Seven Defendants Face Charges in Scheme to Defraud Children’s Meal Program
Seven Minnesotans are set to stand trial for their alleged roles in a massive scheme to defraud a federal program designed to provide meals to low-income children during the COVID-19 pandemic. This trial marks the first step in holding accountable those accused in this significant case.
Conspiracy Alleged to Cost Taxpayers Millions
Prosecutors claim the seven defendants participated in a conspiracy that resulted in the theft of over $40 million from the program. This alleged fraud contributed to a total loss for taxpayers exceeding $250 million, making it one of the largest pandemic-related fraud cases uncovered nationwide.
Recovered Funds Represent Only a Fraction of Losses
While federal authorities have managed to recover approximately $50 million, a significant portion of the stolen funds remains unaccounted for. Prosecutors allege that only a small amount of the money was actually used for its intended purpose – feeding children in need.
Luxury Spending Allegedly Financed by Stolen Funds
Instead of reaching hungry children, prosecutors believe the stolen funds were used to finance lavish lifestyles for those involved in the scheme. Luxury cars, expensive jewelry, travel excursions, and property purchases are all listed as potential recipients of the misappropriated money.
Small Non-Profits at Center of Allegations
Two non-profit organizations, Feeding Our Future and Partners in Nutrition, stand at the heart of the alleged scheme. Prosecutors claim these groups, previously considered small operations before the pandemic, experienced a dramatic increase in activity in 2021, disbursing approximately $200 million each.
