7 Minnesotans accused in massive scheme to defraud pandemic food program to stand trial

MINNEAPOLIS -- Opening statements are expected Monday successful the fraud proceedings of 7 radical charged successful what national prosecutors person called a monolithic strategy to exploit lax rules during the COVID-19 pandemic and bargain from a programme meant to supply meals to children successful Minnesota.

The 7 volition beryllium the archetypal of 70 defendants to spell connected proceedings successful the alleged scam. Eighteen others person already pleaded guilty.

Prosecutors person said the 7 collectively stole implicit $40 cardinal successful a conspiracy that outgo taxpayers $250 cardinal — 1 of the largest pandemic-related fraud cases successful the country. Federal authorities accidental they person recovered astir $50 million.

Prosecutors accidental conscionable a fraction of the wealth went to provender low-income kids, and that the remainder was spent connected luxury cars, jewelry, question and property.

The nutrient assistance came from the U.S. Department of Agriculture and was administered by the authorities Department of Education. Nonprofits and different partners nether the programme were expected to service meals to kids.

Two of the groups involved, Feeding Our Future and Partners successful Nutrition, were tiny nonprofits earlier the 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.

An Associated Press investigation published past June documented however thieves crossed the state plundered billions successful national COVID-19 alleviation dollars successful the top grift successful U.S. history. The wealth was meant to combat the worst pandemic successful a period and stabilize an system successful freefall.

But the AP recovered that fraudsters perchance stole much than $280 billion, portion different $123 cardinal was wasted oregon misspent. Combined, the nonaccomplishment represented 10% of the $4.3 trillion the authorities disbursed successful COVID alleviation by past fall. Nearly 3,200 defendants person been charged, according to the U.S. Justice Department. About $1.4 cardinal successful stolen pandemic assistance has been seized.

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.

“The defendants’ fraud, similar an assertive cancer, dispersed and grew,” prosecutors wrote successful a summary of their case.

Prosecutors accidental galore of the purported feeding sites were thing much than parking tons and derelict commercialized spaces. Others turned retired to beryllium metropolis parks, flat complexes and assemblage centers.

"By the clip the defendants’ strategy was exposed successful aboriginal 2022, they collectively claimed to person served implicit 18 cardinal meals from 50 unsocial locations for which they fraudulently sought reimbursement of $49 cardinal from the Federal Child Nutrition Program,” prosecutors wrote.

Among the defendants awaiting proceedings is Aimee Bock, the laminitis of Feeding our Future. She's 1 of 14 defendants expected to look proceedings unneurotic astatine a aboriginal date. Bock has maintained her innocence, saying she ne'er stole and saw nary grounds of fraud among her subcontractors.

The ungraded stirred up the 2022 legislative league and run successful Minnesota.

Republicans attacked Gov. Tim Walz, saying helium should person stopped the fraud earlier. But Walz pushed back, saying the state’s hands were tied by a tribunal bid successful a suit by Feeding Our Future to resume payments contempt its concerns. He said the FBI asked the authorities to proceed the payments portion the probe continued.

The Minnesota Department of Education present has an autarkic inspector wide who is amended empowered to analyse fraud and waste.