A Kenyan man has been indicted in the United States in connection with a multi-billion shilling fraud scheme that syphoned Covid-19 relief funds meant to feed vulnerable children in the U.S.
According to the U.S. Attorney General's Office, the 28-year-old is accused of conspiring to commit international money laundering by channelling the fraudulent proceeds into construction projects in Nairobi.
The man, who is a resident of Kenya, was named the 74th defendant in what U.S. authorities have described as the largest Covid-19 fraud scheme in the country. The case revolves around the Feeding Our Future programme, a federal initiative designed to provide free meals to children during the pandemic.
Instead, investigators allege that over Ksh5.16 billion ($40 million) was misappropriated, laundered, and diverted into private enrichment schemes.
Acting U.S. Attorney Joseph H. Thompson, while announcing the indictment, condemned the exploitation of the programme, describing it as an affront to struggling families. “I share the outrage of my fellow Minnesotans at seeing money meant to feed hungry children converted into fortunes half a world away,” Thompson stated. “We must protect the future of our children and our state.”
Court documents reveal that the suspect's brother was the leader of the so-called “Empire” group and the lead defendant in the first Feeding Our Future trial. The brother was recently sentenced to 28 years in prison by U.S. District Judge Nancy E. Brasel for orchestrating the scheme.
The 36-year-old was convicted of leading a multi-million-dollar fraud scheme involving a government-funded programme meant to feed underprivileged children during the pandemic.
He was accused of syphoning at least $42 million (Ksh5.4 billion) from the programme and diverting the funds to purchase luxury goods and invest in properties, including the high-rise under construction in Nairobi, according to court documents.
The court heard that the businessman pocketed about $8 million (Ksh1.03 billion) for personal use, purchasing luxury cars, funding a lavish lifestyle in the United Arab Emirates, and developing real estate in Nairobi.
Meanwhile, between 2020 and 2022, Abdiaziz and his associates are alleged to have carried out the elaborate scheme by fabricating records of children fed, inflating invoices, and creating shell companies to syphon the funds.
Prosecutors allege the indicted suspect was instrumental in laundering millions of these proceeds to Kenya, where the money was used to finance real estate developments through sham entities and cash smuggling.
The indictment claims the suspect’s role was to shield the illicit funds from U.S. federal investigators by masking their true source and channelling them into the high-value construction projects in Nairobi.
