- Four Minnesota associates face twenty-six felony tax counts for allegedly concealing income through multiple businesses.
- Investigators allege the group owes over one million dollars in unpaid state income taxes.
- The case involves ten million dollars in transactions linked to childcare, real estate, and food services.
The Minnesota Department of Revenue and the Hennepin County Attorney’s Office announced felony tax charges July 14 against four business associates in the Twin Cities metro, alleging they concealed income through linked companies and left hundreds of thousands of dollars in state taxes unpaid.
Ali Farah Egal, Fardous Jama Egal, Abdirisak Abdirahman Abdulle and Samsam Gatah face a combined 26 felony counts. The department said the Egals allegedly owe more than $350,000 in state taxes, while Abdulle and Gatah allegedly owe over $777,000.
The charges accuse each defendant of filing false or fraudulent individual income tax returns. The county attorney’s office filed the criminal complaints after an investigation that reviewed banking records and used what officials called “lifestyle analysis.”
Free toolSubstantial Presence Test CalculatorThe defendants are presumed innocent until proven guilty. Their first appearances are expected in Hennepin County District Court in the coming weeks.
The case involves family-controlled businesses, unreported income and tax filings that prosecutors allege failed to reflect the defendants’ financial activity. The businesses operated in sectors including childcare, personal care services, food sales and real estate.
The complaints assign different counts to each defendant
| Defendant | Community | Felony counts | Alleged offense |
|---|---|---|---|
| Ali Farah Egal | Mendota Heights | 7 | Filing false or fraudulent individual income tax returns |
| Fardous Jama Egal | Mendota Heights | 7 | Filing false or fraudulent individual income tax returns |
| Abdirisak Abdirahman Abdulle | Blaine | 10 | Filing false or fraudulent individual income tax returns |
| Samsam Gatah | Blaine | 2 | Filing false or fraudulent individual income tax returns |
The Egals are married and live in Mendota Heights. Abdulle and Gatah, who are also married, live in Blaine.
Millions allegedly moved through connected companies
The allegations involve more than $10 million that investigators say moved through bank accounts for Egal Properties LLC between 2019 and 2024 without tax returns or reported income. Funds from the company allegedly helped purchase more than $7 million in commercial real estate in Minneapolis.
At least 14 businesses were linked to the defendants or their business address at 3016/3018 17th Ave. S. in Minneapolis. The list included Global Learning Childcare Center L.L.C., Professional PCA Services LLC, African Halal & Deli Inc., MN Best, Aaron Child Care Inc. and Ruwayda Kitchen L.L.C.
Banking records and lifestyle analysis formed part of the investigation into the defendants’ reported income and expenses. The allegations also involve revenue from public childcare and nutrition programs.
The complaints allege that some food-assistance transactions were associated with Aimee Bock, the former executive director of Feeding Our Future. The nonprofit was central to a massive federal fraud investigation in previous years.
Mary Moriarty leads the county attorney’s office that filed the complaints. The cases concern alleged state tax violations, and the charges do not establish guilt.
Abdulle allegedly moved money after a state assessment
One allegation concerns Professional PCA Services LLC, a company associated with Abdulle. Investigators say he shut down the business in August 2023 after the state assessed a $405,000 overpayment debt.
Abdulle allegedly transferred $351,400 from the company to buy a personal home while leaving the state debt unpaid. That allegation remains part of the criminal case against him.
The alleged transfer followed the state assessment and forms part of the broader accusations involving false or fraudulent income tax returns.
The charges carry prison and fine maximums
Each tax-related felony count carries a maximum penalty of five years in prison, a $10,000 fine, or both.
The department said most taxpayers comply voluntarily and described enforcement as necessary to administer tax laws fairly.
“Although most taxpayers comply with tax laws voluntarily, the department takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.”
The four cases are expected to proceed in Hennepin County District Court after the defendants’ initial appearances.
