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                                                                                                 U.S. NEWS Wednesday 21 september 2022
            Feds: 47 exploited pandemic to steal $250M from food program




            By AMY FORLITI               ic fraud, including bringing   themselves."
            Associated Press             charges in more than 1,000   The  documents  say  Bock
            MINNEAPOLIS  (AP)  —  Fed-   criminal  cases  involving   oversaw  the  scheme  and
            eral  authorities  charged  losses  in  excess  of  $1.1  bil-  that  she  and  Feeding  Our
            47  people  in  Minnesota  lion.                          Future sponsored the open-
            with  conspiracy  and  other  Federal  officials  repeat-  ing  of  nearly  200  federal
            counts  in  what  they  said  edly described the alleged   child nutrition program sites
            Tuesday  was  the  largest  fraud as "brazen," and de-    throughout the state, know-
            fraud  scheme  yet  to  take  cried  that  it  involved  a   ing  that  the  sites  intended
            advantage  of  the  COV-     program intended to feed     to submit fraudulent claims.
            ID-19  pandemic  by  steal-  children who needed help     "The    sites   fraudulently
            ing $250 million from a fed-  during  the  pandemic.  Mi-  claimed  to  be  serving
            eral program that provides  chael  Paul,  special  agent   meals to thousands of chil-
            meals  to  low-income  chil-  in charge of the Minneapo-  dren a day within just days
            dren.                        lis FBI office, called it "an as-  or  weeks  of  being  formed
            Prosecutors say the defen-   tonishing display of deceit."   and  despite  having  few,   Aimee Bock, the executive director of the nonprofit Feeding Our
            dants  created  companies  Luger said the government      if  any  staff  and  little  to  no   Future, speaks, Thursday, Jan. 27, 2022 in St. Anthony, Minn.
            that  claimed  to  be  offer-  was  billed  for  more  than   experience serving this vol-                                      Associated Press
            ing  food  to  tens  of  thou-  125 million fake meals, with   ume  of  meals,"  according
            sands  of  children  across  some  defendants  making     to the indictments.          dants  offered  the  owner  listed the names of around
            Minnesota,  then  sought  up  names  for  children  by    One example described a  $40,000 a month to use his  2,000 children — nearly half
            reimbursement  for  those  using  an  online  random      small  storefront  restaurant  restaurant,  then  billed  the  of the local school district's
            meals through the U.S. De-   name  generator.  He  dis-   in  Willmar,  in  west-central  government  for  some  1.6  total  enrollment  —  and
            partment  of  Agriculture's  played  one  form  for  reim-  Minnesota,  that  typically  million  meals  through  11  only  33  names  matched
            food  nutrition  programs.  bursement  that  claimed      served  only  a  few  dozen  months  of  2021,  accord-   actual students, the indict-
            Prosecutors  say  few  meals  a site served exactly 2,500   people a day. Two defen-   ing to one indictment. They  ment said.q
            were  actually  served,  and  meals  each  day  Monday
            the  defendants  used  the  through  Friday  —  with  no
            money  to  buy  luxury  cars,  children ever getting sick or
            property and jewelry.        otherwise  missing  from  the
            "This $250 million is the floor,"  program.
            Andy Luger, the U.S. attor-  "These children were simply
            ney  for  Minnesota,  said  at  invented," Luger said.
            a  news  conference.  "Our  He  said  the  government
            investigation continues."    has  so  far  recovered  $50
            Many  of  the  companies  million in money and prop-
            that claimed to be serving  erty and expects to recov-
            food were sponsored by a  er more.
            nonprofit  called  Feeding  The  defendants  in  Minne-
            Our  Future,  which  submit-  sota  face  multiple  counts,
            ted the companies' claims  including  conspiracy,  wire
            for  reimbursement.  Feed-   fraud,  money  laundering
            ing  Our  Future's  founder  and  bribery.  Luger  said
            and  executive  director,  some of them were arrest-
            Aimee  Bock,  was  among  ed Tuesday morning.
            those indicted, and author-  According  to  court  docu-
            ities  say  she  and  others  in  ments, the alleged scheme
            her organization submitted  targeted the USDA's feder-
            the fraudulent claims for re-  al child nutrition programs,
            imbursement and received  which  provide  food  to
            kickbacks.                   low-income  children  and
            Bock's  attorney,  Kenneth  adults.  In  Minnesota,  the
            Udoibok,  said  the  indict-  funds   are   administered
            ment "doesn't indicate guilt  by  the  state  Department
            or  innocence."  He  said  he  of  Education,  and  meals
            wouldn't  comment  further  have historically been pro-
            until seeing the indictment.  vided to kids through edu-
            In  interviews  after  law  en-  cational programs, such as
            forcement searched multi-    schools or day care centers.
            ple sites in January, includ-  But  during  the  pandemic,
            ing  Bock's  home  and  of-  some  of  the  standard  re-
            fices, Bock denied stealing  quirements for sites to par-
            money and said she never  ticipate in the federal food
            saw evidence of fraud.       nutrition  programs  were
            Earlier this year, the U.S. De-  waived. The USDA allowed
            partment  of  Justice  made  for-profit restaurants to par-
            prosecuting     pandemic-    ticipate, and allowed food
            related fraud a priority. The  to  be  distributed  outside
            department  has  already  educational programs. The
            taken enforcement actions  charging  documents  say
            related to more than $8 bil-  the  defendants  exploited
            lion in suspected pandem-    such  changes  "to  enrich
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