Historic First Arrest Under New Federal Fraud Initiative
A former Minneapolis grocery store owner has become the first person arrested from the FBI’s newly established Most Wanted Fraudsters list, marking a significant early milestone for a White House-backed effort to combat government fraud. Said Abdullahi Ereg, 47, surrendered to federal authorities just one day after the list went public.
Ereg, who previously operated Evergreen Grocery and Deli in south Minneapolis, faces charges of conspiracy to commit wire fraud, wire fraud, and money laundering. Federal authorities say he had been wanted on those charges since 2024.
What Happened
According to federal authorities, Ereg exploited a federally funded child nutrition program by falsely claiming his grocery and deli operation was serving meals to children in need. The business operated under the sponsorship of Feeding Our Future, a Minnesota nonprofit that had been at the center of a broader federal fraud investigation.
Prosecutors allege Evergreen Grocery and Deli submitted claims indicating it served more than 3,000 meals twice a day, every day of the week — numbers authorities say were fraudulent. The alleged scheme drained more than $4 million from the Federal Child Nutrition Program.
Investigators say Ereg then moved the illegally obtained funds through foreign accounts and used the proceeds to fund a lavish lifestyle. His wife, Najmo Ahmed, who worked at the business and received payroll payments through Feeding Our Future, has already pleaded guilty to money laundering charges and is scheduled for sentencing later this month.
Ereg did not flee or resist; he contacted authorities through his attorney and surrendered voluntarily, one day after the FBI released its new fraud list.
By the Numbers
- $4+ million allegedly defrauded from the Federal Child Nutrition Program
- 3,000+ meals claimed to be served twice daily — figures prosecutors say were fabricated
- 47 — Ereg’s age at time of arrest
- 1 day — time between release of the Most Wanted Fraudsters list and Ereg’s surrender
- 3 charges — conspiracy to commit wire fraud, wire fraud, and money laundering
FBI Director Responds
FBI Director Kash Patel called the arrest historic, describing it as the first-ever apprehension of a subject placed on the Most Wanted Fraudsters list, which was released in coordination with the White House Task Force to Eliminate Fraud. “This historic result is only the beginning,” Patel said, “and let it be a message to any fraudster who takes advantage of America — this team will find you.”
The Justice Department has established a National Fraud Enforcement Division to support the task force, which is led by Vice President J.D. Vance. Federal officials say the initiative is aimed at recovering taxpayer dollars lost to fraudulent claims across government assistance programs.
Zoom Out
The Feeding Our Future investigation has been one of the largest pandemic-era fraud cases in the country. Federal prosecutors have pursued numerous defendants connected to the Minnesota nonprofit, alleging a wide-ranging conspiracy to submit false reimbursement claims through child and adult nutrition programs that were expanded during COVID-19.
The broader federal crackdown on benefits fraud reflects a growing emphasis under the current administration on recovering funds lost through falsified claims in programs ranging from nutrition assistance to immigration detention oversight. Officials argue that pandemic-era program expansions created vulnerabilities that bad actors exploited at scale.
Minnesota has been a focal point for several recent federal enforcement actions involving both financial fraud and immigration-related matters, reflecting the state’s complex intersection of federal program administration and large immigrant communities.
What’s Next
Ereg’s case now moves through the federal court system. His wife, Najmo Ahmed, faces sentencing in the coming weeks following her guilty plea to money laundering. Federal officials have signaled the Most Wanted Fraudsters list will continue to be updated, with the Ereg arrest serving as a public demonstration of the initiative’s intended deterrent effect.