minnesota child care nonprofit 990 analysis
minnesota child care nonprofit 990 analysis
OPUS INVESTIGATION: Minnesota Child Care Nonprofit IRS 990 Analysis
Investigation Date: January 6, 2026 Classification: Financial Investigation Investigator: OPUS (Anthropic Claude Opus 4.5) For: Project Milk Carton / ARIA
EXECUTIVE SUMMARY
This investigation analyzes IRS Form 990 filings and financial data for Minnesota child care nonprofits, with particular focus on organizations connected to the largest pandemic relief fraud scheme in U.S. history. The Feeding Our Future fraud case ($250+ million) has triggered broader scrutiny of child care funding in Minnesota, with federal prosecutors estimating total fraud across all programs could exceed $9 billion.
Key Findings: - 78 defendants indicted in Feeding Our Future case; 50+ guilty pleas, 7 trial convictions - Feeding Our Future’s tax-exempt status was revoked by IRS in February 2020 - Shell companies created to launder federal child nutrition funds - Cross-pollination identified between Minnesota Head Start Association and PICA boards - PICA executive compensation controversy: CEO salary exceeded federal caps by $69,000+ - HHS has frozen $10 billion in child care funding to 5 states including Minnesota
ORGANIZATION PROFILES
1. FEEDING OUR FUTURE (REVOKED)
Status: Tax-exempt status REVOKED by IRS (February 2020) Founder: Aimee Bock (convicted March 2025) EIN: Tax-exempt status revoked; records indicate automatic revocation for failure to file Form 990
Criminal Case Summary
- Total Fraud: $250 million+ in federal child nutrition funds
- Scheme: Created 299 “meal sites” claiming to serve 90 million meals; FBI surveillance showed sites claiming 6,000 meals/day averaged ~40 visitors
- Shell Companies: Dozens created to receive/launder funds
- Administrative Fees: Feeding Our Future received $18 million+ in fraudulent admin fees
- Fake Rosters: Created using listofrandomnames.com; Excel formulas inserted random ages 7-17
Key Convicted Individuals
| Name | Role | Status |
|---|---|---|
| Aimee Bock | Founder/Executive Director | Convicted 7 federal charges (March 2025) |
| Salim Said | Safari Restaurant Co-Owner | Convicted all counts |
| Abdiaziz Farah | Empire Cuisine & Market | Sentenced 28 years |
| Abdi Nur Salah | Stigma-Free International | Pled guilty to wire fraud |
Connected Shell Organizations
- Empire Cuisine and Market LLC - Received $28 million+ in fraudulent funds
- Safari Restaurant & Event Center - Part of $45 million fraud scheme
- S&S Catering - Part of fraud network
- Stigma-Free International - Created by Minneapolis City Council member Jamal Osman; transferred to fraud conspirators in October 2020
- Nur Consulting LLC - Money laundering vehicle
2. PARTNERS IN QUALITY CARE / PARTNERS IN NUTRITION
EIN: 47-4302258 Location: St. Paul, MN Status: Active (requires further investigation)
Note: Limited 990 data available. Organization appears in federal nutrition program records. Distinct from the “Care Partners” organization (EIN 41-2011488) based in Eveleth, MN.
3. MINNESOTA HEAD START ASSOCIATION
EIN: 36-3579547 Location: PO Box 667, Sauk Rapids, MN 56379 Tax-Exempt Status: 501(c)(3) since May 1989 Category: Elementary/Secondary Education (B22Z)
Financial Summary (FY 2024 - Ending August 2024)
| Metric | Amount |
|---|---|
| Total Revenue | $437,524 |
| Total Expenses | $457,555 |
| Net Income | -$20,031 |
| Total Assets | $377,688 |
| Total Liabilities | $0 |
Revenue Sources
- Program Services: $409,137 (93.5%)
- Contributions: $28,137 (6.4%)
- Investment Income: $250 (0.1%)
Executive Compensation Trend
| Fiscal Year | Executive Compensation |
|---|---|
| 2024 | $186,635 |
| 2023 | $158,633 |
| 2022 | $136,887 |
| 2021 | $51,907 |
| 2020 | $101,508 |
FLAG: Executive compensation increased 259% from 2021 to 2024.
Officers & Directors (2024)
| Name | Position | Compensation |
|---|---|---|
| Mary Lockhart Findling | Chairman | $0 |
| Sandy Simar | 1st Vice Chair | $0 |
| Michelle Wilkowski | 2nd Vice Chair | $0 |
| Skip Ferris | Treasurer | $0 |
| Becky Shogren | Secretary | $0 |
| Kraig Gratke | Executive Director | See compensation above |
Full Board Roster (Cross-Reference for Network Analysis)
Directors: Penny Paul (TCC), Sandy Simar (Families First), Michelle Wilkowski (Mahube Otwa), Mary Lockhart-Findling (United Community Action Partnership), Lee Turney (Leech Lake Band of Ojibwe), Monshari Chandler (PICA)
Staff: Edna Tudon (Tri Valley), Vicki Dunlop (CAPRW), Jillayne Schuder (Families First), Judy Baker (PICA), Becky Shogren (United CAP), Deb Wege (Scott Carver Dakota CAP)
Parents: Nicolette Housey, Harlie Larson, Danielle Lemond, Acacia Ward, Cassie Adams
Additional: Dennis DeMers (Tri-Valley), Rico Alexander (PICA), Skip Ferris (AEOA), Maureen Rosato (Kootasca)
4. MINNESOTA COMMUNITY ACTION PARTNERSHIP (MinnCAP)
EIN: 41-1407742 Location: 100 Empire Dr Suite 202, Saint Paul, MN 55103 Tax-Exempt Status: 501(c)(4) since October 1992 Type: Civic league/social welfare organization
Financial Summary (FY 2024)
| Metric | Amount |
|---|---|
| Total Revenue | $1,229,528 |
| Total Expenses | $1,094,348 |
| Net Income | $135,180 |
| Total Assets | $955,661 |
| Total Liabilities | $15,109 |
Revenue Sources
- Program Services: $805,296 (65.5%)
- Contributions: $399,382 (32.5%)
- Investment Income: $24,850 (2.0%)
Key Employees & Compensation (2024)
| Name | Title | Compensation | Other |
|---|---|---|---|
| Lori Schultz | Executive Director | $147,605 | $20,114 |
| Kraig Gratke | Ed MN Head Start Assoc | $114,941 | $19,066 |
FLAG: Kraig Gratke receives compensation from BOTH Minnesota Head Start Association AND Minnesota Community Action Partnership. Total: $186,635 + $134,007 = $320,642 across two organizations.
Board of Directors (2024)
| Name | Position | Organization |
|---|---|---|
| Amanda Mackie | Board Chair | Minnesota Valley Action Council |
| Deb Brandt | Vice Chair | United Community Action Partnership |
| Jennifer Hengel | Secretary | SEMCAC |
| Kendra Krolik | Treasurer | Community Action Partnership of Hennepin County |
| Lori Schwartz | Member | - |
| Teresa Carter | Member | - |
Additional Members: Patrick McFarland, Mark Page, Barb Moran, Sonia Gass, Jeff Hansen, Catherine Johnson, Marta Carrigan, Denise Stewart, Liz Kuoppala, Sharon Millner, Debbie Larson, Darci Goedtke, Jenny Larson, Colleen Orne, Melody Hedden, Missy Becker-Cook, Carrie Tripp
5. PARENTS IN COMMUNITY ACTION (PICA)
EIN: 41-0956226 Location: 700 Humboldt Ave N, Minneapolis, MN 55411 Tax-Exempt Status: 501(c)(3) since May 1971 Category: Human Services - Multipurpose
Financial Summary (FY 2024)
| Metric | Amount |
|---|---|
| Total Revenue | $51,461,692 |
| Total Expenses | $39,431,279 |
| Net Income | $12,030,413 |
| Total Assets | $36,310,628 |
| Total Liabilities | $6,153,567 |
| Net Assets | $30,157,061 |
FLAG: Net income of $12 million on $51 million revenue (23.4% margin) is unusually high for a human services nonprofit.
Revenue Sources
- Contributions (Government Grants): $49,777,681 (96.7%)
- Program Services: $1,584,820 (3.1%)
- Investment Income: $99,191 (0.2%)
Key Employees & Compensation (FY 2024)
| Name | Title | Compensation | Other |
|---|---|---|---|
| Alyce M Dillon | Director of Strategic Management | $315,391 | $27,538 |
| Jay Alexander | Executive Director | $266,939 | $34,035 |
| Su Melton | Finance Director | $242,301 | $32,935 |
| Judith Baker | Director of Diversity | $212,099 | $21,355 |
| Gretchen Hengemuhle | CDA Advisor | $208,103 | $21,101 |
| Candee Lyn Melin | Deputy Director | $193,886 | $38,845 |
| Wanda Vorters | Director of Program Initiatives | $148,870 | $17,544 |
| Brody Burton | Facilities Director | $143,006 | $17,192 |
Total Executive Compensation: $837,200 (plus $210,545 in other compensation)
Executive Compensation Controversy
HISTORICAL FLAG - 2015 Star Tribune Investigation: - Alyce Dillon earned $250,451/year, exceeding federal cap of $181,500 - Dillon augmented salary by cashing unused sick time and vacation - Base pay was $183,500 - already above federal limit - Her salary was DOUBLE what Gov. Mark Dayton earned - Almost $50,000 more than next-highest social service agency executive - Other Head Start director (Patrick McFarland, Anoka County) earned ~$111,000
Board Response (2015): Board Treasurer Ed Sisola stated he was “not aware of the federal limits” and was “surprised it never came up in audits.”
Board of Directors (2024)
| Name | Position |
|---|---|
| Fran Stark | Board Chair |
| Guy Bowling | Vice Chair |
| Vernon Wetternach | Secretary |
| Anise Mazone | Treasurer |
| Sharon Sayles Belton | Board Member |
| Dr. Wallace Franklin | Board Member |
| Bryan Nelson | Board Member |
| Kassius Benson | Board Member |
Additional Members: Anissa Watkins, Sheyanga Beecher, Adriana Mozo, Dan Cain, Makeda Zulu, Shawnee Twiet, Tyanna Bryant (Policy Council Chair)
NOTABLE: Sharon Sayles Belton served as the first African American and first female Mayor of Minneapolis (1994-2001).
6. MINNESOTA CHILD CARE RESOURCE & REFERRAL NETWORK (Child Care Aware of Minnesota)
EIN: 41-1730422 Location: 10 River Park Plaza, Suite 820, Saint Paul, MN 55107 Tax-Exempt Status: 501(c)(3) since February 1993 Category: Human Services - Multipurpose
Financial Summary (FY 2024 - Ending September 2024)
| Metric | Amount |
|---|---|
| Total Revenue | $9,578,543 |
| Total Expenses | $9,246,252 |
| Net Income | $332,291 |
| Total Assets | $8,449,489 |
| Total Liabilities | $6,383,748 |
| Net Assets | $2,065,741 |
FLAG: Liabilities-to-Assets ratio of 75.55% indicates potential solvency concerns.
Revenue Sources
- Contributions: $9,167,897 (95.7%)
- Program Services: $306,135 (3.2%)
- Investment Income: $104,246 (1.1%)
Key Employees & Compensation
| Name | Title | Compensation | Other |
|---|---|---|---|
| Ann McCully | Executive Director | $126,354 | $19,841 |
| Calahena Merrick | Associate Director | $115,740 | $18,534 |
| Nou Thao | Associate Director | $105,000 | $9,898 |
Total Executive Compensation: $395,368
Board of Directors
| Name | Position |
|---|---|
| Marcia Schlattman | Board Chair |
| Liz Kuoppala | Board Vice Chair |
| Brittany Clausell | Board Secretary |
Charity Navigator Rating
- Overall Score: 81/100 (3 Stars - “Good”)
- Program Expense Ratio: 93.36% (Excellent)
- Liabilities to Assets: 75.55% (Poor - 0/15 points)
- Independent Board Members: 100%
- Audit Oversight: Yes
CONCERN: Form 990 not posted on organization’s website (0/4 points for transparency)
NETWORK ANALYSIS: BOARD CROSS-POLLINATION
Identified Overlapping Board Members/Staff
| Individual | Organization 1 | Organization 2 |
|---|---|---|
| Kraig Gratke | MN Head Start Assoc (Exec Dir) | MN Community Action Partnership (Ed) |
| Judy Baker | PICA (Director of Diversity) | MN Head Start Assoc (Board Staff) |
| Rico Alexander | PICA (Exec Dir) | MN Head Start Assoc (Board Member) |
| Monshari Chandler | PICA | MN Head Start Assoc (Board Director) |
| Liz Kuoppala | MN Child Care Resource Network (Vice Chair) | MN Community Action Partnership (Board) |
| Lori Schwartz | MN Community Action Partnership (Board) | MN Head Start Assoc (Previous involvement) |
Dual Compensation Flag
Kraig Gratke receives compensation from: - Minnesota Head Start Association: $186,635 (2024) - Minnesota Community Action Partnership: $134,007 ($114,941 + $19,066) - Combined Total: $320,642
Community Action Agency Network
Multiple board members represent local Community Action agencies that receive pass-through funding: - United Community Action Partnership (UCAP) - Minnesota Valley Action Council - Tri-Valley Opportunity Council - AEOA - Families First - CAPRW - Scott Carver Dakota CAP Agency - SEMCAC - Mahube Otwa
FRAUD NETWORK MAPPING: FEEDING OUR FUTURE
Shell Company Network
FEEDING OUR FUTURE (Aimee Bock)
│
├── Empire Cuisine & Market LLC ($28M+)
│ └── Abdiaziz Farah (28 years prison)
│
├── Safari Restaurant & Event Center ($45M scheme)
│ └── Salim Said (Convicted)
│
├── S&S Catering
│
├── Stigma-Free International
│ ├── Originally: Jamal Osman (City Council)
│ └── Transferred to: Abdi Nur Salah (Guilty)
│
├── Nur Consulting LLC (Money laundering)
│
└── [Dozens of additional shell companies]Political Connections
| Individual | Political Role | Fraud Connection |
|---|---|---|
| Abdi Nur Salah | Former Senior Policy Aide to Mayor Jacob Frey | Registered Stigma-Free International; pled guilty to wire fraud |
| Jamal Osman | Minneapolis City Council Member | Founded Stigma-Free International (August 2019); transferred control October 2020 |
CURRENT FEDERAL INVESTIGATION (January 2026)
HHS Actions
- $10 billion frozen in child care funding to 5 states (CA, CO, IL, MN, NY)
- 245+ fraud reports received since tip line launched (December 30, 2025)
- Policy change: Rescinding Biden-era rules that allowed states to pay providers without verifying attendance
Estimated Total Fraud
- U.S. Attorney Joseph Thompson: Total fraud could exceed $1 billion when all investigations complete
- Federal prosecutors: Total fraud across all Minnesota programs could top $9 billion
Congressional Oversight
- House Oversight Committee (Chair: Rep. James Comer) opened investigation
- Hearings planned on Minnesota public assistance program fraud
Political Fallout
- Governor Tim Walz announced he will not seek reelection
- Treasury Department investigating whether funds reached al-Shabaab (no evidence confirmed)
RED FLAGS & RECOMMENDATIONS
Financial Red Flags
- PICA Net Income Anomaly: $12 million surplus on $51 million revenue (23.4%) is unusual for human services nonprofit
- PICA Executive Compensation: Multiple executives earning $200K+ at federally-funded Head Start
- Dual Compensation: Kraig Gratke receiving $320K+ across two related organizations
- MN Child Care Network Solvency: 75.55% liabilities-to-assets ratio
- MN Head Start Association: Executive compensation increased 259% (2021-2024)
Governance Red Flags
- Board Interlocking: Multiple individuals serve on multiple related organization boards
- Federal Cap Violations: Historical pattern of Head Start director compensation exceeding federal limits
- Audit Awareness: Board members historically “not aware” of federal compensation limits
Recommendations for Further Investigation
- Request Schedule B (donor lists) for all organizations to identify common funders
- Request Schedule L (loans to insiders) to check for self-dealing
- Request Schedule R (related organizations) to map full network
- Audit PICA financial statements given unusual surplus
- Track Feeding Our Future defendants for connections to other nonprofits
- Review subcontractor relationships between Community Action agencies
SOURCES
Primary Sources - ProPublica Nonprofit Explorer
- Minnesota Head Start Association
- Minnesota Community Action Partnership
- Parents In Community Action
- Minnesota Child Care Resource and Referral Network
Government & Legal Sources
- DOJ: Federal Jury Convicts Feeding Our Future Mastermind
- IRS Criminal Investigation: Feeding Our Future Guilty Pleas
- FBI: Dozens Charged in $250 Million COVID Fraud
- HHS: Closing Biden-Era Loophole
News Sources
- Star Tribune: Minneapolis Head Start Director’s Salary Exceeds Federal Cap
- MPR News: Feeding Our Future Aimee Bock Convicted
- CBS News: Minnesota Fraud Schemes
- CNN: Minnesota Child Care Fraud Investigation
- Sahan Journal: Who’s Been Charged
Charity Ratings
Organization Websites
- Minnesota Head Start Association Board
- Minnesota Community Action Partnership Leadership
- PICA Head Start
Report compiled by OPUS for ARIA/Project Milk Carton Investigation Date: January 6, 2026
501(c)(3) Nonprofit
Disclaimer: This report contains information gathered from publicly available sources (OSINT). All findings should be independently verified. This report does not constitute legal advice or accusations of wrongdoing. Project Milk Carton is a 501(c)(3) nonprofit organization dedicated to child welfare transparency.