In a shocking revelation, Sharmarke Issa, a 40-year-old Somalian immigrant and former chair of the Minneapolis Public Housing Authority (MPHA), admitted to federal wire fraud charges this Wednesday.
Issa, who resided in Edina, was accused of masterminding a money laundering operation that swindled millions through fictitious vendors for the Feeding Our Future (FOF) scheme, as per the prosecution's claims.
As reported by the Daily Caller, Issa's illicit activities led to the Minnesota Department of Health and FOF sponsors squandering over $7.4 million from the Federal Child Nutrition Program, as indicated in court documents. Issa, along with his four co-defendants, who are set to face trial in November, allegedly operated shell companies to siphon money from the FOF operation. This ill-gotten wealth was then used to acquire assets such as real estate.
Issa's appointment as the chair of MPHA in 2019 by the Minneapolis City Council was a historic moment. He was the first East African and the first individual not born in the U.S. to hold this position, as per Insight News. Furthermore, he was the first Somali immigrant to lead a U.S. public housing agency's governing board.
However, the money laundering scheme orchestrated by Issa resulted in a staggering loss of $50 million to the federal government, as stated by Assistant U.S. Attorney Matthew Ebert. In 2022, Issa was indicted with charges of wire fraud, money laundering, and conspiracy, according to a Department of Justice press release. He was the founder of the company Minnesotas Somali Community and also managed Wacan Restaurant LLC.
The Sahan Journal reported that Issa misused funds intended for low-income children to purchase a lavish $700,000 house. He reportedly declined to comment after his hearing on Wednesday. Issa also confessed to depositing $341,000 from another accused, Haji Osman, into his bank account under the guise of a donation, admitting that it was fraudulent. Osman, however, has not been convicted.
Both Issa and the prosecution agreed to a recommended sentence of two-and-a-half to three-and-a-half years in prison, along with approximately $3.6 million in restitution. Issa vacated his position in February 2022 amidst a federal investigation into a building he co-owned. The federal government alleged that this building was bought with funds meant to nourish children. The building was linked to the scandal shortly after Issa filed to forfeit it. At the time of his resignation, Issa cited "personal matters" as the reason to The Star Tribune.
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