Somali Immigrant Who Directed Public Housing in Minneapolis Confesses to Multi-Million Dollar Theft
Sharmarke Issa stands accused of orchestrating a staggering $7.6 million of the $50 million heist from the Feeding Our Future (FOF) nutrition program. Out of this, he pocketed a whopping $3.5 million, which he must repay as restitution.
A former Somalian refugee and the chair of the Minneapolis Public Housing Authority (MPHA), Issa, 40, of Edina, admitted to federal wire fraud charges on Wednesday. Court records reveal he masterminded a complicated money-laundering scheme that siphoned funds meant for feeding children during the COVID pandemic.
Assistant U.S. Attorney Matthew Ebert explained that Issa was at the helm of $7.6 million of the FOF fraud. Issa personally took $3.5 million, money he must now pay back, and he must also forfeit properties bought with the illegal gains.
The defendant operated entities that funneled the federal funds through a nonprofit named Minnesota’s Somali Community and Wacan Restaurant LLC, laundering the money along the way.
During the court proceedings, Issa acknowledged the timeline and his culpability, per a Minnesota Star Tribune report. Because of his plea agreement, additional charges for wire fraud and money laundering will be dropped. Instead of a maximum 20-year sentence, he’ll likely serve 33 to 41 months in federal prison.
U.S. District Judge Nancy E. Brasel will consider Issa’s acceptance of responsibility and his otherwise clean criminal record when deciding his sentence.
Historically, Issa was a trailblazer. He was the first immigrant appointed to chair the MPHA Board of Commissioners by the Minneapolis City Council. At the time, Democratic Mayor Jacob Frey praised him as a “capable caretaker.”
“Sharmarke grew up in Minneapolis public housing after arriving here as a refugee. His success story underscores how crucial public housing is for our city,” Mayor Frey noted, according to Front Page. “His personal journey and urban planning expertise are vital for MPHA’s mission. With federal housing funding dwindling, he’s a capable steward who prioritizes the needs of residents.”
However, Issa’s tenure ended abruptly in February 2022 when an investigation began concerning one of his properties. The case unfolded further in September 2022, with charges filed against 47 individuals linked to the fraud scheme. Five Somali nationals were convicted in June for wire fraud, federal program bribery, and money laundering.
The Department of Justice labeled the scheme as one of the most significant fraud cases they’ve encountered in years.
