Federal authorities have charged 47 people in Minnesota in what they said was the largest fraud scheme yet to take advantage of the COVID-19 pandemic by stealing $250 million from a federal program that provides meals to low-income children.
MINNEAPOLIS — Federal authorities charged 47 people in Minnesota with conspiracy and other counts in what they said Tuesday was the largest fraud scheme yet to take advantage of the COVID-19 pandemic by stealing $250 million from a federal program that provides meals to low-income children.
Many of the companies that claimed to be serving food were sponsored by a nonprofit called Feeding Our Future, which submitted the companies' claims for reimbursement. Feeding Our Future’s founder and executive director, Aimee Bock, was among those indicted, and authorities say she and others in her organization submitted the fraudulent claims for reimbursement and received kickbacks.
Earlier this year, the U.S. Department of Justice made prosecuting pandemic-related fraud a priority. The department has already taken enforcement actions related to more than $8 billion in suspected pandemic fraud, including bringing charges in more than 1,000 criminal cases involving losses in excess of $1.1 billion.
The defendants in Minnesota face multiple counts, including conspiracy, wire fraud, money laundering and bribery. Luger said some of them were arrested Tuesday morning. But during the pandemic, some of the standard requirements for sites to participate in the federal food nutrition programs were waived. The USDA allowed for-profit restaurants to participate, and allowed food to be distributed outside educational programs. The charging documents say the defendants exploited such changes “to enrich themselves."
One example described a small storefront restaurant in Willmar, in west-central Minnesota, that typically served only a few dozen people a day. Two defendants offered the owner $40,000 a month to use his restaurant, then billed the government for some 1.6 million meals through 11 months of 2021, according to one indictment.
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