Minnesota Attorney General Keith Ellison has announced the closure of a nonprofit organization run by Ilo Amba, the wife of Minneapolis City Council Member Jamal Osman. This decision follows allegations that the organization exploited federal funds intended for child nutrition during the COVID-19 pandemic.
Key Takeaways
- Attorney General Keith Ellison has reached a settlement to dissolve Urban Advantage Services, a nonprofit run by Ilo Amba.
- The nonprofit was accused of being a “sham” charity that misused federal funds meant for feeding children.
- The organization received over $461,500 in federal reimbursements in 2020 and 2021.
- The case is part of a larger investigation into fraud related to the child nutrition program, with 70 individuals charged so far.
Background Of The Case
The nonprofit Urban Advantage Services was founded by Ilo Amba in November 2020, with a mission to provide resources for economic opportunities and community engagement. However, the organization came under scrutiny when allegations surfaced that it was involved in a scheme to defraud the federal child nutrition program, which was designed to support children during the pandemic.
Ellison’s office filed a lawsuit against the nonprofit last year, claiming that it was created to enrich Amba and her family. The Attorney General described the operation as an “egregious plot to steal public funds meant to care for children.”
Legal Proceedings
Under the terms of the settlement, Urban Advantage Services must dissolve and transfer its assets to other charitable organizations. The lawsuit highlighted several governance violations, including:
- Failure to employ a treasurer.
- Lack of a registered address.
- Inadequate record-keeping and accounting practices.
- Failure to register as a charitable trust with the state.
- Non-filing of IRS tax forms.
In 2021, the nonprofit’s board of directors reportedly met only three times, and it ceased operations entirely in January 2022, coinciding with the public revelation of the federal investigation.
Broader Implications
The case against Urban Advantage Services is part of a larger investigation into fraudulent activities related to the child nutrition program, often referred to as the Feeding Our Future case. To date, 70 individuals have been criminally charged, with 28 convictions and several others still at large or deceased.
Ellison emphasized the importance of accountability in charitable organizations, stating, "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."
Conclusion
The closure of Urban Advantage Services marks a significant step in the ongoing efforts to combat fraud in nonprofit organizations, particularly those that serve vulnerable populations. As investigations continue, the case serves as a reminder of the critical need for transparency and accountability in the charitable sector.
