US authorities arrested Abdiaziz Farah who is being probed for involvement in a scheme that allegedly defrauded the US government of over Sh3.7 billion.
FBI traces proceeds of Sh3.7billion US scam to Kenya, 2 arrested
One of the suspects was arrested on transit after booking a flight to Nairobi
FBI traces proceeds of Sh3.7billion US scam to Kenya, 2 arrested
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Abdiaziz is said to be an accomplice of Mohamed Jama Ismail who was earlier arrested in April while travelling to the Jomo Kenyatta International Airport in Nairobi.
Both suspects have also been charged with passport fraud after they applied for new documents despite their original ones being seized by the FBI in January.
Abdiaziz Farah who is being probed for involvement in a scheme that allegedly defrauded the US government of over Sh3.7 billion.
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According to documents from the US Department of Justice, the two are being investigated for allegedly receiving at least $30 million (Sh3.7 billion) by defrauding the US Federal Child Nutrition Program by pretending to offer affordable meals to children.
Some of the proceeds of the scam were traced to shell companies in Kenya.
Details of the $30 million (Sh3.5 billion) fraud
According to court documents, the suspects are targets of a federal investigation into the misappropriation of the US government’s Child Nutrition Program funds.
During the investigation, law enforcement identified several companies that were receiving a suspiciously high amount of reimbursements under the Federal Child Nutrition Program.
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Ismail Mohamed who was arrested on the jetway is also accused of defrauding the US government Sh3.5 billion and wiring some of the money to Nairobi
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It was alleged that the duo owned and controlled some of the companies that he and other accomplices used to fraudulently obtain, launder, and misappropriate millions of dollars.
The probe showed that most of the funds were misappropriated and sent through shell companies, and some of the money was transferred to Kenya.
“Bank records also show more than $700,000 (Sh81 million) in Federal Child Nutrition Program funds were wired from Empire Enterprises LLC (previously transferred from Empire Cuisine & Market) to Nairobi, Kenya in 2021,” read a document from the US Department of Justice.
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