Minnesota Daycare Owner From Viral Video Pleads Guilty to $5.5M Fraud and Trying to Flee the Country

Mahamud, whose identity was not fully disclosed in court documents, pleaded guilty to charges of wire fraud and attempted flight to avoid prosecution. The plea was entered in federal court on Tuesday, according to the U.S. Attorney's Office for the District of Minnesota.

The fraud involved two separate schemes. In the first, Mahamud submitted fraudulent claims to Minnesota's Child Care Assistance Program, a federally funded initiative that helps low-income families afford childcare. The false claims totaled approximately $4.6 million, which Mahamud pocketed for personal use.

In the second scheme, Mahamud participated in the pandemic-era Feeding Our Future program, which provided federal funds for meals to children in need. Mahamud submitted claims for meals that were never served, netting more than $850,000 in illicit proceeds.

The case gained attention after a viral video surfaced showing Mahamud in a confrontation, which led to an investigation. When authorities began closing in, Mahamud attempted to flee the country, but was apprehended before leaving.

Sentencing is scheduled for later this year. Mahamud faces up to 20 years in prison on each count, as well as fines and restitution. The U.S. Attorney's Office said the plea agreement requires Mahamud to forfeit the proceeds of the fraud.