Attorney General Ellison shuts down nonprofit accused of being a conduit for fraud
Investigation found misuse by founder and president Mekfira Hussein of Shamsia Hopes’ charitable assets
September 17, 2024 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today that a Shakopee-based nonprofit organization, Shamsia Hopes, has agreed to dissolve following governance failures that resulted in the misuse of the entity’s assets by its founder and president Mekfira Hussein. The Assurance does not prevent the Attorney General from bringing claims against Ms. Hussein or any other individual.
An investigation by the Charities Division of the Attorney General’s Office (AGO) found that the corporation flouted governance requirements, enabling rampant misuse. Despite the requirement of Minnesota law that nonprofit corporations be managed by a board of directors, Ms. Hussein ran Shamsia Hopes by herself or almost completely by herself. This allowed Ms. Hussein to misuse the nonprofit’s assets on items like a $93,250 Porsche and paying off her and her husband’s $173,438 mortgage. The investigation also found that Ms. Hussein had steered at least $5.4 million to Oromia Feeds LLC, a company that was created by her husband, Abduljabar Hussein. Mr. Hussein was a vice president of Shamsia Hopes from 2015 to 2020.
The Attorney General’s Office also found that Shamsia’s board of directors allowed Ms. Hussein to control the organization’s finances with minimal if any oversight, and allowed her to remain its president, secretary, treasurer, and director despite allegations against her in a federal indictment.
“Minnesota nonprofit corporations are obligated by law to spend money on their mission alone, not to enrich their founders or the founders’ families,” Attorney General Ellison said. “Illegal activity like this risks eroding Minnesotans’ faith in our non-profits, which would be a genuine shame given the important work non-profits do across our state every single day. Shamsia Hopes’ misuse of charitable assets is as disappointing as it is unacceptable, and I am glad to be shutting them down.”
The Charities Division initiated an independent civil investigation after Mekfira and Abduljabar Hussein were indicted by a federal grand jury on charges related to improper acquisition and use of child-nutrition funds, including conspiracy to commit wire fraud, wire fraud, and money laundering. Only a small fraction of the $5.4 million routed to Oromia Feeds was actually spent on food, according to the indictments.
Under the terms of an Assurance of Discontinuance (“Assurance”) filed in Scott County, Shamsia Hopes will stop accepting donations and will begin the dissolution process within 60 days of the court’s approval of the Assurance.
The AGO’s Charities Division has civil enforcement authority over the state’s nonprofit corporation, charitable-solicitation, and charitable-trust laws. The Charities Division does not enforce criminal laws. Under Minnesota law, nonprofit board members and executives owe fiduciary duties to act in the best interests of the charities that they serve, including putting the interests of the nonprofit above any personal financial interests. Information about these fiduciary duties, and other resources to help nonprofit leaders properly serve their organizations, is on the AGO’s website at www.ag.state.mn.us/Charity/InfoNonProfits.asp.
The public may submit complaints to the Attorney General about nonprofit directors and officers putting their own interests before the charity’s interests by using a form on the Attorney General’s website. The Office can also be reached by calling (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).
