This article is from the source 'guardian' and was first published or seen on . The next check for changes will be
You can find the current article at its original source at https://www.theguardian.com/us-news/2024/apr/29/covid-scam-minnesota-trial
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
First seven of 70 defendants in alleged $250m Covid relief funds scam go to trial | First seven of 70 defendants in alleged $250m Covid relief funds scam go to trial |
(about 2 hours later) | |
Prosecutors say the seven stole more than $40m from a program meant to provide meals to children in Minnesota | Prosecutors say the seven stole more than $40m from a program meant to provide meals to children in Minnesota |
Opening statements are expected on Monday in the fraud trial of seven people charged in what federal prosecutors have called a massive scheme to exploit lax rules during the Covid-19 pandemic and steal from a program meant to provide meals to children in Minnesota. | Opening statements are expected on Monday in the fraud trial of seven people charged in what federal prosecutors have called a massive scheme to exploit lax rules during the Covid-19 pandemic and steal from a program meant to provide meals to children in Minnesota. |
The seven will be the first of 70 defendants to go on trial in the alleged scam. Eighteen others have already pleaded guilty. | The seven will be the first of 70 defendants to go on trial in the alleged scam. Eighteen others have already pleaded guilty. |
Prosecutors have said the seven collectively stole more than $40m in a conspiracy that cost taxpayers $250m – one of the largest pandemic-related fraud cases in the country. Federal authorities say they have recovered about $50m. | Prosecutors have said the seven collectively stole more than $40m in a conspiracy that cost taxpayers $250m – one of the largest pandemic-related fraud cases in the country. Federal authorities say they have recovered about $50m. |
Prosecutors say just a fraction of the money went to feed low-income kids – and that the rest was spent on luxury cars, jewelry, travel and property. | Prosecutors say just a fraction of the money went to feed low-income kids – and that the rest was spent on luxury cars, jewelry, travel and property. |
The food aid came from the US Department of Agriculture and was administered by the state department of education. Non-profits and other partners under the program were supposed to serve meals to kids. | The food aid came from the US Department of Agriculture and was administered by the state department of education. Non-profits and other partners under the program were supposed to serve meals to kids. |
Two of the groups involved, Feeding Our Future and Partners in Nutrition, were small non-profits before the pandemic; but in 2021, they disbursed around $200m each. Prosecutors allege they produced invoices for meals that were never served, ran shell companies, laundered money, indulged in passport fraud and accepted kickbacks. | Two of the groups involved, Feeding Our Future and Partners in Nutrition, were small non-profits before the pandemic; but in 2021, they disbursed around $200m each. Prosecutors allege they produced invoices for meals that were never served, ran shell companies, laundered money, indulged in passport fraud and accepted kickbacks. |
An Associated Press analysis published last June documented how thieves across the country plundered billions in federal Covid-19 relief dollars in the biggest grift in US history. The money was meant to fight the worst pandemic in a century and stabilize an economy in freefall. | An Associated Press analysis published last June documented how thieves across the country plundered billions in federal Covid-19 relief dollars in the biggest grift in US history. The money was meant to fight the worst pandemic in a century and stabilize an economy in freefall. |
But the AP found that fraudsters potentially stole more than $280bn, while another $123bn was wasted or misspent. Combined, the loss represented 10% of the $4.3tn the government disbursed in Covid relief by last fall. Nearly 3,200 defendants have been charged, according to the US justice department. About $1.4bn in stolen pandemic aid has been seized. | But the AP found that fraudsters potentially stole more than $280bn, while another $123bn was wasted or misspent. Combined, the loss represented 10% of the $4.3tn the government disbursed in Covid relief by last fall. Nearly 3,200 defendants have been charged, according to the US justice department. About $1.4bn in stolen pandemic aid has been seized. |
The defendants going on trial on Monday before the US district judge Nancy Brasel in 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 have all pleaded not guilty. Their trial is expected to last about six weeks. | |
“The defendants’ fraud, like an aggressive cancer, spread and grew,” prosecutors wrote in a summary of their case. | “The defendants’ fraud, like an aggressive cancer, spread and grew,” prosecutors wrote in a summary of their case. |
Prosecutors say many of the purported feeding sites were nothing more than parking lots and derelict commercial spaces. Others turned out to be city parks, apartment complexes and community centers. | Prosecutors say many of the purported feeding sites were nothing more than parking lots and derelict commercial spaces. Others turned out to be city parks, apartment complexes and community centers. |
“By the time the defendants’ scheme was exposed in early 2022, they collectively claimed to have served over 18m meals from 50 unique locations for which they fraudulently sought reimbursement of $49m from the Federal Child Nutrition Program,” prosecutors wrote. | “By the time the defendants’ scheme was exposed in early 2022, they collectively claimed to have served over 18m meals from 50 unique locations for which they fraudulently sought reimbursement of $49m from the Federal Child Nutrition Program,” prosecutors wrote. |
Among the defendants awaiting trial is Aimee Bock, the founder of Feeding our Future. She is one of 14 defendants expected to face trial together at a later date. Bock has maintained her innocence, saying she never stole and saw no evidence of fraud among her subcontractors. | Among the defendants awaiting trial is Aimee Bock, the founder of Feeding our Future. She is one of 14 defendants expected to face trial together at a later date. Bock has maintained her innocence, saying she never stole and saw no evidence of fraud among her subcontractors. |
The scandal stirred up the 2022 legislative session and campaign in Minnesota. | The scandal stirred up the 2022 legislative session and campaign in Minnesota. |
Republicans attacked the governor, Tim Walz, saying he should have stopped the fraud earlier. But Walz pushed back, saying the state’s hands were tied by a court order in a lawsuit by Feeding Our Future to resume payments despite its concerns. He said the FBI asked the state to continue the payments while the investigation continued. | Republicans attacked the governor, Tim Walz, saying he should have stopped the fraud earlier. But Walz pushed back, saying the state’s hands were tied by a court order in a lawsuit by Feeding Our Future to resume payments despite its concerns. He said the FBI asked the state to continue the payments while the investigation continued. |
The Minnesota education department now has an independent inspector general who is better empowered to investigate fraud and waste. | The Minnesota education department now has an independent inspector general who is better empowered to investigate fraud and waste. |
Previous version
1
Next version