DOJ charges nonprofit with $250 million pandemic fraud scheme
The Justice Department announced Tuesday that 47 people are being charged with stealing $250 million from a federal program meant to provide food for children in need during the pandemic, CNN reports.
The DOJ is calling this the largest COVID-19 related fraud scheme that investigators have discovered. CNN reports that the suspects are facing conspiracy charges, wire fraud, money laundering, and paying/receiving illegal kickbacks.
Prosecutors said that the defendants created a network of shell companies associated with the Minnesota-based nonprofit organization Feeding Our Future to steal funds from the program designed to provide low-income families with food for their children. The program had been expanded to meet the community's needs during the pandemic, which opened the doors for more organizations to participate.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota," the DOJ said in a news 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."
Feeding Our Future submitted its claims to the Minnesota Department of Education, despite being aware that their submission was fraudulent. US Attorney Andrew M. Luger for the District of Minnesota called their actions "a brazen scheme of staggering proportions." He alleged that the defendants stole "more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewelry, and coastal resort property abroad," per CNN.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Theara Coleman has worked as a staff writer at The Week since September 2022. She frequently writes about technology, education, literature and general news. She was previously a contributing writer and assistant editor at Honeysuckle Magazine, where she covered racial politics and cannabis industry news.
-
Peter Florence shares books that spark debate
The Week Recommends Co-founder of Hay Festival chooses works by Robert Macfarlane, Marion Turner and others
By The Week UK Published
-
Dora Carrington: Beyond Bloomsbury – a 'fascinating' exhibition
The Week Recommends First major retrospective in almost 30 years brings together a 'marvellously diverse' selection of works
By The Week UK Published
-
The week's best photos
In Pictures A silent protest, a record-breaking celebration, and more
By Anahi Valenzuela, The Week US Published
-
White House withdraws Trump's spending freeze
Speed Read President Donald Trump's budget office has rescinded a directive that froze trillions of dollars in federal aid and sowed bipartisan chaos
By Peter Weber, The Week US Published
-
OpenAI announces ChatGPT Gov for government use
Speed Read The artificial intelligence research company has launched a new version of its chatbot tailored for the US government
By Rafi Schwartz, The Week US Published
-
Caroline Kennedy urges Senate to reject RFK Jr.
Speed Read Robert F. Kennedy Jr.'s cousin said he should not become President Donald Trump's health secretary, calling his medical views 'dangerous'
By Peter Weber, The Week US Published
-
GOP senator reneged on voting against Hegseth
Speed Read North Carolina senator Thom Tillis provided the deciding vote to confirm Pete Hegseth as defense secretary
By Peter Weber, The Week US Published
-
Trump sparks chaos with spending, aid freezes
Speed Read A sudden freeze on federal grants and loans by President Donald Trump's administration has created widespread confusion
By Rafi Schwartz, The Week US Published
-
Trump feuds with Colombia on deportee flights
Speed Read Colombia has backed off from a trade war with the U.S., reaching an agreement on accepting deported migrants following tariff threats from President Donald Trump
By Peter Weber, The Week US Published
-
Trump proposal to 'clean out' Gaza gets cool reception
Speed Read U.S. allies Jordan and Egypt rejected President Donald Trump's suggestion that Palestinians leave Gaza
By Peter Weber, The Week US Published
-
Trump orders release of JFK, RFK, MLK Jr. files
Speed Read The president signed an executive order to release classified documents related to the assassinations of John F. Kennedy, Robert F. Kennedy and Martin Luther King Jr.
By Peter Weber, The Week US Published