Attorney General Ellison files false claims lawsuits against businesses and individuals for child nutrition fraud
Two civil lawsuits — against Nasib Bakery, and East African Healthcare Network and related entities and individuals — allege defendants submitted millions in false claims to Minnesota Department of Education
AG Ellison alleges violations of Minnesota False Claims Act, seeks treble damages and civil penalties; Attorney General’s authority to prosecute food fraud is civil, not criminal
October 26, 2026 (SAINT PAUL) — Minnesota Attorney General Keith Ellison filed two civil lawsuits in Hennepin County today against businesses and individuals for their involvement in COVID-19 pandemic-era child nutrition fraud. Attorney General Ellison alleges that the defendants — Nasib Bakery and its former owner Abshir Hossen in one lawsuit, and East African Healthcare Network and its founder Abdinasir Elmi, along with other affiliated entities and individuals, in the other — violated the Minnesota False Claims Act by submitting millions in false claims to the Minnesota Department of Education (“MDE”).
Federal child nutrition programs provide funding to ensure that children have consistent access to healthy, nutritious foods. MDE administers federal nutrition programs in Minnesota, which are funded by the U.S. Department of Agriculture. The Attorney General’s authority over child nutrition fraud is civil, not criminal. In today’s lawsuits, Attorney General Ellison is exercising his civil enforcement powers under the Minnesota False Claims Act.
“People and organizations that steal from government programs that are supposed to support children and vulnerable folks in our community infuriate all Minnesotans and me and erode public trust,” Attorney General Ellison said. “The lawsuits we’ve filed today are the latest in our work to use our civil Minnesota False Claims Act authority to hold accountable the businesses and individuals that shamelessly exploited government food programs intended to feed Minnesota’s children.”
Civil lawsuit against Nasib Bakery and its former owner
The Attorney General’s lawsuit against Nasib Bakery Food Distribution LLC (“Nasib Bakery”) and its former owner, Abshir Hossen, alleges that the defendants violated the Minnesota False Claims Act by submitting false claims, or causing the submission of false claims, to the Minnesota Department of Education (“MDE”) and falsifying records in support of those false claims.
As Attorney General Ellison alleges in the complaint, from October 2020 to April 2021, Nasib Bakery served as the vendor for a site known as “Riverside Park,” which Partners in Nutrition (“PIN”) sponsored. Under federal program rules, sponsors are responsible for overseeing and managing food distribution sites. During that time, Riverside Park, as vended by Nasib Bakery, purported to serve over 430,000 breakfasts and 430,000 lunches, claiming over $2 million in reimbursement for those six months.
Records show that many of those claims were false and many of the meals claimed were never served. Despite claiming to serve at least 860,000 meals and receiving over $2 million in government funds, the defendants spent only a fraction of that money on food supplies. Instead, more than $1 million went directly into Mr. Hossen’s personal bank account and was used to purchase properties, pay off his mortgage, and invest in various companies.
Civil lawsuit against East African Health Network and related entities and individuals
In a second lawsuit filed today, the Attorney General alleges that a sprawling network of four companies and six individuals, with a Minnesota nonprofit corporation East African Healthcare Network (“EAHN”) at its center, worked in concert to likewise violate the Minnesota False Claims Act by submitting false claims, or causing the submission of false claims, to the Minnesota Department of Education (“MDE”) and falsifying records in support of those false claims.
In the complaint, the Attorney General alleges that EAHN and its founder, Abdinasir Elmi, were at the center of a scheme that from 2020 to 2022, claimed to serve more than 3 million meals funded by federal nutrition programs. Elmi worked with several vendors and individuals in claiming to serve over a dozen meal sites that were, at times, sponsored by PIN, but also at other times, sponsored by EAHN. During this time, EAHN and its co-defendants claimed more than $10 million in reimbursements.
The Attorney General’s investigation revealed that these relationships were riddled with conflicts of interest. In fact, EAHN, Elmi, and others personally profited from providing federally funded meals, in violation of program restrictions. EAHN and its vendors’ meal documentation also contain numerous indicators of fraud and does not support the number of meals they claimed to serve.
Both the Attorney General’s lawsuits filed today seek treble damages, civil penalties per false claim, injunctive relief, and recovery of his Office’s attorney fees and costs in connection with the investigation and litigation.
Attorney General Ellison’s recovery of child nutrition fraud dollars under civil False Claims Act
The pair of lawsuits filed today are the most recent examples of Attorney General Ellison’s use of his civil enforcement authority in the Minnesota False Claims Act to pursue and recover wrongfully obtained taxpayer money.
In a related case, on September 24, 2026, Attorney General Ellison sued and filed a proposed settlement with PIN, the program sponsor responsible for overseeing and managing food distribution sites. PIN submitted claims on behalf of the defendants in today’s lawsuits. In the PIN lawsuit, Attorney General Ellison alleged that from October 2020 to February 2022, PIN took advantage of its role as food program sponsor by knowingly and repeatedly submitting false claims for meals that were not served and facilitating widespread fraud in the food distribution sites it claimed to be monitoring.
The proposed settlement with PIN recovers $18.5 million in public funds — the entirety of PIN’s remaining assets, which will be returned to MDE — and requires PIN to dissolve. The court has set a hearing for December 15, 2026 to review the parties’ settlement.
Importantly, the proposed settlement with PIN does not release PIN employees, site operators, or vendors associated with PIN from their civil liability and the Attorney General’s Office will continue to investigate and civilly prosecute those individuals and entities where it finds evidence of False Claims Act violations.
The Attorney General’s civil False Claims Act investigation into PIN began in mid-2025, after MDE confirmed with the U.S. Attorney's Office that it had no objection to a state civil False Claims Act investigation into PIN and MDE subsequently referred the matter to the Attorney General's Office.
On June 12, 2026, Attorney General Ellison announced his Office secured a court order requiring Emaldeldin Ibrahim to repay $2.5 million to the Minnesota Department of Education for making fraudulent submissions for reimbursement under the federal Child and Adult Care Food Program. The order came after a four-day civil jury trial that ended on April 28, 2026, when Attorney General Ellison’s Office secured a verdict of guilty against Ibrahim for violations of the Minnesota False Claims Act.
At the April trial, Attorney General Ellison’s Office presented evidence to the jury that Ibrahim knowingly misrepresented his affiliation with the Sudanese American Community Association of Minnesota so he could participate in CACFP, that he knowingly submitted reimbursement claims for meals and snacks that were not served to children, and that he knowingly submitted reimbursement claims for snacks and meals that did not comply with the federal regulations governing the provision of that food.
Attorney General’s authority over federal child nutrition fraud is civil, not criminal
The legal authority of the Attorney General’s Office over federal child nutrition fraud is civil: criminal authority rests with the federal government or county attorneys. Since 2021, the U.S. Attorney’s Office for the District of Minnesota and other federal agencies have taken the lead in investigating and criminally prosecuting federal child nutrition fraud, with the partnership and cooperation of MDE, MDE’s Office of Inspector General, and the Attorney General’s Office.
If you have concerns about the misuse of government funding, please file a complaint with the Attorney General’s Office via its online complaint form. You may also contact the Office by phone at (651) 296-3353 (Metro area) or (800) 657-3787 (Greater Minnesota).
