Fraud Trial Begins for Seven Accused of Stealing $40M from Minnesota Meal Program

A fraud trial is set to begin on Monday for seven people accused of stealing over $40 million from a program meant to provide meals to low-income children in Minnesota during the COVID-19 pandemic. The seven defendants will be the first of 70 total defendants to go on trial in the alleged scam, with 18 others having already pleaded guilty.

Federal prosecutors have called this a colossal scheme to exploit lax rules during the pandemic and steal from the meal program. The defendants are accused of producing invoices for meals that were never served, running shell companies, laundering money, and accepting kickbacks. Just a small fraction of the stolen funds went to feeding children, with the rest spent on luxury items.

The food aid came from the U.S. Department of Agriculture and was administered by the State Department of Education, with nonprofits and other partners supposed to provide meals to kids. Two of the groups involved, Feeding Our Future and Partners in Nutrition, grew significantly during the pandemic, disbursing around $200 million each in 2021.

The alleged fraud cost taxpayers $250 million and is one of the largest pandemic-related fraud cases in the country. Federal authorities have recovered about $50 million of the misappropriated funds so far.

Why this matters: This case highlights the vulnerability of government aid programs to fraud and abuse during times of crisis. It underscores the need for robust oversight and accountability measures to ensure funds reach their intended recipients.

The trial is expected to last around six weeks. The defendants, who have pleaded not guilty, face charges including conspiracy, wire fraud, money laundering, and bribery. The scandal has stirred up political debate in Minnesota, with Republicans criticizing the governor for not stopping the fraud earlier, while the governor says the state's hands were tied by a court order. "This trial is going to shed light on how this fraud happened and how we can prevent it from happening again," said U.S. Attorney Andrew Luger.

Key Takeaways

• 7 people accused of stealing $40M from pandemic child meal program in Minnesota.
• Defendants produced fake invoices, ran shell companies, and laundered money.
• Fraud cost taxpayers $250M, one of the largest pandemic-related fraud cases.
• Trial expected to shed light on how fraud occurred and how to prevent it.
• Scandal has stirred political debate in Minnesota over oversight and accountability.