US: Group accused of embezzling $250 million in action for underprivileged children

The US Department of Justice has announced indictments against 47 people accused of stealing $250 million from a federal program designed to provide meals to underprivileged children during the pandemic.

According to the department, the scheme is the largest Covid-19-related fraud uncovered by investigators to date. Defendants are facing a range of charges, including conspiracy, wire fraud, money laundering and illegal payment and receipt of kickbacks.

Defendants, prosecutors said, created a network of shell companies connected to the Minnesota-based nonprofit “Feeding our Future” to exploit the federal infant nutrition program, designed to provide meals to children in families. low-income. The program was expanded by Congress at the start of the pandemic to allow more organizations to participate.

“This was a brazen scheme of staggering proportions,” said US Attorney Andrew M. Luger for the District of Minnesota. “These defendants explored a program designed to provide nutritious food to children in need during the Covid-19 pandemic. Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to buy luxury cars, homes, jewelry and coastal property overseas.”

The defendants claimed to be feeding thousands of children a day, according to prosecutors. To maintain the plan, the defendants allegedly presented false invoices for food served to the children and lists of false names to show who was fed.

According to prosecutors, the defendants used the proceeds of the scheme to buy real estate in Minnesota, Kenya and Turkey, luxury cars, jewelry, to finance international travel and more.