Man indicted in $4 million pandemic fraud case turns himself in, officials say

A Minneapolis man accused of stealing $4 million from Federal Child Nutrition Program during the Covid-19 pandemic surrendered to the FBI on Thursday, federal officials announced in a statement.

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Said Abdullahi Ereg was indicted on June 24, 2024 on charges of including conspiracy to commit wire fraud, wire fraud, and money laundering.

Ereg allegedly obtained, misappropriated and laundered millions of dollars meant to feed children in need, officials said.

“Today’s arrest is historic,” said FBI director Kash Patel in a different statement.

It was not immediately clear if Ereg has retained a lawyer.

Ereg was added to the Justice Department’s “Most Wanted Fraudster” list last week and is the first person to be arrested, Patel said.

The list was established by federal officials to “bring to justice the alleged worst of the worst who took advantage of American taxpayers and stole public funds, and let them know that the days of Washington, D.C. turning a blind eye to fraud are over,” Patel said in the statement.

Officials said Ereg ran a grocery story and deli in Minneapolis that was sponsored by the nonprofit Feeding Our Future. The organization, founded in Minnesota in 2016, has recently been at the center of a federal investigation into what federal officials have called “the single largest COVID-19 fraud scheme in the country.”

Aimee Block, former leader of Feeding Our Future, was convicted last month in a $250 million fraud case that helped ignite an immigration crackdown by the Trump administration.

The group was part of a large fraud network that included partner organizations, fake distribution sites, kickbacks and false lists of children supposedly being fed, prosecutors said in Block’s indictment.

Ereg allegedly participated in the scheme during a one year-period starting in 2020. He is accused of submitting false reimbursement claims and received more than $4.2 million in federal funds.

A federal arrest warrant was issued for Ereg after he was charged, but he was living overseas at the time and his whereaouts were not known.

He surrendered to FBI agents at the Minneapolis-St. Paul International Airport.

“This case sends a clear message: being outside the United States does not place you beyond the reach of HSI and our law enforcement partners,” said Homeland Security Investigations Special Agent in Charge Michael McCarthy. “Our commitment is unwavering: those who exploit programs intended to support children and families will be identified, investigated, and brought to justice here in Minnesota.”

Ereg’s wife, who worked with him, pleaded guilty last year to one count of money laundering. She is scheduled to be sentenced next week.