A jury convicted five Minnesotans of stealing more than $40 million in COVID-19 pandemic funds under the guise that they were feeding kids in need. Seven defendants stood trial. However, two were acquitted on Friday, June 7.
“The defendants took advantage of the COVID-19 pandemic to defraud the state of Minnesota and to steal tens of millions of dollars,” Assistant U.S. Attorney Joe Thompson said. “This conduct was not just criminal, it was depraved and brazen.”
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The defense argued that their clients provided real meals to real kids. The food aid reportedly came from the United States Department of Agriculture and was administered to the state of Minnesota. The state gave the funds to nonprofit organizations and other partners.
As rules eased to speed up money for those in need, the defendants took advantage by producing fake invoices to funnel money into their own pockets.
Federal prosecutors said that only a fraction of the funds went to actual kids in need. The rest of the money was spent on luxury cars, jewelry, travel and property. The group’s ringleader was convicted of 23 of the 24 counts. The charges ranged from conspiracy, wire fraud, money laundering and bribery.
The seven defendants were the first of 70 people set to stand trial in what the feds have called one of the country’s largest pandemic-related frauds. It is estimated that more than $250 million in federal funds were taken from Minnesota alone. Authorities said that only about $50 million has been recovered.
The case garnered national attention after someone reportedly tried to bribe a juror with a bag filled with $120,000 in cash. That juror was dismissed before deliberations began. A second juror was dismissed from the trial after they heard about the alleged bribery. The FBI said that it is still investigating the case and has not made any arrests.
A trial date for the five people convicted in the first fraud case has yet to be set.
[LAUREN TAYLOR]
FIVE MINNESOTANS HAVE BEEN CONVICTED OF STEALING MORE THAN 40 MILLION DOLLARS IN COVID FUNDS UNDER THE GUISE OF FEEDING KIDS IN NEED.
[ JOE THOMPSON]
“THE DEFENDANTS TOOK ADVANTAGE OF THE COVID-19 PANDEMIC TO DEFRAUD THE STATE OF MINNESOTA AND TO STEAL TENS OF MILLIONS OF DOLLARS. THIS CONDUCT WAS NOT JUST CRIMINAL, IT WAS DEPRAVED AND BRAZEN.”
[LAUREN TAYLOR]
THE DEFENSE ARGUED THEIR CLIENTS PROVIDED REAL MEALS TO REAL KIDS.
THE FOOD AID CAME FROM THE U-S-D-A AND WAS ADMINISTERED BY MINNESOTA.
THE STATE GAVE THE MONEY TO NONPROFIT ORGANIZATIONS AND OTHER PARTNERS.
AS RULES BECAME LAX TO SPEED-UP HELP TO THE NEEDY– THE DEFENDANTS TOOK ADVANTAGE. PRODUCING FAKE INVOICES TO FUNNEL MONEY TO THEIR OWN POCKETS.
FEDERAL PROSECUTORS SAY ONLY A FRACTION OF THE FUNDS WENT TO ACTUAL KIDS IN NEED.
THE REST WAS SPENT ON LUXURY CARS, JEWELRY, TRAVEL AND PROPERTY.
THE GROUP’S RINGLEADER WAS CONVICTED ON 23 OF 24 COUNTS. THE CHARGES RANGED FROM CONSPIRACY, WIRE FRAUD, MONEY LAUNDERING AND BRIBERY.
THESE WERE THE FIRST OF 70 SET TO STAND TRIAL IN WHAT THE FEDS HAVE CALLED ONE OF COUNTRY’S LARGEST PANDEMIC-RELATED FRAUDS.
IT’S ESTIMATED MORE THAN 250 MILLION DOLLARS IN FEDERAL FUNDS WERE TAKEN FROM MINNESOTA ALONE. AUTHORITIES SAY ONLY ABOUT 50 MILLION HAS BEEN RECOVERED.
A SENTENCING DATE HAS YET TO BE SET.
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