Two women charged in a broad federal fraud investigation connected to social-service and childcare programs in Minnesota have pleaded guilty, federal prosecutors said Thursday.
Guilty pleas in multi-defendant probe
Fahima Egeh Mahamud, 50, of Minneapolis, and Jillaine Mertens, 42, of Hamel each entered guilty pleas as part of agreements with prosecutors. Sentencing dates for both defendants have not been set.
Federal authorities previously announced criminal cases involving a total of 15 defendants, alleging a scheme that exploited federal and state programs intended to help vulnerable Minnesotans. Officials said the investigation began drawing public attention in May when top federal officials traveled to Minnesota to unveil the charges.
Alleged losses and programs affected
Prosecutors say Mertens collected more than $400,000 in fraudulent claims across three childcare centers located in Ramsey, Rochester and Kasson. Mahamud is accused of taking approximately $5.5 million in taxpayer funds through her daycare, Future Leaders.
The broader case alleges defendants sought improper payments from multiple programs, including the now-defunct Housing Stabilization Services program, created to help connect people experiencing homelessness with housing, and the Early Intensive Developmental Behavioral Intervention (EIDBI) program for children with autism.
| Defendant | Age | Location | Alleged take |
|---|---|---|---|
| Fahima Egeh Mahamud | 50 | Minneapolis | $5.5 million |
| Jillaine Mertens | 42 | Hamel | $400,000+ |
Implications for oversight and services
The cases underscore federal prosecutors’ contention that some providers improperly accessed funds meant for vulnerable populations. The alleged fraud reaches programs aimed at housing stability and specialized services for children, raising questions about program safeguards and auditing.
Investigations involving multiple defendants and large sums typically involve prolonged litigation and follow-up audits. Sentencing for Mahamud and Mertens will occur at later dates as the cases proceed through the federal courts.
- 15 defendants charged in the broader federal investigation.
- $5.5 million alleged taken by Mahamud through a Minneapolis daycare.
- $400,000+ alleged collected by Mertens across three centers.
This is a developing story; additional reporting may provide more details as the federal cases move toward sentencing and potentially further guilty pleas from other defendants.
