DOJ’s New Fraud Unit Blocks $340M In Schemes During First Week
The Department of Justice announced Friday that its newly formed National Fraud Enforcement Division (NFED) prevented fraud schemes targeting roughly $340 million in taxpayer funds during its first week of operation, with more than $10 million already recovered through restitution.
The division’s most significant early case involved the sentencing of Abdullahe Nur Jesow to three years and seven months in prison for his role in a massive $250 million fraud tied to a child nutrition program during the COVID-19 pandemic. Prosecutors said the operation, run out of a fraudulent site in Minneapolis, diverted funds intended to feed children into luxury purchases and overseas real estate.
Jesow was ordered to repay $866,458, while co-conspirators Gandi Mohamed and Suleman Mohamed were hit with restitution orders totaling nearly $10 million combined after pleading guilty in the Feeding Our Future case.
In a separate case, federal prosecutors secured a guilty plea from a former San Diego teacher accused of submitting nearly $51 million in fraudulent Medicare claims. Authorities said at least $14 million was laundered, with millions more distributed through illegal kickbacks.
Additional enforcement actions included restitution of over $933,000 from an Oregon-based unemployment fraud scheme and charges against a Pennsylvania individual accused of misusing COVID relief funds. Authorities also arrested five suspects across Indiana, Kentucky, and Colorado in connection with a $1.6 million fraud operation.
Department of Justice officials said the cases highlight the scale and complexity of fraud targeting federal programs. Assistant Attorney General Colin McDonald said the division is focused on pursuing fraud at every level, regardless of the dollar amount involved.
The NFED was launched earlier this month under the direction of Acting Attorney General Todd Blanche, who warned that more than $1 trillion in federal funds could be vulnerable to fraud each year.
Vice President JD Vance is leading a broader interagency task force aimed at identifying and eliminating fraud across federal benefit programs, including high-risk areas such as healthcare services and pandemic-related relief funds.
Officials say the early results signal an aggressive push by federal authorities to clamp down on large-scale fraud operations and recover taxpayer money.