Source: US FBI
During a news conference announcing the charges, FBI Special Agent in Charge Michael Paul said that the FBI’s forensic accountants played a key role in untangling the scheme.
“During this investigation, the FBI followed many trails—including both money trails and paper trails—filled with falsified invoices and receipts, fictitious names, and an inconceivable number of meals allegedly served, all representing an astonishing display of deceit and evidence of outright fraud,” he stated.
Although the 18-month long investigation was extremely complex, Paul said the crime was quite simple: “It was just a massive fraud scheme.”
To date, the FBI and its law enforcement partners have conducted more than 100 search warrants, completed an additional 100 seizure warrants, and reviewed more than 1,000 bank accounts. U.S. Attorney Andrew Lugar announced that the government so far has been able to recover $50 million from 60 bank accounts, 45 pieces of property, and numerous vehicles and additional items, such as electronics and high-end clothing. Additional seizures are expected.
“These indictments describe an egregious plot to steal public funds meant to care for children in need in what amounts to the largest pandemic relief fraud scheme yet,” said FBI Director Christopher Wray. “The defendants went to great lengths to exploit a program designed to feed underserved children in Minnesota amidst the COVID-19 pandemic, fraudulently diverting millions of dollars designated for the program for their own personal gain. These charges send the message that the FBI and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
If you think you are a victim of a scam or attempted fraud involving COVID-19, call the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or fill out the NCDF Web Complaint Form.