St. Paul, Minnesota’s Abdul Abubakar Ali pleads guilty to his role in $250 million fraud scheme

Abdul Abubakar Ali, 40, of Saint Paul, Ramsey County, Minnesota, United States is the owner of Bilterms Solutions Inc. Based in St. Paul, the company was incorporated on May 16, 2019.

Amid the new coronavirus (COVID-19) pandemic, Ali and Bilterms Solutions Inc. were involved in a $250 million fraud scheme. From December 2020 through January 2022, he and his co-conspirators participated in a fraudulent scheme to obtain and misappropriate millions of dollars in federal child nutrition program funds intended as reimbursements for the cost of serving meals to underprivileged children.


After enrolling a non-profit entity called Youth Inventors Lab in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future, Ali and his co-conspirators started submitting claims for reimbursement for purportedly serving meals to hundreds or thousands of children a day. They prepared and submitted fake invoices purporting to document the purchase of food from a vendor S & S Catering.

However, neither did S & S Catering provide meals to Youth Inventors Lab nor did Youth Inventors Lab serve meals to children. Ali submitted fake invoices from Bilterms Solutions to Youth Inventors Lab for purportedly providing technology services, which he and his company did not actually perform. 


Ali received approximately $82,000 from Youth Inventors Lab and through Bilterms Solutions, he received $47,000 from co-conspirators made through another company called Franklyn Transportation. By claiming to have served more than 1.3 million meals between December 2020 through June 2021, Youth Inventors Lab fraudulently received $3,029,786 in reimbursements from Feeding Our Future.

On October 26, 2022, Ali appeared in U.S. District Court before Judge Nancy E. Brasel and pleaded guilty to one count of conspiracy to commit wire fraud. His sentencing hearing has yet to be scheduled.

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