Federal authorities announced Wednesday that the first individual placed on the Justice Department’s newly created “Most Wanted Fraudster” list has been arrested after surrendering to law enforcement in Minnesota.
The suspect, Said Abdullahi Ereg, is accused of participating in a scheme that allegedly defrauded a federal child nutrition program of millions of dollars during the COVID-19 pandemic.
According to the Department of Justice, Ereg surrendered to authorities in Minneapolis and was taken into custody by the FBI. Officials said he had recently been added to the government’s newly launched fraud fugitives list, which was unveiled as part of a broader effort to combat large-scale financial crimes.
Federal prosecutors allege that Ereg falsely claimed to provide meals to children through a federally funded nutrition assistance program intended to support families during the pandemic.
Instead, authorities contend that he used government funds for personal enrichment and to support what investigators described as a lavish lifestyle.
“Today’s arrest is historic — the first ever arrest of a subject on our Most Wanted Fraudsters List released last week,” FBI Director Kash Patel said in a statement.
According to court documents, Ereg operated a grocery store and deli in Minneapolis that participated in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future, a Minnesota nonprofit organization.
Federal officials allege that Ereg’s business claimed to have distributed more than 1.4 million meals to children in need and received approximately $4.2 million in federal reimbursements.
Investigators contend that many of those claims were fraudulent and that the meals were never provided as reported.
Ereg was charged in 2024 with conspiracy to commit wire fraud and money laundering. Prosecutors allege that he knowingly participated in efforts to obtain federal funds through false claims submitted to the government.
Authorities have not publicly indicated whether additional charges could be filed.
The case is part of a broader federal investigation into alleged fraud involving Feeding Our Future and organizations that received pandemic-era nutrition program funding. The investigation has resulted in numerous criminal charges against individuals accused of exploiting emergency relief programs intended to assist children and families, per ABC News.
Federal officials have described the investigation as one of the largest pandemic-related fraud cases pursued by the Justice Department.
The newly established Most Wanted Fraudster list was announced last week by Acting Attorney General Todd Blanche and senior federal officials. The initiative is intended to identify and locate individuals accused of major financial crimes who remain fugitives from justice.
The announcement came during an event in Ohio attended by Blanche, Patel and officials from several federal agencies, including the Centers for Medicare & Medicaid Services.
Authorities said the program is designed to increase public awareness of major fraud investigations and encourage tips that may assist law enforcement efforts.
The FBI did not immediately release details regarding Ereg’s initial court appearance or whether he has retained legal counsel.
Federal prosecutors are expected to continue pursuing the case in U.S. District Court.
If convicted, Ereg could face significant prison time and financial penalties under federal fraud and money laundering statutes.
