The owner of a Minneapolis daycare, prominently featured in a controversial YouTube video about Somali fraud, has been accused of embezzling $4.6 million in government funds, according to prosecutors.
Fahima Mahamud, 50, has been arrested amid a federal crackdown in Minnesota, where authorities have charged 15 individuals over suspected fraudulent schemes involving a staggering $90 million in taxpayer money.
Colin McDonald, the U.S. Assistant Attorney for Fraud Enforcement, disclosed ongoing cases tied to seven Medicaid programs, which he claims were exploited by fraudsters treating Minnesota’s initiatives as their “personal piggy bank.”
“The level of fraud in Minnesota is alarming,” McDonald stated during a press briefing.
The Trump administration intensified efforts to combat fraud in Minnesota following a revealing video by independent journalist Nick Shirley. This exposé highlighted several Somali-operated daycare centers, including one notably misspelled as the Quality ‘Learing’ Center.
According to prosecutors, Mahamud allegedly submitted false claims for federal food assistance reimbursements while serving as the CEO of the Future Leaders Early Learning Center.
Mahamud allegedly submitted over 13,000 claims between October 2022 and December 2025, resulting in $4,629,929 in taxpayer-funded reimbursements from the Child Care Assistance Program administered by the Minnesota Department of Human Services.
At times, Mahamud claimed that she was serving two meals a day to about 1,000 different children, seven days a week, according to the filing.
Fahima Mahamud, 50, was charged on Wednesday with conspiracy to defraud the United States after she allegedly stole $4.6 million in food assistance
Mahamud, who was the CEO of the Future Leaders Early Learning Center (pictured), claimed that she was serving two meals a day to about 1,000 different children, seven days a week
However, prosecutors say she knew those meal counts were ‘false and inflated,’ but submitted them anyway to keep the money for herself.
‘[Mahamud] diverted much of those taxpayer dollars for the purchase of real property, for the benefit of herself and to other companies,’ the court filing stated.
Mahamud’s business, the Future Leaders Early Learning Center, was one of several daycares featured in Shirley’s viral fraud investigation.
In the video, Shirley visited Mahamud’s daycare in December and was greeted by an unidentified woman who told him that he could not fill out an application to enroll a child.
One month later, Mahamud closed the Future Leaders Early Learning Center in January, KARE 11 reported.
In February, she was charged with wire fraud in connection with the Feeding Our Future scandal, the $250 million Somali-linked fraud scheme that prompted Donald Trump’s federal crackdown on Minnesota.
Prosecutors said Mahamud received $854,000 from the Federal Child Nutrition Program in the Feeding Our Future scheme between December 2020 and March 2023.
The Daily Mail contacted the US Attorney’s Office and Mahamud’s lawyer for comment.
Nearly 80 people have been charged with running a scheme through the Feeding Our Future non-profit to steal approximately $250 million in taxpayer dollars meant to feed hungry children.
Instead, the money was used to fund lavish lifestyles. Dozens of people, many in Minnesota’s large Somali community, have been convicted for their roles in a series of overlapping food fraud cases.
Last year, Trump said Somalis were ‘completely taking over’ Minnesota and accused the community of widespread fraud, which prompted the massive, unprecedented immigration enforcement operation.
Mahamud’s business was one of several Somali-run daycares featured in Nick Shirley’s viral fraud investigation
Shirley visited Mahamud’s daycare in December and was greeted by an unidentified woman who told him that he could not fill out an application to enroll a child
The mastermind behind the Feeding Our Future scheme, Aimee Bock, 45, was sentenced to more than 41 years in prison on Thursday morning.
She was convicted last March of multiple counts involving conspiracy, wire fraud, and bribery for her role.
US District Judge Nancy Brasel made an example of Bock as she sentenced her to prison and admonished her in front of the packed Minneapolis courtroom.
‘This was a vortex of fraud and you were its epicenter,’ Brasel told Bock. ‘A sentence of less than 500 months would not do justice to the people of Minnesota, who in a very real sense were the victims of this fraud.’
Assistant US Attorney Rebecca Kline told the court that the government believed that ‘disabling Aimee Bock from ever meaningfully participating in society ever again [was] the only just outcome.’
