Keith Ellison shuts down nonprofit run by Minneapolis Council Member Jamal Osman’s wife

Minnesota Attorney General Keith Ellison’s office has reached a settlement with Ilo Amba’s charity over meals to children during the COVID-19 pandemic. It’s Feeding Our Future adjacent.

The Minnesota Star Tribune
November 11, 2024 at 4:38PM
Minneapolis city councilor Jamal Osman speaks during a discussion of a new ordinance raising pay for rideshare drivers.
Minneapolis City Council Member Jamal Osman speaks during a council meeting in January. (Alex Kormann/The Minnesota Star Tribune)

Attorney General Keith Ellison announced Friday that he’s reached a settlement that will shut down a nonprofit run by Minneapolis City Council Member Jamal Osman’s wife, Ilo Amba.

Under the agreement, Urban Advantage Services must dissolve and transfer its assets to other charitable organizations.

The attorney general sued the nonprofit last year, alleging Amba created a “sham” charity to enrich herself and her family by exploiting a federal program meant to feed hungry children during the COVID-19 pandemic. He called it a “scheme that the federal government has described as ‘an egregious plot to steal public funds meant to care for children.’”

So far, 70 people have been criminally charged in that case with defrauding the child nutrition program; 28 have been convicted, three are fugitives outside of the U.S., and one defendant died. The federal case is often referred to as Feeding Our Future because that’s the name of the nonprofit prosecutors allege was at the center of the fraud.

Urban Advantage was reimbursed over $461,500 in federal funds in 2020 and 2021, according to the Minnesota Department of Education, which administers the nutrition program. The nonprofit ceased operating — disconnecting its phone line and website — in January 2022, the same month the federal investigation became public when multiple homes and businesses were raided by the FBI.

Amba has not been charged with any crimes, and the lawsuit settlement doesn’t preclude any claims against the nonprofit officers or directors or shield them from criminal liability. The attorney general has civil enforcement authority over nonprofits but doesn’t enforce criminal laws.

Osman did not responded to a request for comment Monday, and Amba couldn’t be reached for comment.

Osman was first elected to the City Council in a 2020 special election to fill the vacant Ward 6 seat, and was re-elected last year. Ellison endorsed his re-election, even though about a month later his office filed a lawsuit against Amba’s nonprofit. Ellison and Osman are both Democrats.

Ellison alleged the nonprofit committed several governance violations as it sought federal funding through the meals program in 2021: It failed to employ a treasurer, have a registered address, maintain adequate books, register with the state as a charitable trust and file IRS tax forms. In a court document outlining the settlement, the Attorney General’s Office said the nonprofit’s board of directors met three times in 2021, but did not meet in 2022; had unorganized, difficult-to-interpret accounting records, which consisted of five pieces of binder paper; and abandoned the office site it registered with the state.

The nonprofit “abandoned its corporate purpose,” the state alleged.

“Minnesotans are a generous people, and we expect our charities to obey these rules, keep proper records, and work to help people who need it. Urban Advantage Services fell short of these expectations and failed to follow the law, so I’m ensuring they dissolve,” Ellison said in a news release.

Urban Advantage was founded by Amba in November 2020 as a food shelf whose mission was “to provide skills building and employment resources that lead people to economic opportunities that improves their quality of life,” and to “inspire learning and sharing of knowledge by connecting people to each other through events and conferences.”

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Deena Winter

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Deena Winter is Minneapolis City Hall reporter for the Star Tribune.

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