Senators request fraud probe of Minneapolis charity favored by Ilhan Omar

Republican senators have asked the Justice Department to investigate a Minneapolis-based charity, which nearly landed $1 million in taxpayer money courtesy of Rep. Ilhan Omar, saying it shows signs of being a fraudulent operation.

The nonprofit group Generation Hope MN bills itself as a “Somali-led” organization offering drug addiction recovery services. It says it helps “East African youth” get “culturally specific treatment.”

Republican Sens. Joni Ernst of Iowa and Mike Lee of Utah said something about the operation is fishy, such as its locations. One is a shared space with a Somali restaurant, and the other is a home in a residential area.

The senators also noted the organization’s relatively paltry staffing and financing, as reported to the IRS on its nonprofit tax disclosure forms.

“This spending profile suggests minimal direct services, opaque financial reporting, and heavy reliance on contractor payments — conditions that should trigger immediate scrutiny, not federal taxpayer dollars,” the two senators said in a letter asking Attorney General Pam Bondi to investigate.

They said they saw parallels to some of the Somali-led operations in the news recently. Federal authorities in Minnesota have secured dozens of convictions in a $300 million pandemic meals program fraud scheme and suspect similar fraud in Medicaid.

The fact that Congress was poised to give the group a $1 million earmark, a specific grant of taxpayer funds, deepened the senators’ outrage.

They persuaded fellow lawmakers to agree this month to strip the earmark from a spending package.

The senators said a brother of one of the Generation Hope founders was arrested in 2015 on charges of plotting to join the Islamic State group.

“It is almost too insane to believe: Congress trying to send $1 million to an ‘East African’ addiction center operated above a Somali Restaurant and run by three people who live in the same house, with a relative who tried to join ISIS,” Ms. Ernst said.

Mr. Lee added that “stopping these funds is not enough: we should pursue every red flag, uncover every wrongdoing, and suspend federal eligibility for taxpayer dollars.”

The earmark was requested by Ms. Omar, herself a Somali refugee, and the state’s two Democratic senators: Amy Klobuchar and Tina Smith.

Ms. Omar initially asked for nearly $1.5 million for Generation Hope.

She said it would go to “job-specific training, computer skills development, peer support services and access to education.”

“Their wraparound services also address addiction recovery, mental health and housing, ensuring individuals have the comprehensive support they need reenter the economy and community,” Ms. Omar told the leaders of the House Appropriations Committee.

Ms. Smith said in her justification for the project that it would help “justice-involved Minneapolis residents break the cycle through job training and support.”

“Partnering with apprenticeship programs, it provides certifications and real-world experience, improving employment prospects and fostering reintegration,” Ms. Smith said.

The spending committees designated $1,031,000 in taxpayer money from the Justice Department’s Byrne Grant program for the project. That money was stripped after Republicans raised their concerns.

“Thankfully, Senator Lee and I were able to expose and stop this blatant waste, but I remain extremely concerned about what other nefarious groups are being funded by the thousands of other earmarks these bills are larded up with that no one has had time to thoroughly review,” Ms. Ernst said.

Generation Hope says it was founded in 2019 by Abdirahman Warsame and Khadar Abi, though the IRS said in a 2021 letter that its tax-exempt status began April 20, 2021.

On its website, Generation Hope says it has “reached thousands of individuals” and “connected hundreds” to treatment and services for “substance use disorders.” Its referral form offers “peer recovery” services.

The organization didn’t respond to an email or multiple phone calls. Mr. Warsame’s assistant said he was not available.

Ms. Omar’s office also didn’t respond to multiple inquiries for this report.

The Washington Times also sought comment from both U.S. senators from Minnesota.

The organization has filed only Form 990 for the 2023 tax year. It showed $142,858 in revenue in 2022 and $166,859 in 2023.

It spent $171,045 in 2023. Most of that, $119,966, was paid to contractors or went to “professional fees.”

That was significantly less financial capacity than other nonprofits that Congress approved for million-dollar earmarks in the Justice Department spending bill.

Generation Hope reported just four officers or key employees on its tax form: Mr. Abi, the president, who was listed as working about four hours a week; Treasurer Asia Mohamed and Secretary Yusra Mohamud, each listed at two hours a week; and Mr. Warsame, the executive director, who worked 30 hours a week.

Mr. Warsame was the only one receiving any pay that year, at $44,071.

His brother Abdirizak Mohamed Warsame was arrested in 2015 as part of a group preparing to travel to Syria to join ISIS. Federal prosecutors said he was a leader of the operation and, at one point, was elected its emir.

He pleaded guilty, testified against his friends and later took part in a “60 Minutes” interview to caution others not to fall for ISIS propaganda. That interview aired Oct. 30, 2016.

He was released from prison in 2019.

Ms. Ernst and Mr. Lee said in their letter to Ms. Bondi that Abdirizak Warsame’s past and his younger brother’s praise for him raised “most serious concerns” about Generation Hope’s activities.

Abdirizak Warsame, though not listed as a key employee or officer on the 2023 tax form, does have several entries in Generation Hope’s automated phone directory.