Fahima Mahamud, 50, has pleaded guilty to fraud related to a Minneapolis day care center she operated that defrauded the federal government of millions of dollars.
Prosecutors allege Mahamud falsely billed the government $854,000 in reimbursements under the Feeding Our Future scam while claiming to have provided up to 60,000 meals for needy children monthly. Instead of using the funds for child care, she diverted most of the ill-gotten gains to purchase real estate.
Among her acquisitions was an autism center that later billed the federal government $3.1 million over five years. Mahamud also fraudulently submitted child-care expenses through the Child Care Assistance Program, enabling her to scam a total of $4.6 million from taxpayers.
She pleaded guilty to one count of wire fraud and one count of conspiracy to defraud the United States, with no sentencing date set.
