Minneapolis’ $250M Fraud Scandal Raises Uncomfortable Questions for City Hall

By Michael Phillips | WIBayNews

As federal prosecutors continue to unwind one of the largest pandemic fraud schemes in U.S. history, the fallout from Minnesota’s Feeding Our Future case has left Minneapolis City Hall facing renewed scrutiny—not for proven wrongdoing by elected officials, but for a troubling web of proximity, appointments, and unanswered questions that remain unresolved years later.

At the center of that scrutiny is Jacob Frey, the Democratic mayor of Minneapolis, whose administration intersected repeatedly—directly and indirectly—with individuals later charged in the $250 million federal child nutrition fraud.

The Mayor’s Wife and an Abrupt Exit

Mayor Frey’s wife, Sarah Clarke, worked as Director of Government Affairs at Hylden Advocacy & Law from roughly 2016 until January 2022.

Hylden Advocacy & Law was led by attorney Nancy Hylden, who represented Feeding Our Future founder Aimee Bock during court proceedings connected to the sprawling federal investigation. Feeding Our Future has since become synonymous with massive COVID-era fraud, with dozens of defendants indicted or convicted for allegedly siphoning federal funds intended to feed children.

There is no public evidence that Clarke personally represented Feeding Our Future or engaged in wrongdoing. Still, her departure from Hylden’s firm in January 2022—coinciding with FBI raids on Feeding Our Future sites and Bock’s home—was described by multiple outlets as abrupt and unexplained. No formal clarification has been offered, leaving lingering public questions rather than legal accusations.

Clarke later moved into corporate counsel work in the energy sector, distancing herself professionally from Minnesota’s political and lobbying world.

Lobbying, Museums, and Public Funding

Hylden Advocacy & Law also appears in lobbying disclosures tied to a proposed Somali museum founded by Osman Ali, an individual later linked to separate fraud allegations. The museum project reportedly received approximately $4.5 million in public funding months after Ali pleaded guilty in a different fraud case.

While public records do not establish illegal conduct by Hylden or Clarke in connection with the museum funding, the overlap between lobbying efforts, state dollars, and subsequent criminal cases has fueled criticism about oversight and political gatekeeping in Minnesota.

Campaign Donations That Aged Poorly

Campaign finance records show that at least eight individuals later named in Feeding Our Future indictments or warrants donated the maximum allowable $1,000 to Mayor Frey’s 2021 reelection campaign—often during the same period in mid-2021.

Frey has stated that these donations were returned or refunded once indictments became public, and prosecutors have not alleged that Frey had advance knowledge of the fraud. Still, the pattern underscores how easily illicit money can flow into political campaigns before watchdogs catch up.

Appointees Who Ended Up Indicted

Perhaps most damaging to public confidence is the number of Frey appointees later charged in the scheme:

• Abdi Nur Salah — Former senior policy aide to Frey, charged with wire fraud and money laundering; later pleaded guilty.
• Sharmarke Issa — Appointed by Frey to chair the Minneapolis Public Housing Authority; charged with fraud-related counts involving property purchases.
• Abdikadir Ainanshe Mohamud — Appointed to Frey’s Minneapolis Community Safety Workgroup; charged with multiple fraud offenses.

All three resigned or were removed by early 2022. Frey has consistently said he was unaware of any criminal activity at the time of their appointments and has not been accused of wrongdoing himself.

No Charges—But a Trust Problem

To be clear: Neither Mayor Frey nor Sarah Clarke has been charged, investigated, or accused of participating in fraud. The connections outlined here are associative, not evidentiary.

Yet for voters—particularly those concerned about government accountability—the Feeding Our Future scandal illustrates a deeper problem: a political culture in which personal networks, lobbying firms, and public appointments operate with limited scrutiny until federal prosecutors intervene.

For Wisconsin readers watching similar federal grant programs, the lesson is less about Minneapolis politics and more about governance. Massive emergency spending during COVID exposed how quickly public money can be exploited—and how weak oversight can undermine trust long after the indictments are filed.

The Broader Question

The Feeding Our Future case has produced convictions and accountability for individual fraudsters. What it has not yet produced is a convincing explanation for how so many politically connected actors slipped through the system unchecked.

That lingering gap—between legal innocence and public confidence—is where the real damage to institutions occurs. And it’s a warning worth heeding well beyond Minneapolis.

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