Minnesota Daycare Owner Faces Federal Fraud Charges
Federal fraud charges have been unsealed against Fahima Mahamud, a Minnesota daycare owner. Prosecutors allege she tried to flee the country two days after closing her daycare center, Future Leaders Early Learning.
The daycare is accused of pretending to feed children during the pandemic. Instead, the center allegedly pocketed substantial amounts of money. Mahamud faces charges of wire fraud and conspiracy to defraud the United States through Minnesota’s Child Care Assistance Program (CCAP), according to a federal indictment.
Mahamud is under house arrest. She is accused of misappropriating taxpayer funds intended to help families provide food for their children. Prosecutors claim her center falsely claimed to serve 60,000 children monthly, falsifying invoices for reimbursement.
Between January and July 2021, the daycare received over $850,000 in federal funds through Feeding Our Future. This nonprofit is central to what authorities describe as a $250 million fraud scandal. Only a small portion of these funds was used to buy food. Court documents indicate that in 2020 and 2021, Mahamud claimed to have served two meals daily to 1,000 children, seven days a week.
From 2022 to 2025, Mahamud reportedly filed about 13,000 claims for $4.6 million in reimbursements through CCAP without collecting required co-payments. Future Leaders Early Learning was among 10 Minneapolis daycares visited by YouTuber Nick Shirley in December, and Mahamud’s operation was featured in a viral video.
State license inspectors visited the daycare on November 10, 2025, citing it for lacking cleanliness and incomplete immunization records. In February, Mahamud informed the state of the daycare’s closure and booked a flight to London the same day.
In April, federal agents conducted raids on at least 20 Minnesota daycares and autism centers. It’s uncertain if Future Leaders Early Learning was included. Nearly 100 individuals have been charged in the Feeding Our Future scheme so far.
The Justice Department announced it would hold a news conference to reveal a significant law enforcement action involving fraud in Minnesota. Participants include acting Attorney General Todd Blanche, Health and Human Services Secretary Robert F. Kennedy Jr, and Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services.