DOJ charges 47 people with stealing $250 million from pandemic program meant to provide meals to needy children | CNN Politics

Posted 4 days ago

From WWW.CNN.COM

CNN — The Justice Department on Tuesday announced charges against 47 people accused of stealing $250 million from a federal program designed to provide meals for needy children during the pandemic.

According to the department, the scheme is the largest Covid-19-related fraud uncovered by investigators to date. The defendants are facing a range of charges, including conspiracy, wire fraud, money laundering, and paying and receiving illegal kickbacks.

The defendants, prosecutors said, set up a network of shell companies connected to the Minnesota-based nonprofit Feeding our Future, to exploit the federal child nutrition program, which is designed to provide meals to children from low-income families. The program was expanded by Congress at the start of the pandemic to allow more organizations to participate.

“Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota,” the Justice Department said in a release. “These sites, created and operated by the defendants and others, fraudulently claimed to be serving meals to thousands of children a day within just days or weeks of being formed.”

The Department of Justice alleges that despite Feeding Our Future’s knowledge of their own fraudulent claims, they still submitted them to the Minnesota Department of Education, which administered and oversaw the federal program for the state.

“This was a brazen scheme of staggering proportions,” said US Attorney Andrew M. Luger for the District of Minnesota. “These defendants exploited a program designed to provide nutritious food to needy children during the COVID-19 pandemic. Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewelry, and coastal resort property abroad.”

“The company went from receiving and disbursing approximately $3.4 million in federal funds to sites under its sponsorship in 2019 to nearly $200 million in 2021,” part of the indictment read. “In all, Feeding Our Future fraudulently obtained and disbursed more than $240 million in Federal Child Nutrition Program funds during the Covid-19 pandemic,” it continued...(Read more)