Plea Agreement — United States v. Asad Mohamed Abshir (Feeding Our Future) (Dkt. 738, D. Minn.)

Summary

In this plea agreement filed 07/21/25 in the District of Minnesota (Criminal No. 22-223(11)), Asad Mohamed Abshir agrees to plead guilty to Count 61 of the Indictment, money laundering in violation of 18 U.S.C. § 1957. The factual basis says co-defendant Abdinasir Abshir, the defendant's brother, ran the Stigma-Free Mankato site under the sponsorship of Feeding Our Future, and that Asad Abshir, while not taking part directly in the billing scheme, acknowledges deliberate and willful blindness about it. It states Asad Abshir received more than $750,000 in Federal Child Nutrition Program funds into the Santana LLC account in 2021 and made a $77,353 payment on December 30, 2021 toward the purchase of a truck. Asad Abshir agrees to owe restitution in the amount of $750,000.

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CASE 0:22-cr-00223-NEB-DTS Doc. 738 Filed 07/21/25 Page1of12

7 SCANNED
UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA JUL 22 2025
Criminal No. 22-223(11) (NEB/DTS) U.S. DISTRICT COURT MPLS

UNITED STATES OF AMERICA,

Plaintiff, PLEA AGREEMENT AND
SENTENCING STIPULATIONS

v.
ASAD MOHAMED ABSHIR,
Defendant.

The United States of America and the defendant Asad Mohamed Abshir agree
to resolve this case on the terms and conditions that follow. This plea agreement binds
“only the defendant and the United States Attorney’s Office for the District of
Minnesota. This agreement docs not bind any other United States Attorney’s Office
or any other federal or state agency.

1. Charges. The defendant agrees to plead guilty to Count 61 of the
Indictment, which charges the defendant with money laundering, in violation of Title
18, United States Code, Section 1957. The defendant fully understands the nature
and elements of the crimes with which he has been charged. At the time of
sentencing, the United States agrees to move to dismiss the remaining charges
against him in the Indictment.

2. Factual Basis. The defendant is pleading guilty because he is in fact

guilty of Count 61 of the Indictment. In pleading guilty, the defendant admits the
following facts and that those facts establish his guilt beyond a reasonable doubt and

constitute relevant conduct pursuant to the United States Sentencing Guidelines:
CASE 0:22-cr-00223-NEB-DTS Doc. 738 Filed 07/21/25 Page 2 of 12

In October 2020, defendant’s brother, co-defendant Abdinasir Abshir, opened
up a purported Federal Child Nutrition Program site in Mankato, Minnesota, a mid-
sized city in Southwestern Minnesota, which was run through a non-profit entity,
Stigma-Free International (the “Stigma-Free Mankato site”) under the sponsorship
of Feeding Our Future. The defendant assisted his brother with opening the site and
operating the site. Around the same time he opened the site, Abdinasir Abshir
defendant created a company called Horseed Management LLC, which purported to
be a food vendor for the Stigma-Free Mankato site, and named his brother, the
defendant, as a partner in Horseed. Abinasar Ase managed the finances of Horseed,
including the fraudulent billing, payments to venders, and distribution of funds.
During the one-year period from November 2020 to November 2021, Abdinasir
Abshir and his co-conspirators claimed to have served more than 1.6 million meals at
the Stigma-Free Mankato site. In support of these claims, Abdinasir Abshir and his
co-conspirators prepared and submitted fraudulent meal count sheets, attendance
rosters, and invoices, which were false or otherwise fraudulently inflated.

While he did not participate directly in his brother’s fraudulent billing scheme,
the defendant knew that the amount of money being generated was unrealistic for a
running a food distribution center for hungry children, and he acknowledges his
deliberate and willful blindness concerning his brother’s fraudulent scheme and the
source of funds from which he was the beneficiary. From the proceeds of this fraud,
Abdinasir Abshir paid his brother, defendant Asad Abshir, approximately $750,000

during 2021. On or about January 11, 2021, the defendant registered Santana LLC
CASE 0:22-cr-00223-NEB-DTS Doc. 738 Filed 07/21/25 Page 3of12

with the Minnesota Secretary of State. The defendant used Santana LLC as a shell
company to-receive payments from his brother. In 2021, the defendant received more
than $750,000 in Federal Child Nutrition Program funds into the Santana LLC bank
account. He used this money to, among other things, pay for personal spending,
international travel, and to purchase a 2022 GMC Sierra 1500 pickup truck for
approximately $78,000.

As alleged in Count 61 of the Indictment, on December 30, 2021, the defendant
made a payment in the amount of $77,353 from a bank account he controlled toward
the purchase of a 2022 GMC Sierra 1500 Denali truck. As alleged in Count 61, the
defendant admits that with his $77,353 payment on December 30, 2021, he knowingly
engaged in a monetary transaction through a financial institution affecting interstate
commerce in criminally derived property of value greater than $10,000, and that such
property—as the defendant knew through his deliberate and willful ignorance—was
derived from specific unlawful activity, namely, the wire fraud scheme by others to
defraud the Federal Child Nutrition Program.

3. Waiver of Pretrial Motions. The defendant understands and agrees

that he has certain rights to file pre-trial motions in this case. As part of the plea
agreement, and based upon concessions of the United States within this plea
agreement, the defendant knowingly, willingly, and voluntarily gives up the right to
file any pre-trial motions in this case. The defendant agrees that, by pleading guilty,

he is withdrawing any motions previously filed.
CASE 0:22-cr-00223-NEB-DTS Doc. 738 Filed 07/21/25 Page 4of12

4. Waiver of Constitutional Trial Rights. The defendant understands

that he has the right to go to trial. At trial, the defendant would be presumed
innocent, have the right to trial by jury or, with the consent of the United States and
of the Court, to trial by the Court, the right to the assistance of counsel, the right to
confront and cross-examine adverse witnesses, the right to subpoena witnesses to
testify for the defense, the right to testify and present evidence, and the right to be
protected from compelled self-incrimination. The defendant understands that he has
the right to an attorney at every stage of these proceedings and, if necessary, one will
be appointed to represent him. The defendant understands that he has the right to
persist in a plea of not guilty and, if he does so, he would have the right to a public
and speedy trial. By pleading guilty, the defendant knowingly, willingly, and
voluntarily waives each of these trial rights, except the right to counsel. The
defendant understands that a guilty plea is a complete and final admission of guilt
and, if the Court accepts the guilty plea, the Court will adjudge the defendant guilty
without a trial.

5. Additional Consequences. The defendant understands that as a

result of his conviction, he could experience additional consequences, such as the loss
of the right to carry firearms, the right to vote, and the right to hold public office.

6. Statutory Penalties. The parties agree that money laundering, as

charged in Count 61 of the Indictment, carries statutory penalties of:
a. a maximum term of imprisonment of 10 years in prison;

b. a supervised release term of up to three years;
CASE 0:22-cr-00223-NEB-DTS Doc. 738 Filed 07/21/25 Page5of12

C. a fine of up to $250,000, or twice the criminally deprived property,
whichever is greater; and

d. a mandatory special assessment of $100 under 18 U.S.C. §
3013(a)(2)(A).

7. Revocation of Supervised Release. The defendant understands that

if he were to violate any supervised release condition while on supervised release, the
Court could revoke his supervised release, and the defendant could be sentenced to
an additional term of imprisonment up to the statutory maximum set forth in 18
U.S.C. § 3583(e)(3). See U.S.S.G. §§ 7B1.4, 7B1.5. The defendant also understands
that as part of any revocation, the Court may include a requirement that he be placed
on an additional term of supervised release after imprisonment, as set forth in 18
U.S.C. § 3583(h).

8. Guidelines Calculations. The parties acknowledge that the defendant

will be sentenced in accordance with 18 U.S.C. § 3551, et seq. Nothing in this plea

agreement should be construed to limit the parties from presenting any and all

relevant evidence to the Court at sentencing. The parties also acknowledge that the

Court will consider the United States Sentencing Guidelines in determining the
appropriate sentence and stipulate to the following guideline calculations:

a. Base Offense Level. The parties agree that the base offense level

for money laundering is 22 because the amount laundered was

more than $550,000 but not more than $1.5 million. U.S.S.G. §§
2S1.1(a)(2) and 2B1.1(b)(1)(H).

b. Specific Offense Characteristics. The parties agree that the
offense level should be increased by 1 level because the
defendant’s charge of conviction is 18 U.S.C. § 1957. The parties
agree that no other specific offense adjustments apply.
CASE 0:22-cr-00223-NEB-DTS Doc. 738 Filed 07/21/25 Page 6of12

c. Chapter 3 Adjustments. The parties agree that the defendant’s
offense level should be reduced 4 levels, pursuant to U.S.S.G. §
3B1.2(a), because he was a minimal participant in any criminal
activity. The parties otherwise agree that, other than credit for
acceptance of responsibility, no Chapter 3 adjustments apply.

d. Acceptance of Responsibility. The government agrees to
recommend that the defendant receive a 2-level reduction for
acceptance of responsibility pursuant to U.S.S.G. § 3E1.1(a).
Whether this reduction will be imposed shall be determined by
the Court in its discretion. However, the defendant understands
and agrees that the government’s recommendations are
conditioned upon the following: (1) the defendant testifies
truthfully during the change of plea and sentencing hearings; (2)
the defendant provides full, complete and truthful information to
the United States Probation Office in the pre-sentence
investigation; and (3) the defendant engages in no conduct
inconsistent with acceptance of responsibility before the time of
sentencing, including frivolously denying facts in the Presentence
Report. Nothing in this agreement limits the right of the
government, pursuant to U.S.S.G. § 3E1.1 and/or § 3C1.1 to seek
denial of a reduction for acceptance of responsibility or an
enhancement for obstruction of justice should the defendant
engage in any conduct inconsistent with acceptance of
responsibility, including moving to withdraw his guilty plea after
it is entered.

e. Criminal History Category. The parties believe that, at the time
of sentencing, the defendant will fall into Criminal History
Category I. U.S.S.G. § 4A1.1. This does not constitute a
stipulation, but a belief based on an assessment of the
information currently known. The defendant’s actual criminal
history and related status will be determined by the Court based
on the information presented in the Presentence Report and by
the parties at the time of sentencing. The defendant understands
that if the presentence investigation reveals any prior adult or
juvenile sentence which should be included within his criminal
history under the U.S. Sentencing Guidelines, the defendant will
be sentenced based on his true criminal history category, and he
will not be permitted to withdraw from this Plea Agreement.
U.S.S.G. § 4A1.1.

f. Zero-Point Offender Adjustment. Because the defendant has zero
criminal-history points and no disqualifying conduct, the parties
CASE 0:22-cr-00223-NEB-DTS Doc. 738 Filed 07/21/25 Page 7 of 12

agree the defendant qualifies for a 2-level adjustment under
U.S.S.G. § 4C1.1.

g. Guidelines Range. If the adjusted offense level is 15 (22 +1-—4-
2 — 2), and the criminal history category is I, the Sentencing
Guidelines range is 18-24 months of imprisonment.

h. Fine Range. If the adjusted offense level is 15, the Sentencing
Guidelines fine range is $7,500 to $75,000. U.S.S.G. § 5H1.2(c)(3).

1. Supervised Release. The Sentencing Guidelines call for a term of
supervised release of not more than three years for Count 58.

U.S.S.G. § 5D1.2(a)(2).

9. Discretion of the Court. The foregoing stipulations are binding on

the parties, but do not bind the Court. The parties understand that the Sentencing
Guidelines are advisory and their application is a matter that falls solely within the
Court’s discretion. The Court may make its own determination regarding the
applicable guideline factors and the applicable criminal history category. The Court
may also depart from the applicable Guidelines. If the Court determines that the
applicable guideline calculations or the defendant’s criminal history category are
different from that stated above, such a determination shall not provide a basis for
the parties to withdraw from this agreement, and the defendant will be sentenced

pursuant to the Court’s determinations.

10. Agreements as to Sentencing Recommendation. The parties are

free to recommend whatever sentence they deem appropriate. The parties reserve the
right to make a motion for departures from the applicable Guidelines range pursuant
to 18 U.S.C. § 3553(a), to oppose any such motion made by the opposing party, and to

argue for a sentence outside the applicable Guidelines range. If the Court does not
CASE 0:22-cr-00223-NEB-DTS Doc. 738 Filed 07/21/25 Page 8 of12

accept the sentencing recommendation of the parties, the defendant will have no right
to withdraw his guilty plea.

11. Special Assessment. The Sentencing Guidelines require payment of a

special assessment in the amount of $100 for each felony count of which the defendant
is convicted. U.S.S.G. § 5E1.3. The defendant agrees that the special assessment is
due and payable at the time of sentencing.

12. Restitution Agreement. The defendant understands and agrees that

the Mandatory Victim Restitution Act, 18 U.S.C. § 3663A, applies and that the Court
is required to order the defendant to make restitution to the victims of his crime. The
defendant understands and agrees the Court may order the defendant to make
restitution to any victim of the scheme regardless of whether the victim was named
in the Indictment. The defendant agrees that he owes restitution in the amount of
$750,000.

13. Disclosure of Assets. The defendant will fully and completely disclose

to the United States Attorney’s Office the existence and location of any assets in
which the Defendant has any right, title, or interest, or over which the defendant
exercises control, directly or indirectly, including those assets held by a spouse,
nominee or other third party, or any business owned or controlled by the defendant.
The defendant agrees to assist the United States in identifying, locating, returning,
and transferring assets for use in payment of fines and/or forfeiture ordered by the
Court. The Defendant agrees to complete a financial statement within two weeks of

the entry of his guilty plea. The defendant further agrees to execute any releases that
CASE 0:22-cr-00223-NEB-DTS Doc. 738 Filed 07/21/25 Page 9of12

may be necessary for the United States to obtain information concerning the
defendant’s assets and expressly authorizes the United States to obtain a credit
report on the defendant to evaluate his ability to satisfy financial obligations imposed
by the Court. If requested by the United States, the defendant agrees to submit to
one or more asset interviews or depositions under oath.

14. Forfeiture. The Defendant agrees to forfeit to the United States,
pursuant to 18 U.S.C. § 982(a)(1), any property, real or personal, involved in a
transaction or attempted transaction in violation of Title 18, United States Code,
Section 1957, and any property traceable to such property, as charged in Count 61 of
the Indictment. The Defendant also agrees to forfeit to the United States, any
property, real or personal, involved in the Conspiracy to Commit Money Laundering
alleged in Count 41 of the Indictment and all property traceable to such property. The
Defendant admits that the property subject to forfeiture includes, but is not limited
to, the following:

a. $424,762.51 seized from Think Mutual Bank account No.
XXXxxxxxx0146 held in the name of Santana LLC; and

b. a 2022 GMC _ Sierra 1500 Ltd. Denali, VIN:
3G'TU9SFELING 14044, registered to Santana LLC (together, “the

Property”).
The Defendant admits that the Property is subject to forfeiture because it was
involved in the Conspiracy to Commit Money Laundering or is traceable to such
property. The defendant further admits that the 2022 GMC Sierra 1500 Ltd. Denali

vehicle was involved in the violation if 18 U.S.C. § 1957 charged in Count 61 or is

traceable to property involved in that violation.

9
The defendant agrees that the United States may, at its option, forfeit the
Property through civil, criminal or administrative proceedings, waives any deadline
or statute of limitations for the initiation of any such proceedings, and abandons any
interest he may have in the property. The defendant waives all statutory and
constitutional defenses to the forfeiture and waives any right to contest or challenge
(including direct appeal, habeas corpus, or any other means), directly or through any
entity she owns or controls, such forfeiture on any grounds.

The defendant agrees that the forfeiture section of this plea agreement binds
any entity he owns or controls, and he agrees to execute any further documents
necessary to forfeit the Property as set forth above, including any waiver of ownership
or consent to administrative forfeiture forms.

15. Waivers of Appeal and Collateral Attack. The parties hereby waive

the right to appeal any non-jurisdictional issues. This appeal waiver includes, but is
not limited to: the defendant’s waiver of the right to appeal guilt or innocence, any
issues relating to the negotiation, taking or acceptance of the guilty plea, the sentence
imposed or any issues that relate to the calculation of the Guidelines range, the
supervised-release term and conditions imposed, any restitution obligations, and the
constitutionality of the statutes to which the defendant is pleading guilty. The
parties agree, however, that excluded from this waiver is an appeal by defendant of
the substantive reasonableness of a term of imprisonment above the top of the
Guidelines range, and an appeal by the government of the substantive

reasonableness of a term of imprisonment below the bottom of the Guidelines range.

10
CASE 0:22-cr-00223-NEB-DTS Doc. 738 Filed 07/21/25 Page11of12

The defendant also waives the right to collaterally attack his conviction and
sentence under 28 U.S.C. § 2255 except based upon a claim of ineffective assistance
of counsel. This collateral-review waiver does not operate to waive a collateral
challenge under 28 U.S.C. § 2255 based on new legal principles enunciated in
Supreme Court case law decided after the date of this Plea Agreement that are both
substantive and have retroactive effect. For purposes of this provision, legal
principles that are substantive and retroactive are those that narrow the reach of the
offense of conviction and render the defendant’s conduct non-criminal or that render
the sentence imposed illegal.

The defendant has discussed these rights with the defendant’s attorney. The
defendant understands the rights being waived, and the defendant waives these
rights knowingly, intelligently, and voluntarily.

16. FOIA Requests. The defendant waives all rights to obtain, directly or

through others, information about the investigation and prosecution of this case
under the Freedom of Information Act and the Privacy Act of 1974, 5 U.S.C. §§ 552,

552A.

17. Complete Agreement. This, along with any agreement signed by the

parties before entry of plea, is the entire agreement and understanding between the
United States and the defendant. By signing this plea agreement, the defendant
acknowledges: (a) that the defendant has read the entire agreement and has reviewed
every part of it with the defendant’s counsel; (b) that the defendant fully understands

this plea agreement; (c) that no promises, agreements, understandings, or conditions

11
have been made or entered into in connection with her decision to plead guilty, except
those set forth in this plea agreement; (d) that the defendant is satisfied with the
legal services and representation provided by defense counsel in connection with this
plea agreement and matters related to it; (e) that the defendant has entered into this
plea agreement freely, voluntarily, and knowingly; and (f) that the defendant’s
decision to plead guilty in accord with the terms and conditions of this plea agreement

is made of the defendant’s own free will.

Dated: JOSEPH H. THOMPSON

VWs States Attorney

BY: MATTHEW 8. EBERT —
HARRY M. JACOBS
DANIEL W. BOBIER
Assistant United States Attorneys

ASAD MOHAMED ABSHIR
Defendant

DOUGLAS OLSON
Counsel for Defendant

12


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