Feeding our Future: DOJ charges 47 people with stealing $250 million from pandemic program meant to provide meals to needy children & More Latest News



CNN
 — 

The Justice Department on Tuesday introduced charges in opposition to 47 people accused of stealing $250 million from a federal program designed to provide meals for needy children through the pandemic.

According to the division, the scheme is the biggest Covid-19-related fraud uncovered by investigators to date. The defendants are going through a variety of charges, together with conspiracy, wire fraud, cash laundering, and paying and receiving unlawful kickbacks.

The defendants, prosecutors mentioned, arrange a community of shell corporations linked to the Minnesota-based nonprofit Feeding our Future, to exploit the federal youngster vitamin program, which is designed to provide meals to children from low-income households. The program was expanded by Congress initially of the pandemic to enable extra organizations to take part.

“Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota,” the Justice Department mentioned in a launch. “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 offices of Feeding Our Future are shown Thursday, January 27, 2022, in St. Anthony, Minnesota, a week after FBI agents raided the offices of the nonprofit.

The Department of Justice alleges that regardless of Feeding Our Future’s information of their very own fraudulent claims, they nonetheless 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,” mentioned 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,” a part of the indictment learn. “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.

The defendants claimed to be feeding hundreds of children per day, prosecutors mentioned. To sustain the ruse, the defendants allegedly submitted false invoices for meals served to the children and lists of pretend names to present who was fed.

Additionally, the Minnesota Department of Education was given “false assurances” that Feeding Our Future was serving the meals as claimed after the division “attempted to perform necessary oversight regarding the number of sites and amount of claims being submitted,” in accordance to the DOJ.

According to prosecutors, the defendants used the proceeds of the scheme to purchase actual property in Minnesota, Kenya and Turkey, luxurious automobiles, jewellery, to fund worldwide journey, and extra.

Speaking at a information convention Tuesday, Luger mentioned an unspecified variety of people had been arrested within the morning, however some defendants are usually not presently within the US.

This story has been up to date with further particulars.



 

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