Africa-Press – Kenya. Kenyans are among 47 people charged for alleged roles in a Sh30 billion ($250 million) fraud scheme that exploited a federally-funded child nutrition program during the Covid-19 pandemic.
The US Attorney’s Office for the District of Minnesota on September 20, announced federal criminal charges against the 47 defendants in the case.
In one case, eight defendants are charged with conspiracy, wire fraud, federal programs bribery, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme.
In April 2020, Empire Cuisine and Market LLC enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A.
The owners of Empire Cuisine and Market LLC and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals.
Based on their fraudulent claims, the defendants received more than Sh4.8 billion ($40 million) in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, travel, real estate, and property in Kenya.
“These indictments, alleging the largest pandemic relief fraud scheme charged to date, underscore the Department of Justice’s sustained commitment to combating pandemic fraud and holding accountable those who perpetrate it,” Attorney General Merrick B. Garland said.
“In partnership with agencies across government, the Justice Department will continue to bring to justice those who have exploited the pandemic for personal gain and stolen from American taxpayers.”
The defendants are accused of exploiting a program designed to provide nutritious food to needy children during the Covid-19 pandemic.
The 47 are charged across six separate indictments and three criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery.
“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,” FBI Director Christopher Wray said.
“Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewellery, and coastal resort property abroad. I commend the work of the skilled investigators and prosecutors who unraveled the lies, deception, and mountains of false documentation to bring this complex case to light.”
A statement said the defendants obtained, misappropriated, and laundered millions of dollars in program funds intended as reimbursements for the cost of serving meals to children.
Rather than feed children, they enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds.
The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally-funded program designed to provide free meals to children in need.
USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments.
In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program.
Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorised sponsoring organisation.
Sponsors must submit an application to MDE for each site and are also responsible for monitoring each of their sites and preparing reimbursement claims for the sites.
During the pandemic, USDA waived some of the standard requirements for participation in the FCNP.
USDA also allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs.
According to the statement, to carry out the scheme, the defendants also created and submitted false documentation.
They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site.
The defendants submitted false invoices purporting to document the purchase of food to be served to children at the sites.
They also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day.
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