Trial I · US v. Farah

Vol XXIII

2024-05-24

Day Overview

Friday, May 24, 2024 (Vol. XXIII) — pages 5479–5663. The day opened with the conclusion of Pauline Roase's cross-examination by Mr. Schleicher, who made important gains establishing that Bushra Wholesalers was not a shell company (had employees, warehouse, and actual food suppliers), that bank records alone do not show how money was used, and that the government never searched the warehouse. On redirect, the government countered by showing Diis Transportation received $486K and spent it on a personal car, self-transfers, and foreign wires — not food. The main event was the direct examination of second forensic accountant Lacra Blackwell, who systematically traced money from Feeding Our Future and Partners in Nutrition through ThinkTechAct Foundation, Empire Cuisine & Market, and Empire Enterprises to specific luxury purchases by each defendant. A critical mid-testimony legal battle erupted when defense counsel challenged Blackwell as an undisclosed expert witness under Rules 701/702/703; the court ruled her tracing methodology (FIFO) is lay opinion testimony, not expert testimony, relying on United States v. Blakstad. The day ended before cross-examination of Blackwell could begin — she returns Tuesday. The total amount traced to defendants by Blackwell: approximately $8.2 million, claimed to be over 97% derived from child nutrition funds.

Government Strategy

The government used this day to accomplish two distinct objectives. First, it completed its redirect examination of forensic accountant Pauline Roase (FBI), attempting to rehabilitate its bank-records narrative by showing that despite Bushra Wholesalers buying some food, the money sent to Diis Transportation went to personal enrichment (vehicles, foreign transfers) rather than food — reinforcing the core theory that program money was not used for legitimate program purposes. Second, and far more consequentially, the government launched Lacra Blackwell (FBI forensic accountant), a second tracing witness who spent the entire afternoon methodically connecting approximately $8.2 million in Federal Child Nutrition Program funds to specific luxury asset purchases by the defendants: real estate (including Abdiaziz Farah's $4.2M in properties in 6 months), vehicles (Porsche, Tesla, GMC Sierra, Dodge Ram, Hyundai Santa Fe), foreign wire transfers (Kenya, China, Dubai), Maldives travel, and even payments to a 'Do My Homework' service for Abdimajid Nur. The government's theory was to make fraud visceral: these men took children's food money and bought mansions.

Strategic Notes for Defense Counsel

- The FIFO methodology ruling is the most important legal event in this volume. The voir dire testimony is on the record: Blackwell testified that when a pool of funds has multiple sources, she 'shows all sources' and 'money is fungible.' This is an admission that her charts do not prove child nutrition funds specifically purchased any asset — only that such funds were among the sources. On cross, Defense counsel must obtain from Blackwell a complete list of non-program deposits into every traced account; if Empire Cuisine or ThinkTechAct had ANY revenue from legitimate food sales, catering, investments, or other sources, the attributions become probabilistic rather than definitive. The government will say 97% is close enough — Defense counsel must argue that 100% certainty is required for each specific money laundering count. - Partners in Nutrition (Kara Lomen, Executive Director of a PRIVATE sponsor organization) is the payment source for the majority of the traced dollars. She controlled claim approval, claim submission, and distribution of funds. She has never been charged, never been interviewed by the FBI, and never testified. Every time Blackwell says 'source was Partners in Nutrition reimbursement funds,' Defense counsel should ask: what verification did Partners in Nutrition perform before releasing those funds? If Lomen approved inflated claims without verification, the causal chain from fraud to asset purchase runs through an uncharged, unexamined co-conspirator who bears primary responsibility. This is both a factual defense and a sentencing argument. - The 'Do My Homework' evidence (403) and Maldives videos are deeply prejudicial and likely the government's most effective devices for inflaming the jury against Abdimajid Nur. Defense counsel should move in limine to exclude such character evidence in any future trial, specifically arguing that lifestyle evidence is inadmissible to prove fraud when the government already has direct financial records. - The warehouse gap is fatal to the government's narrative on the food-procurement side: no search, no forensic accounting of actual food purchases against claimed meal counts, no expert on meal-cost benchmarks. Defense should obtain expert testimony on what $47M in SFSP/CACFP claims should cost in food and whether the purchased food quantities, even accepting the government's own records, are inconsistent with the claimed meal counts. - For Abdiaziz Farah specifically, the $4.2M in real estate in 6 months needs an innocent explanation grounded in business purpose. Lakefront lots with a $2.4M construction contract is speculative real estate investment, not consumption fraud. If Farah was operating a legitimate food distribution business receiving millions in program reimbursements and chose to invest in real estate, that is not inherently fraudulent — the government must prove the underlying claims were false, not just that money was spent lavishly.

Witnesses

Pauline Roase

FBI forensic accountant who reviewed bank records and prepared summary charts of financial flows for the charged defendants and related entities; she was the primary financial tracing witness for the Empire/Bushra network.

IRS/Forensic Government

Direct Examination

Roase's direct examination concluded in a prior volume. This volume contains only her continued cross-examination and redirect.

Cross-Examination

Schleicher's cross was effective and methodically dismantled several government characterizations. He established that Said Farah and Abdi Aftin were not sponsors and submitted no claims; that Bushra Wholesalers was not a shell company (it had employees, 1099s, a warehouse, actual food suppliers including Manmabuyu, Upper Lake Foods, and Afro Produce, plus formal credit agreements); and that bank records alone cannot show how money was used — they show only where it went. He also exposed that law enforcement never searched the Bushra warehouse in a food fraud investigation, which Roase acknowledged was true ('didn't need to').

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Said Farah did not make claims to MDE — no emails to Partners in Nutrition or Feeding Our Future submitting claims. Said Farah and Abdi Aftin were neither sponsors nor site operators. — Undercuts the government's repeated shorthand that 'defendants made claims.' Directly relevant to the fraud and conspiracy elements as applied to Farah/Aftin. [p. 5487-5489]

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Roase conceded Bushra Wholesalers 'would not be categorized as a shell company' — it had employees, a warehouse, and acknowledged food distribution. — Removes one of the government's most inflammatory characterizations. Opens door for defense to argue Bushra was a legitimate food supplier that happened to move money in ways the government now scrutinizes. [p. 5492-5493]

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Roase acknowledged that bank records show 'exactly what they show' — where money went — but not how it was used. She admitted she had not examined Bushra's tax records, had not calculated EBITDA or applied GAAP, and had not reviewed Manmabuyu invoices as a potential food supplier to Bushra. — Fundamental limitation of the government's forensic accounting: it is a flow-of-funds narrative, not a complete accounting of the business. An incoming defense expert could exploit this. [p. 5493-5500]

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D5-34 — invoices from Manmabuyu LLC to Bushra Wholesalers for food from Feb–June 2021 — were shown to Roase. She acknowledged these are what they appear to be (food invoices to Bushra) though had previously testified Manmabuyu 'did not supply food.' Government never seized these because they never searched the warehouse. — Direct impeachment of Roase's testimony. A real food supplier the government chose to ignore. The government's failure to search the warehouse is indefensible in a food fraud case. [p. 5508-5509]

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Defense established that pre-pandemic wire transfers from Said Farah's personal account (2018–2019) were common — family support, capital loans, goods, and a home purchase — all well before the program period. — Context for wire transfer activity: Farah had a pre-existing pattern of legitimate wires that predates any alleged fraud. [p. 5506-5509]

Vulnerabilities Roase is vulnerable on methodology: she repeatedly admitted bank records cannot show how money was used, yet drew inferences about illegitimacy throughout. She never searched the Bushra warehouse, never reviewed Bushra's tax returns, never calculated EBITDA or applied GAAP, and never reviewed key supplier invoices (Manmabuyu). Her 'shell company' characterization was dismantled on cross. Her testimony about Diis Transportation on redirect (no food purchases) is not independently harmful if defense can show Diis was a legitimate logistics company that happened to also receive food program money. The redirect's China wire evidence connects Mohamed Ismail and Abdiaziz Farah, not Said Farah directly — this distinction matters for defendants charged more peripherally. Her refusal to admit she 'glanced' at bank records rather than doing a thorough accounting analysis is a credibility tell.

For Defense Counsel The warehouse-search gap is a major theme: how can any government witness credibly say there was no food when they never looked? If Manmabuyu invoices are authentic (and Roase never denied they were), the government has suppressed or ignored evidence of legitimate food procurement. An incoming defense team should subpoena Manmabuyu, Upper Lake Foods, and Afro Produce records directly to build a counter-narrative. A forensic accounting expert should be retained to perform a complete GAAP analysis of Bushra's profitability — the government never did one. The informal credit agreement angle (vendors extending credit without written contracts) should be pursued through Somali community business witnesses.

Lacra Blackwell

FBI forensic accountant (Minneapolis division), law school graduate and former Romanian National Police officer, Quantico-trained; assigned to trace asset purchases made with funds derived from the Federal Child Nutrition Program.

IRS/Forensic Government

Direct Examination

Blackwell testified for the entire afternoon, presenting a methodical defendant-by-defendant asset-tracing narrative. Using demonstrative charts (N-series) that will not go to the jury room, she connected child nutrition reimbursements from Feeding Our Future and Partners in Nutrition — flowing through ThinkTechAct Foundation, Empire Cuisine & Market, and Empire Enterprises — to specific luxury purchases: Abdiaziz Farah purchased $4.2M+ in real estate and four vehicles totaling $300K+ in about six months in 2021; Mohamed Ismail paid off his Savage, MN mortgage with program funds; Mahad Ibrahim built a $684K Ohio home; Abdimajid Nur bought vehicles, traveled to the Maldives, paid for 'Do My Homework LLC' ($12K+), and sent $30K to Dubai jewelry. Total traced by Blackwell: approximately $8.2 million, over 97% allegedly from child nutrition funds.

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Abdiaziz Farah purchased four vehicles in four months totaling over $300,000 in 2021 (2021 Porsche Macan, 2021 GMC Sierra, 2022 Tesla Model Y, 2021 Nissan Murano) — all traced to Partners in Nutrition and/or Feeding Our Future reimbursement payments deposited into Empire Cuisine & Market. — Directly supports money laundering counts 33, 37 and others. The velocity of purchasing creates a powerful optics problem for the defense regardless of legal technicalities. [p. 5535-5560]

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Abdiaziz Farah purchased real estate in 6 months totaling over $4.2 million: (1) 15418 Hampshire Lane, Savage, MN ($575K wire from Empire Enterprises — Count 23); (2) 438 Stonewood Lane, Burnsville, MN ($334K — Count 42); (3) Two lakefront lots, Prior Lake, MN ($1.04M — Count 32) with a $2.4M construction contract; (4) Two Kentucky commercial properties (approx. $1M total — Counts related to BBI LLC). Construction payments to Johnson-Reiland totaling $1.5M also traced (Counts 22, 26, 39). — The scope of real estate acquisition in six months, funded from a single flow through Empire entities, is the government's single strongest narrative device. The construction plans for a $2.4M custom home on lakefront lots will be devastating to the defense absent a compelling innocent explanation. [p. 5560-5585]

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Mahad Ibrahim was a signatory on the ThinkTechAct Foundation account (U.S. Bank ending in 3379) — the primary clearinghouse through which approximately $6.9M in FOF and PIN funds flowed before reaching Empire entities. He also used Bushra Wholesalers (Said Farah/Aftin entity) money to pay $189K to MIB Holdings LLC (his own company) on July 6, 2021. — Connects all three defendant groups (Farah/Ismail/Nur, Ibrahim, Said Farah/Aftin) through ThinkTechAct as a common nexus. This is the architecture of the conspiracy as the government sees it. [p. 5586-5594]

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Abdimajid Nur paid over $12,000 to 'Pay Me To Do Your Homework LLC' for his spring 2022 courses (email: 'I have assignments due tonight'), traveled to the Maldives (Overwater Villa with Private Pool, Radisson Blu, seaplane transfer), sent $30K to Farhia Jewelery LLC Dubai, and purchased Timberwolves flex tickets — all traced to Federal Child Nutrition funds. — The 'Do My Homework' evidence is the most inflammatory item in the volume: the visual image of a man paying to cheat on school assignments with children's food money will lodge deeply with jurors. Mr. Sapone preserved a 403 objection but the court allowed it in. [p. 5636-5661]

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Tracing methodology: Blackwell uses 'first-in, first-out' (FIFO), a method she learned at Quantico. When pressed by Mr. Goetz on fungibility, she conceded that when a pool of commingled funds exceeds the payment at issue, 'you just show all of the sources' — acknowledging she cannot isolate which dollar paid for which asset when the account has multiple sources. — This is the critical cross-examination vulnerability. Blackwell admitted on voir dire that (1) her methodology is specialized training, (2) when funds are commingled, she shows all sources, and (3) money is fungible. This is the basis for the defense's strongest argument that FIFO attribution is not proof that child nutrition funds specifically purchased any asset — only that such funds were in the account. [p. 5621-5629]

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The court overruled the Rule 702 undisclosed expert challenge, ruling that Blackwell is a summary lay witness using FIFO arithmetic, not an expert, citing United States v. Blakstad (2023 WL 2668477, 2d Cir.) and Lebedev (932 F.3d 40, 2d Cir. 2019). Defense was given a standing objection. — Ruling is preserved for appeal. The Second Circuit cases cited are persuasive, not binding in the Eighth Circuit. Defense counsel should confirm whether Eighth Circuit precedent on 701/702 hybrid financial witnesses is more favorable to defense. [p. 5541-5554, 5622-5630]

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Regarding the Afrique Event Center (1701 American Boulevard East, Bloomington), approximately $1.9 million in program funds allegedly went toward the remodel, with $732K in project expenses traced back to child nutrition funds — all involving Mukhtar Shariff's entities (A&E Logistics, Afrique Hospitality Group). Five trucks purchased by A&E Logistics ($278K) also traced to child nutrition funds, with Boyer Trucks bills of sale shipped to Mohamed Ismail's home address. — Creates direct nexus between Mukhtar Shariff's business activities and child nutrition funds. The use of a food-program defendant's home address for commercial truck deliveries suggests coordination at the operational level. [p. 5606-5635]

Cross-Examination

Cross-examination of Blackwell had not yet begun at the close of this volume. She was ordered to return Tuesday, May 28, 2024.

Vulnerabilities Blackwell is the government's most polished financial witness but has several significant vulnerabilities Defense counsel should exploit on cross. (1) The FIFO methodology she admitted to on voir dire requires her to 'show all sources' when funds are commingled — meaning she cannot actually prove that food program dollars specifically purchased any asset, only that such dollars were in the account. Defense should demand, on cross, her account-by-account analysis: what other sources were in the Empire accounts? What non-program revenue did Empire or ThinkTechAct receive? (2) She admitted her methodology is based on specialized training — undercutting the government's claim she's just 'doing math.' (3) The demonstrative charts (N-series) will not be in the jury room, meaning jurors must reconstruct the money-flow arguments from memory. (4) She has not reviewed whether any of the real estate purchases involved legitimate business investment intent or generated revenue. (5) The $8.2M figure is a subset of $41M — what happened to the other $32.8M? Defense can argue the program was mostly legitimate and the fraud fraction, if any, is narrow. (6) Partners in Nutrition (Kara Lomen's organization) is identified throughout as a primary payment source — yet she was never charged, never interviewed, and her internal decisions about approving claims are not accounted for. This is a major gap in the causation chain.

For Defense Counsel defense counsel's cross-examination of Blackwell should focus on four themes: (1) FIFO fungibility — use her own voir dire admissions to show she cannot isolate program dollars from any legitimate revenue in commingled accounts; obtain her worksheets and account analyses showing all deposits; (2) Missing sources — what revenue did Empire Cuisine & Market and ThinkTechAct have from non-program sources? Commercial catering, consulting, legitimate food sales, investor capital? If any non-program funds were in the accounts, the attributions collapse; (3) Partners in Nutrition as gatekeeper — every dollar traced went through PIN first; PIN's own approval and verification decisions are completely absent from Blackwell's analysis; (4) Asset nature — several 'luxury' purchases (warehouses, trucks, commercial real estate in Kentucky, A&E logistics vehicles) are business investments, not personal consumption. A defense financial expert should present an alternative tracing showing the portion of assets that are income-producing or business-related.

Key Evidence

Type	Exhibit	Description	Page	Challenge Opportunity
Financial Record	Gov. Ex. M-12	Summary chart of Diis Transportation LLC bank accounts (March 2021–January 2022): $486K deposited, sourced primarily from Empire Cuisine & Market, Bushra Wholesalers, and As-Sunnah Islamic Center. Funds used for $105K self-transfers, $70K vehicle, and $61K foreign wires — allegedly no food purchased.	[p. 5510-5513]	Roase acknowledged on cross that bank records cannot show how money was used. Diis Transportation is a transportation company — payments for transportation services are not food purchases. The government conflates non-food spending with evidence of fraud.
Document	Gov. Ex. C-367	Afrique Hospitality Group invoice submitted January 3, 2022, to Feeding Our Future for December 2021 meals at Dar Al-Farooq: $434,822.85 claimed for 3,501 meals per day 6 days/week. Accompanying roster contains fictitious names ('Serious Problem,' 'Unique Problem') — same names IRS Agent Parks identified appearing on multiple site rosters.	[p. 5521-5523]	The roster was submitted to Feeding Our Future, not to MDE. The question is who created the roster — the site operator or someone at FOF? The government has not established chain of custody for this document to the defendants on trial. For SFSP open sites, rosters were not required at all — the question is whether Dar Al-Farooq was an open or closed enrolled site.
Financial Record	Demonstratives N-104a, N-104b, N-105, N-107 through N-115, N-131 through N-138	Series of Blackwell demonstrative summary charts showing FIFO money flows from FOF and Partners in Nutrition through ThinkTechAct Foundation and Empire entities to specific asset purchases. NOT admitted into evidence; will not go to jury room. Underlie the money laundering counts.	[p. 5529-5662]	The FIFO methodology produces attribution without causation. Defense should argue in closing that because accounts had multiple sources, Blackwell's charts show correlation not causation. The charts also exclude any analysis of non-program revenue in the traced accounts.
Document	Gov. Ex. J-1 through J-29; J-50 through J-57; J-83 through J-89; J-93, J-94; J-132 through J-138; J-126, J-127	Property records, deeds, photos, and closing documents for Abdiaziz Farah's real estate purchases: Ohio home for Mahad Ibrahim; Prior Lake lakefront lots; Hampshire Lane Savage MN home; Burnsville townhouse; two Kentucky commercial properties; As-Sunnah Islamic Center property. All admitted without objection.	[p. 5560-5585]	No evidence the real estate was purchased with the intent to defraud, as opposed to investment purposes. Kentucky commercial real estate in particular appears to be income-producing. The As-Sunnah property purchase serves the community. Defense should retain real estate expert to analyze business case for each acquisition.
Document	Gov. Ex. G-333, G-334	Emails from/to Abdimajid Nur's Gmail account showing payment of $6,316 to 'Pay Me To Do Your Homework LLC' for 'Abdi Nur, 2022 spring courses' with the message 'I have assignments due tonight.' Total payments to the company exceed $12K, sourced to child nutrition funds.	[p. 5650-5655]	This evidence is nearly irrelevant to whether food fraud occurred. The prejudice substantially outweighs any probative value on the charged counts. A 403 objection was preserved by Mr. Sapone. The connection to food fraud is attenuated and inferential. The government is using this to inflame the jury, not to prove a material element of any count.
Document	Gov. Ex. G-308 through G-314, G-313-1 through G-313-5	Email records and videos from Abdimajid Nur's Google Drive concerning his July 2021 trip to the Maldives (Radisson Blu Overwater Villa with Private Pool, seaplane transfer). Videos show bottle being opened at a poolside overlooking the ocean.	[p. 5656-5661]	The trip was in July 2021, during a period when Abdimajid Nur may have had legitimate personal income from other sources. The FIFO attribution again cannot isolate which dollars paid for which trip. The video is a 403 issue — its probative value on any money laundering count is minimal compared to its inflammatory impact.
Document	Def. Ex. D5-34	Invoices from Manmabuyu LLC to Bushra Wholesalers for food, February 19 through June 8, 2021. Shown to Roase on cross — she previously testified Manmabuyu 'did not supply food' to Bushra.	[p. 5508-5509]	Not yet admitted. Government will argue Manmabuyu invoices are fabricated or that the amounts are insufficient relative to the claimed meal counts. Authentication may be required.

Legal Rulings & Objections

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Motion by multiple defendants that Lacra Blackwell is an undisclosed expert witness under Rules 701/702/703/704 and Fed. R. Crim. P. 16 — OVERRULED. Court ruled FIFO money tracing is lay opinion testimony, not expert testimony, relying on United States v. Blakstad, 2023 WL 2668477 (2d Cir.) and Lebedev, 932 F.3d 40 (2d Cir. 2019). Standing objection preserved for all defendants. — This ruling is the most significant legal event in the volume. It is preserved for appeal. Defense counsel should check Eighth Circuit authority — if the Eighth Circuit has a more defense-favorable view of FIFO forensic accounting as expert methodology, this ruling may be the most valuable appellate issue from this trial day. The voir dire established on the record that (1) the methodology has a name (FIFO), (2) it was learned in specialized training at Quantico, and (3) it involves assumptions about fungibility when multiple sources exist. [p. 5541-5554, 5622-5630]

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Court sustained government's objection to Schleicher's challenge to Roase's statement that bank records showed 'no legitimate business operations' in Bushra's early months — overruled defense objection on that specific redirect answer. — Defense objected but the testimony stood. This is a lay opinion that goes beyond what a bank records reviewer should be permitted to say — another 701 issue to preserve. [p. 5517]

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Court overruled Cotter's objection (calling for legal conclusion/foundation) when Blackwell testified the 'true source of funds' used to pay off Mohamed Ismail's mortgage was Federal Child Nutrition Program funds. — The court's ruling that 'true source' is not a legal opinion but a factual tracing observation is the baseline from which defense must argue on cross and on appeal. [p. 5534]

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Court gave a limiting instruction to the jury that demonstrative N-series charts are not evidence, will not go to the jury room, and are used only for convenience. Given after a sidebar at defense request. — Helpful to defense — jurors must reconstruct the complex money-flow arguments from memory rather than examining the government's visual aids during deliberations. Defense closing argument should stress that the government's charts are not evidence. [p. 5541-5554]

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Court permitted 'Do My Homework' evidence over defense 403 objection (Sapone), noting the issue was preserved and the court would not allow a mini-trial on it. — 403 preserved for appeal. In future trials, Defense counsel should file a motion in limine specifically targeting this category of evidence as unduly prejudicial — its connection to the fraud charges is inferential at best. [p. 5630-5631]

Prior Defense Performance

Mixed — with some genuinely excellent moments from Schleicher that prior defense counsel should be credited for. Schleicher's cross of Roase was methodical and achieved important concessions: no shell company, no search of the warehouse, bank records are incomplete, informal credit agreements exist. The D5-34 (Manmabuyu invoices) impeachment was particularly effective. However, several missed opportunities stand out. (1) When Roase said on redirect 'the numbers don't lie, there was not enough food purchased' — this answer was not challenged on recross. She never explained what 'enough' means or by what standard. (2) No attorney challenged the government's continued use of Partners in Nutrition (Kara Lomen) reimbursements as evidence of fraud without any testimony about PIN's verification failures — PIN processed the majority of the money and was the direct payer, yet its role as a private gatekeeper is completely absent. (3) On the Blackwell voir dire, Goetz extracted critical admissions about FIFO fungibility that the defense can use powerfully on cross — but once the court ruled, the defense did not immediately pivot to preparing a cross strategy. (4) No attorney asked Blackwell on voir dire whether any of the traced accounts contained non-program revenue — a foundational question for the FIFO attribution that should have been asked in front of the jury. (5) The decision to make no attempt at cross-examination of Blackwell before the weekend break (even briefly) means the jury will hold an undiluted impression of the $8.2M asset narrative over Memorial Day weekend. If defense had asked even one question planting doubt about commingled sources, the jury would have had something to consider.