.

The cases involve allegations of fake diagnoses, inflated claims, and services billed but not delivered.