WASHINGTON (TNND) — Federal prosecutors have already secured convictions tied to hundreds of millions of dollars in fraud involving Minnesota-administered programs. The most prominent case centers on the Feeding Our Future nonprofit, which operated under a federal pandemic meal program meant to provide food to children.
According to the U.S. Department of Justice, defendants in that case alone fraudulently siphoned approximately $250 million, making it the largest pandemic relief fraud scheme charged in U.S. history . More than 90 individuals have been charged, and at least 60 have been convicted.
The U.S. Attorney’s Office for Minnesota has also disclosed demographic data showing that approximately 89% of those charged in the Feeding Our Future case are Somali Americans, according to reporting from Associated Press.
Prosecutors estimate billions stolen
The much larger dollar estimates stem from an expanded federal probe that now reaches far beyond pandemic meal programs, according to reporting from the AP.
Federal investigators have identified 14 Minnesota-linked programs, including Medicaid-funded housing services and autism therapy for children, where providers allegedly billed for services that were never delivered . Prosecutors say this fraud was not isolated to just one program or case, but systemic within Minnesota.
Investigators have issued a preliminary estimate, not a finalized audit, suggesting that more than half of roughly $18 billion spent since 2018 across these programs may have been fraudulent. Officials stress that this figure remains under review and will ultimately be refined through court proceedings, audits, and restitution calculations.
How the Fraud Was Able to Persist
State audits now provide insight into how such large-scale fraud was able to continue for years.
A 2024 report from the Minnesota Office of the Legislative Auditor (OLA) concluded that the Feeding Our Future scandal was not merely the result of sophisticated criminals, but a systemic failure inside state agencies tasked with oversight . The report found that officials raised concerns and flagged irregularities early, particularly during the pandemic, yet continued approving payments.
The auditor described a department that was “ill-prepared” to manage the surge of pandemic funding and oversight responsibilities.
Why Payments Continued Despite Red Flags
The OLA report also documents internal explanations for why payments were not halted, even after concerns surfaced. According to the audit, state officials cited fears of lawsuits, accusations of racial discrimination, and negative public scrutiny if funding were denied .
Federal prosecutors say that hesitation created conditions where fraud was able to scale rapidly, unchecked. One U.S. attorney described the outcome as “industrial-scale fraud,” a characterization echoed in reporting by The New York Times .
What Happens Next
While hundreds of millions of dollars in fraud have already been confirmed through convictions, the broader investigation into Minnesota’s social services system is ongoing. Prosecutors continue to pursue additional charges, while auditors work to determine how much taxpayer money can be recovered.
What remains clear is this: the confirmed cases represent only a portion of what investigators believe occurred. The final accounting, whether it reaches into the billions, will ultimately be decided in court, based on evidence, audits, and judicial rulings still to come.
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