They Investigated Pandemic Fraud, Then Earned Thousands

The New York Times ^ | Nov. 23, 2024, 5:00 a.m. ET | Madeleine Ngo

[E. Pluribus Unum]

When J. Bryan Quesenberry first learned that the federal government was sending out hundreds of billions of dollars to help businesses survive during the Covid-19 pandemic, he thought: “There’s going to be fraud here. There just has to be.”

A few months later, Mr. Quesenberry started sifting through a list of businesses that received Paycheck Protection Program loans, which were intended to help small businesses ravaged by the pandemic continue paying their employees. The Oregon lawyer said he knew businesses were not allowed to receive more than one loan during a single round, so he searched for “double dippers.”

He soon found dozens of businesses across the country that appeared to improperly obtain P.P.P. loans. During the summer of 2020, Mr. Quesenberry started suing those firms to try to help the government recover funds.

“It just blows my mind,” Mr. Quesenberry said. “That’s tax money that comes out of your pocket and that comes out of my pocket.”

As federal officials try to retrieve billions in stolen pandemic relief funds, private citizens are scouring public data, company websites and social media pages to help identify potential cases. Those who have filed suits say they are motivated by the desire to root out wrongdoers and expose corporate fraud.

But there is also a strong financial incentive. Under the False Claims Act, private citizens can file lawsuits on behalf of the federal government against those who may have defrauded the United States. If the government recovers funds, those citizens can typically earn between 15 and 30 percent of that amount.

That has allowed some private citizens to earn hundreds of thousands of dollars, or in some cases more than $1 million, for chasing pandemic relief fraud.

The practice has stirred up some controversy. Some argue that the provision was meant...

[Ge0ffrey]

Now the NY Times is worried about wasted taxpayer money? What’s the catch?

[Liz]

justice.gov——During the COVID-19 pandemic, the US Dept of Agriculture waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs.

In total, seventy Somali defendants have been charged across 14 indictments and six criminal informations. To date, eighteen defendants have entered guilty pleas. The following five defendants, named in the United States v. Abdiaziz Shafii Farah, et al., 22-CR-124 (NEB/TNL) indictment, were found guilty by a federal jury:

<><>Abdiaziz Shafii Farah, of Savage, Minnesota, was convicted of one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of conspiracy to commit federal programs bribery, two counts of federal programs bribery, one count of conspiracy to commit money laundering, 11 counts of money laundering, and one count of false statements in a passport application. Abdiaziz Farah was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.

<><>Mohamed Jama Ismail, of Savage, Minnesota, was convicted of one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering. Ismail was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.

<><>Abdimajid Mohamed Nur, of Shakopee, Minnesota, was convicted of one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit money laundering, and four counts of money laundering. Abdimajid Nur created Nur Consulting LLC to receive and launder Federal Child Nutrition Program funds from Empire Cuisine and Market, ThinkTechAct, and other entities involved in the scheme.

<><>Mukhtar Mohamed Shariff, of Bloomington, Minnesota, was convicted of one count of conspiracy to commit wire fraud, one count of wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering. Shariff was the chief executive officer of Afrique Hospitality Group, a company used to fraudulent obtain and launder Federal Child Nutrition Program funds.

<><>Hayat Mohamed Nur, of Eden Prairie, Minnesota, was convicted of one count of conspiracy to commit wire fraud and two counts of wire fraud. Hayat Nur, the sister of Abdimajid Nur, participated in the scheme by creating and submitting fraudulent meal count sheets, attendance rosters, and invoices.

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United States Attorney Andrew M. Luger thanks the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work on this case.

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Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, Chelsea A. Walcker, and Daniel W. Bobier tried the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

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Isnt it “odd” how these Somalis knew all the ins and outs of federal fraud?
Did they have someone in Congress cluing them in?

[Robert DeLong]

Okay, and they deserve it for rooting to uncover the frauds. What they are not doing is committing fraud, so what is your point NY Slimes? You yourself commit frauds on a daily basis acting as if you are a legitimate news source, because you knowingly write false accounts for the benefit of the Democrats continuously.

[glorgau]

Same thing as turning in tax cheats.

[Theoria]

PPP was another con on the rest of the cons put out during covid. PPP pumped up real estate all around the US. The US is full of locations where 2nd homes were purchased using names and addresses of PPP recipients around the time of the program. What a scam.

[fella]

Could a similar program work for illegal aliens? Where a reporter would receive a percentage of the recovered ill-gotten gains of a reported illegal alien? May have to wait until property is auctioned off.

[thinden]

jizyah. their idea of the american dream

[Liz]

Yup——free to practice their....uuuhhhh....”religion”
and steal as much as they can while “doing good.”

[Liz]

When the NYT reports 15% of PPP taxpayer funded giveaways
are fraudulent....... you can safely say its closer to 50% fraud.

[The_Media_never_lie]

jizyah. their idea of the american dream

__________________________________

My gosh, we have to flush out this fraud and they should not even be here!

[The_Media_never_lie]

Paycheck Protection Program loans,

______________________________

Now, what ever could possibly go wrong with this program?

[The_Media_never_lie]

Workfare for Somalians?