Seventy people in Minnesota have been indicted for a massive $250 million fraud that exploited a federally funded children’s nutrition program during the COVID-19 pandemic, the FBI announced.
The scam centered on the “Feeding Our Future” program, which reimbursed meal costs for children. According to the FBI, conspirators fabricated meal counts, created fake invoices, and used shell companies to siphon taxpayer dollars for personal luxuries.
“One of the Worst”
FBI Director Kash Patel called it “one of the worst” fraud schemes in Minnesota history.
“Stealing over $250 million from hungry kids during a pandemic to fund mansions and luxury cars is as shameless as it gets,” Patel said. “If you exploit the most vulnerable, we will find you and bring you to justice.”
Of the 70 indicted, 38 have already pleaded guilty. More than a dozen await trial, with the next scheduled for August 11.
How They Did It
The fraudsters took advantage of loosened restrictions during the pandemic.
The USDA had waived standard requirements for non-school food providers, allowing hundreds of so-called “distribution sites” across Minnesota to claim they were feeding children — when most were not.
Roughly 300 sites are named in court documents, many of which served little or no food at all. Fake vendors and nonprofit groups were created to launder the stolen funds.
More Charges Coming
FBI officials told Fox News the investigation is ongoing and more charges are expected.
“This was a betrayal of public trust,” said FBI special agent in charge Alvin Winston. “They misused federal funds meant to help children during a crisis, turning them into luxury homes, high-end cars, and lavish lifestyles.”
“We will dismantle their networks and ensure they face justice,” he added.
