Washington/Mogadishu: U.S. authorities have made a major breakthrough in the high-profile COVID-19 child nutrition fraud case involving alleged losses of more than ₹2,100 crore, or about US$250 million. Abdikerm Abdelahi Eidleh, 42, one of the alleged key figures who had been on the run for nearly four years, has been arrested in Mogadishu, Somalia.
Fugitive Arrested In Somalia
According to U.S. authorities, Eidleh was indicted in September 2022 on 31 criminal counts, including wire fraud, conspiracy to commit wire fraud, federal programmes bribery, money laundering and conspiracy to commit money laundering.
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Prosecutors allege that he played a central role in misusing government funds allocated under a pandemic-era child meal reimbursement programme. The funds were meant to provide food to children during the COVID-19 period.
Investigators allege that Eidleh recruited restaurant owners and catering operators to inflate the number of meals purportedly served to children, enabling fraudulent reimbursement claims from the government.
Fake Meal Claims Under Probe
Authorities allege that the network operated through fake meal distribution sites, fabricated vendor arrangements and shell companies. Prosecutors claim that Eidleh personally received millions of dollars in bribes, kickbacks and illicit payments through the scheme.
The indictment also alleges that Eidleh operated a fraudulent meal distribution site and falsely claimed to be serving thousands of meals to children each day. Investigators say these fabricated claims allowed the accused network to obtain substantial government reimbursement funds.
The case is linked to the wider Feeding Our Future fraud investigation. Aimee Bock, described by prosecutors as a leading figure in the case, has already been convicted and sentenced to more than 40 years in prison.
79 People Charged
So far, 79 individuals have been charged in connection with the investigation. More than 60 have either been convicted or pleaded guilty. Authorities say the investigation continues to examine additional financial transactions, suspected shell companies and the movement of funds across jurisdictions.
Federal prosecutors allege that the broader fraud network used a pay-to-play model, in which operators of fake meal sites shared part of their illegal proceeds with individuals linked to the administering organisation. These payments were allegedly disguised as consulting fees and routed through shell entities.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said large-scale financial crimes often rely on shell companies, fabricated invoices, banking channels and cross-border fund transfers to exploit welfare schemes. He said forensic analysis of digital financial records, bank accounts, tax filings and beneficiary networks is essential to uncover the full money trail.
U.S. authorities are now expected to produce Eidleh before a federal court. Prosecutors are likely to rely on financial records, banking documents and the alleged money trail as legal proceedings move forward.
