2 weeks ago
Opening statements are expected Monday successful nan fraud proceedings of 7 group charged successful what national prosecutors person called a monolithic strategy to utilization lax rules during the COVID-19 pandemic and bargain from a programme meant to supply meals to children successful Minnesota.
The 7 will beryllium nan first of 70 defendants to spell connected proceedings successful nan alleged scam. Eighteen others person already pleaded guilty.
Prosecutors person said nan 7 collectively stole complete $40 cardinal successful a conspiracy that costs taxpayers $250 cardinal — 1 of nan largest pandemic-related fraud cases successful nan country. Federal authorities opportunity they person recovered astir $50 million.
10 CHARGED IN SCHEME TO DEFRAUD FOOD PROGRAM FOR LOW-INCOME CHILDREN IN MINNESOTA
Prosecutors opportunity conscionable a fraction of nan money went to provender low-income kids, and that nan remainder was spent connected luxury cars, jewelry, recreation and property.
After a awesome fraud scheme, 7 group are being charged pinch exploiting nan lax rules during nan COVID-19 pandemic and stealing millions of dollars from nutrient programs erstwhile believed to supply meals to children successful Minnesota. (Shari L. Gross/Star Tribune via AP, File)
THE ALLEGED PLOT
The nutrient assistance came from nan U.S. Department of Agriculture and was administered by nan authorities Department of Education. Nonprofits and different partners nether nan programme were expected to service meals to kids.
Two of nan groups involved, Feeding Our Future and Partners successful Nutrition, were mini nonprofits earlier nan pandemic, but successful 2021 they disbursed astir $200 cardinal each. Prosecutors allege they produced invoices for meals that were ne'er served, ran ammunition companies, laundered money, indulged successful passport fraud, and accepted kickbacks.
THE BIG PICTURE
An Associated Press study published past June documented really thieves crossed nan state plundered billions successful national COVID-19 alleviation dollars successful nan top grift successful U.S. history. The money was meant to conflict nan worst pandemic successful a period and stabilize an system successful freefall.
But nan AP recovered that fraudsters perchance stole much than $280 billion, while different $123 cardinal was wasted aliases misspent. Combined, nan nonaccomplishment represented 10% of nan $4.3 trillion nan authorities disbursed successful COVID alleviation by past fall. Nearly 3,200 defendants person been charged, according to nan U.S. Justice Department. About $1.4 cardinal successful stolen pandemic assistance has been seized.
THIS CASE
The defendants going connected proceedings Monday earlier U.S. District Judge Nancy Brasel successful Minneapolis are Abdiaziz Shafii Farah; Mohamed Jama Ismail; Abdimajid Mohamed Nur; Said Shafii Farah; Abdiwahab Maalim Aftin; Mukhtar Mohamed Shariff; and Hayat Mohamed Nur. They person each pleaded not guilty. Their proceedings is expected to past astir six weeks.
MINNESOTA COURT RECEIVES 1ST ROUND OF GUILTY PLEAS IN $250M SCHEME TO DEFRAUD FEDERAL MEALS PROGRAM
"The defendants’ fraud, for illustration an fierce cancer, dispersed and grew," prosecutors wrote successful a summary of their case.
Prosecutors opportunity galore of nan purported feeding sites were thing much than parking tons and derelict commercialized spaces. Others turned retired to beryllium metropolis parks, flat complexes and organization centers.
"By nan clip nan defendants’ strategy was exposed successful early 2022, they collectively claimed to person served complete 18 cardinal meals from 50 unsocial locations for which they fraudulently sought reimbursement of $49 cardinal from nan Federal Child Nutrition Program," prosecutors wrote.
FUTURE CASES
Among nan defendants awaiting proceedings is Aimee Bock, nan laminitis of Feeding our Future. She's 1 of 14 defendants expected to look proceedings together astatine a later date. Bock has maintained her innocence, saying she ne'er stole and saw nary grounds of fraud among her subcontractors.
THE POLITICS
The ungraded stirred up nan 2022 legislative session and run successful Minnesota.
Republicans attacked Gov. Tim Walz, saying he should person stopped nan fraud earlier. But Walz pushed back, saying nan state’s hands were tied by a tribunal bid successful a suit by Feeding Our Future to resume payments contempt its concerns. He said nan FBI asked nan authorities to proceed nan payments while nan investigation continued.
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The Minnesota Department of Education now has an independent inspector wide who is amended empowered to analyse fraud and waste.
