Metro area business associates charged with multiple tax crimes 

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Hennepin County Attorney’s Office recently charged Ali Farah Egal and Fardous Jama Egal, who are husband and wife and residing in Mendota Heights, with seven felony counts each of filing false or fraudulent individual income tax returns. Abdirisak Abdirahman Abdulle, of Blaine, is charged with 10 felony counts of filing false or fraudulent individual income tax returns, and his wife Samsam Gatah is charged with two felony counts of filing false or fraudulent individual income tax returns.

According to the complaints, Mr. Egal and Mr. Abdulle’s business, Egal Properties LLC, did not file tax returns or report any income. Investigators linked banking records of Egal Properties LLC to all four defendants, and from 2019 through 2024 more than $10 million allegedly went through the Egal Properties LLC bank accounts according to the complaints. The defendants used the Egal Properties money to purchase over $7 million worth of commercial real estate at three other locations around Minneapolis.

At least 14 businesses have been registered to these individuals or as operating at Egal Properties LLC’s address of 3016/3018 17^th Ave. S. in Minneapolis. The Egals or Mr. Abdulle and Ms. Gatah are allegedly associated with 10 of the businesses including Global Learning Childcare Center L.L.C., Professional PCA Services LLC, African Halal & Deli Inc., Ruwayda Kitchen L.L.C., Egal Properties LLC, MN Best, Aaron Child Care Inc., Barwaaqo Kitchen LLC, and Ruwayda Kitchen and Catering LLC. 

The complaints describe underreporting and nonfiling tax issues for the businesses associated with these individuals and uncovered a network of family‑controlled businesses used to hide personal spending and avoid taxes, with significant income coming from public childcare and nutrition programs. According to the complaints, these businesses routinely contracted with each other and moved large sums of money between accounts tied to the defendants. This included using government assistance programs to provide meals at daycares connected to them, then charging well above the contracted amounts and depositing the excess funds into accounts associated with the defendants.

For example, MN Best paid Ruwayda Kitchen L.L.C. over $2 million for children’s meals from 2020 to 2024. Ruwayda Kitchen L.L.C and Ruwayda Kitchen and Catering LLC business accounts were used for significant personal spending. Ruwayda Kitchen’s financial accounts showed only $19,646 in possible food purchases. The complaints allege that some of the food assistance transactions were associated with Feeding Our Future executive director Aimee Bock.

The complaints go on to state that Mr. Abdulle operated Professional PCA Services LLC. After an overpayment of more than $405,000 was assessed by the state, he shut down the business in August 2023 and transferred $351,400 from the business to purchase his personal home. The debt remained unpaid. 

Mr. Egal and Mr. Abdulle failed to file tax returns for many of their businesses including Global Child Learning Center L.L.C., Aaron Child Care, and Barwaaqo Kitchen. The complaints allege that businesses failed to file corporate tax returns for multiple periods while all the defendants also failed to claim the financial distributions from the business accounts on their individual income tax returns. 

The Egals allegedly owe more than $350,000 in state taxes while Mr. Abdulle and Ms. Gatah owe over $777,000. 

Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both. Defendants are presumed innocent unless and until proven guilty.

Although most taxpayers comply with tax laws voluntarily, the department takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.

Many of the department’s criminal case referrals come from public tips. There is a 24-hour tip line for anyone who suspects that a person or business is violating Minnesota tax laws. Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500. Tips can also be submitted to the department by email at tax.fraud@state.mn.us. Tipsters may choose to remain anonymous. 

Combating tax fraud and protecting taxpayer dollars

Since 2022, Revenue has collected nearly $2 billion in compliance enforcement efforts, and stopped nearly $300 million in fraudulently filed returns, saving the state nearly $2.3 billion.

Revenue’s actions have protected more than $550 million per year through stopping fraud and enforcing compliance.

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