Trial for ‘largest COVID-19 fraud scheme’ begins. How $250M was stolen from hungry kids
Seven people accused in the “largest COVID-19 fraud scheme” faced a judge Monday after pleading not guilty to stealing $40 million from a federal program designed to feed hungry children in Minnesota during the pandemic, federal officials said.
Prosecutors say $250 million was stolen in total as the Minnesota defendants “exploited” the Federal Child Nutrition Program, claiming they were feeding thousands of children each day by falsifying documents.
“These defendants exploited a program designed to provide nutritious food to needy children during the COVID-19 pandemic. Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewelry, and coastal resort property abroad,” U.S. Attorney Andrew M. Luger said in a September 2022 news release.
Since September 2022, 70 people have been indicted, according to the U.S. Attorney’s office. At least 18 have pleaded guilty.
Seven stand trial
Opening statements began at 9 am. April 29 in Minnesota, court records show.
Abdiaziz Shafii Farah, Mohamed Jama Ismail, Abdimajid Mohamed Nur, Said Shafii Farah, Abdiwahab Maalim Aftin, Mukhtar Mohamed Shariff and Hayat Mohamed Nur were indicted in September 2022 on charges including wire fraud and money laundering, according to a news release.
In April 2020, Empire Cuisine and Market LLC signed up for the Federal Child Nutrition Program, which was sponsored by Feeding Our Future, the Minnesota-based nonprofit at the center of the multi-million dollar scheme, prosecutors said.
The federally-funded program was designed to provide free meals to children in need nationwide, according to the indictment.
The defendants lied, saying they served “millions of meals” to hungry children in Minnesota and subsequently received over $40 million from the Federal Child Nutrition Program. Prosecutors say those funds were used for real estate, travel and vehicles.
The trial is expected to last six weeks, according to an attorney representing one of the defendants.
Shariff’s attorney declined to comment on the case. Attorneys for the remaining defendants did not immediately respond to McClatchy News’ request for comment.
The $250 million scheme
At the center of this case is Feeding Our Future, which was responsible for overseeing the sites distributing meals to children and managing federal reimbursements delegated by the Minnesota Department of Education, according to prosecutors.
Aimee Bock, founder and executive director of this nonprofit, is accused of overseeing the scheme that defrauded millions from the Federal Child Nutrition Program.
Bock’s attorney did not immediately respond to McClatchy News’ request for comment.
Guidelines surrounding the program were less strict during the pandemic, allowing for-profit businesses to participate, prosecutors said.
Many of the 70 people accused operated some of the sites across the state and “fraudulently claimed to be serving meals to thousands of children a day,” according to prosecutors. Federal dollars were often laundered to shell companies created by the defendants, prosecutors said.
“They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site,” prosecutors previously said.
Feeding Our Future employees would also take bribes from companies the nonprofit sponsored, according to prosecutors, and about $18 million was paid to the shell companies as “administrative fees.”
“Exploiting a government program intended to feed children at the time of a national crisis is the epitome of greed,” IRS Criminal Investigation Special Agent in Charge Justin Campbell said in 2022.
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