A Minnesota lawmaker says the arrest of a woman tied to the Feeding Our Future scandal highlights years of systemic failures and the urgent need for reform in how the state oversees taxpayer-funded care programs.
Hibo Daar, 50, was arrested at the Minneapolis-St. Paul International Airport this week as she allegedly tried to flee the country. Prosecutors say she orchestrated a massive fraud through her business, Northside Wellness Center, under the sponsorship of Feeding Our Future — the nonprofit behind the largest COVID-19-related fraud case in U.S. history.
According to the U.S. Attorney’s Office, Daar used inflated meal counts, false invoices, and fake rosters to claim over $2.4 million in reimbursements — money meant to feed children during the pandemic.
“Criminals who exploit government programs for personal gain will face the full weight of justice. The FBI and our law enforcement partners condemn these actions and will continue to work to protect the public from these damaging schemes,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis.
Investigators say Daar pocketed most of it, wiring funds to family and associates, and allegedly paying $72,000 in bribes to a Feeding Our Future insider to ensure her site kept getting paid.
MDH documents raise additional concerns
A 2008 document from the Minnesota Department of Health (MDH) lists a “Hibo Daar” as the administrator of a home health business called New American Home Healthcare.
During a compliance call in 2008, state officials walked the administrator of New American Home Healthcare through dozens of regulations — from background checks to infection control — and issued a checklist of responsibilities required under her Class A license.
Alpha News also uncovered records showing that in 2010, New American Home Healthcare was cited in a state licensing survey for multiple violations.
The correction order issued by MDH listed failures such as not screening employees for tuberculosis, inadequate supervision of unlicensed staff, and missing service agreements, abuse prevention plans, and required client documentation.
Rep. Gillman: ‘Frustrating’ to see lack of action
“This is just another example of people who come here — or live here — and exploit millions of dollars meant for our most vulnerable,” said Rep. Dawn Gillman, R-Dassel.
Gillman, who serves as vice chair of the House Human Services Finance Committee and is currently part of a working group rewriting oversight policy, said the lack of guardrails across Minnesota’s sprawling human services programs has created a “nauseating” breeding ground for fraud.
“We have got to change legislation to make it more difficult for fraudsters to access taxpayer money,” Gillman said. “This woman had already been through a whole checklist of what she was supposed to be doing. And then we see what she pulled off during the Feeding Our Future scandal? It’s incredibly frustrating.”
Gillman said she forwarded the documents to the chair of the state’s fraud committee for further review. She wonders if Daar is still receiving state money through other business interests — something she said the Department of Human Services (DHS) has the authority to immediately stop if there’s credible evidence.
“I’ve asked DHS directly: If this woman has other revenue streams from the state, why aren’t the payments stopped?” Gillman said. “Under current law, they already have the authority to freeze those funds. They don’t need more money or more staff. They need the will to act.”
Thousands of autism providers with little-to-no oversight, Gillman warns
Gillman also raised concerns about another ballooning state program: Early Intensive Developmental and Behavioral Intervention (EIDBI), a Medicaid-funded autism therapy benefit. She said the number of providers in the program skyrocketed from 300 in 2017 to nearly 12,000 today.
“We’re talking about a floodgate of money, including federal matching funds, with almost no oversight,” she said. “This is not about denying help to children. This is about protecting the integrity of the system that’s supposed to help them — and stopping people who are clearly gaming it.”
One of the most alarming issues, Gillman said, is that providers in the EIDBI program are not currently required to be licensed — a gap she and others are now working to close.
“Right now, someone can bill the state without any formal license, and that opens the door to fraud,” stated Gillman, who added that efforts to mandate licensure are gaining bipartisan support, with lawmakers on both sides of the aisle recognizing the urgent need for accountability in the rapidly growing program.
Gillman later issued a public statement urging stronger oversight measures in light of the arrest.
“The latest arrest related to Feeding Our Future shows that the legislature and the Governor need to step up big time — we need to take real steps to root out fraud and ensure accountability for those who enable it,” said Gillman.
“The woman arrested this week has been involved in MDH-licensed businesses for nearly 20 years. House Democrats had the opportunity to stop fraud like this in its tracks by passing a bill for an independent OIG on the last night of session. It passed the Senate with overwhelming bipartisan support, but instead of joining House Republicans to send it to the Governor, Democrats locked arms against it. I look forward to working with the Human Services Working Group to create more guardrails around program integrity during special session.”
As of now, Daar is being held in custody and was scheduled for a detention hearing on May 30.
The Department of Human Services did not respond to a request for comment.
Jenna Gloeb
Jenna Gloeb is an Edward R. Murrow Award-winning journalist, media producer, public speaker, and screenwriter. Most recently, she worked as a reporter and on-air host for CCX Media. Jenna is a Minnesota native and resides in the Twin Cities with her husband, son, daughter, and two dogs.
