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MN fraudsters blew taxpayer cash on luxuries out of reach for most Americans, feds say

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MN fraudsters blew taxpayer cash on luxuries out of reach for most Americans, feds say

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President Donald Trump and congressional allies are probing Minnesota’s sprawling “Feeding Our Future” fraud scheme and pressing federal agencies to recover millions in stolen taxpayer dollars, including funds that were used by convicted individuals in the scheme to finance purchases of luxury vehicles and homes that are out of reach for most Americans.

Republicans say the renewed investigations are necessary because, despite dozens of convictions, federal officials are still working to recover only a fraction of the stolen money — a process that has uncovered not only the high-end vehicles and homes but also designer goods, and large amounts of cash tied to the scheme. 

Meanwhile, city officials in Minneapolis are bracing for an influx of Immigration and Customs Enforcement (ICE) agents after the agency announced plans for a new operation in the state.

At issue is a $250 million fraud scheme that exploited a children’s nutrition program funded by the U.S. Department of Agriculture and overseen by the state of Minnesota during the COVID-19 pandemic, with the stated goal of providing food to school-aged children. 

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The scheme exploited the U.S. Department of Agriculture’s decision to waive many of its standard requirements for the Federal Child Nutrition Program during the pandemic, including relaxing its requirement for non-school-based distributors to participate in the program.

WHAT TO KNOW ABOUT MINNESOTA’S ‘FEEDING OUR FUTURE’ FRAUD AT THE CENTER OF TRUMP’S LATEST CRACKDOWN

FBI Director Kash Patel described the scheme in July as “one of the worst” in Minnesota history. (Getty Images)

Conspirators charged in the scheme falsely claimed to have served millions of meals to children during the pandemic, but instead used the money for personal gain, according to FBI and federal court documents reviewed by Fox News Digital.

They are also accused of fabricating invoices, submitting fake records, and falsely claiming to have handed out thousands of meals to children across hundreds of food distribution “sites” across the state — when many, in fact, had provided none at all. 

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At least 77 individuals in Minnesota have been indicted as part of the fraud scheme, as Fox News Digital previously reported, and it is believed to be the largest pandemic-era scheme in U.S. history.

According to FBI and court documents reviewed by Fox News Digital, many of the convicted fraudsters exploited the taxpayer fund to live lavishly — purchasing real estate, pricey vehicles and houses, and seeking to funnel additional funding into more fraudulent schemes to further exploit the government. 

One defendant, Abdiaziz Farah, was sentenced to 28 years in federal prison earlier this  year for his role in the Feeding Our Future scheme. 

According to FBI exhibits and court documents reviewed by Fox News Digital, Farah used his role as a co-owner of Empire Cuisine and Market to exploit the COVID-era nutrition program for millions of dollars in personal gain, which he used to purchase commercial property and real estate, including two lakefront lots, “with the aim of building himself a multi-million-dollar home.” 

FBI documents submitted to the court paint a picture of the goods that were seized — among them, six Rolex watches, cars, thousands of dollars in luxury clothing, designer purses,  and more. 

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Other funds were funneled abroad, a strategy that appears to have been by multiple fraudsters convicted in the case. 

“Farah further sent the taxpayer money he stole overseas, purchasing real estate in Kenya and a high-rise apartment building in Nairobi,” Justice Department officials said. “Farah laundered the fraud proceeds through China.  This overseas money is beyond the reach of American law enforcement—neither these funds nor Farah’s international real estate holdings have been, or can be, seized or forfeited.”

The federal judge overseeing the case described his fraud as “breathtakingly elaborate,” and said at the time of his conviction that he acted out of “pure unmitigated greed.”

Farah, she noted, had come to the U.S. as a refugee as a child and had received many opportunities from public agencies and nonprofits, including housing, a grant for full college tuition, and a former job in the public sector. “Given that background, it is ironic at best that, as the government aimed no child went hungry during the pandemic, you saw the opportunity to fraudulently make money,” she said after his conviction. 

Court documents, photos, and testimony provided at the trials have provided a window into the luxurious lifestyles many of the fraudsters had been leading as a result of the scheme.

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Federal authorities seized $64,000 in cash, gold jewelry purchased in Dubai, and four vehicles — including a brand-new Tesla and a Porsche — from one defendant’s home. 

Five individuals were separately convicted last year of attempting to bribe a juror with $120,000 cash in exchange for returning a “not guilty” verdict for one of the defendants. 

PATEL TOUTS FBI’S DOZENS OF CONVICTIONS IN $250 MILLION MINNESOTA COVID SCAM

Kash Patel appears before the Senate Judiciary Committee for his confirmation hearing as FBI director. (Ben Curtis/AP)

Others convicted are accused of having funneled money abroad into shell corporations, while at least some others appear to have spent the money to pay down their own credit card bills, or otherwise fund their “lavish lifestyles,” according to information provided by the Justice Department.

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In the case of Abdimajid Mohamed Nur, a defendant who was ordered to pay $48 million in restitution for his crimes, many of the stolen funds were sent to a shell company.

Nur is believed to have spent the bulk of the $900,000 in fraud proceeds not sent to the shell company on himself, to fund the purchase of new vehicles, fund a honeymoon trip to the Maldives, and in purchasing jewelry.

Treasury Secretary Scott Bessent said in an interview on CBS News’s “Face the Nation” Sunday that “a lot of money has been transferred from the individuals who committed this fraud.”

Much of the fraudsters’ proceed have “gone overseas,” he told host Margaret Brennan, “and we are tracking that both to the Middle East and to Somalia to see what the uses of that have been” as part of the Trump administration’s broader investigation into the funding that was sent abroad.

But the efforts to trace, let alone recover, many of the stolen funds have proved to be a bit slow-going. 

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To date, federal officials have recovered an estimated $60 million in funding that was stolen as part of the “Feeding Our Futures” scheme, according to estimates provided by the U.S. Attorney’s Office in the state — less than half of the $250 million in stolen funds.

The slow recovery effort is not for lack of trying. Last month, a federal judge in the state ordered one defendant to pay $48 million in restitution funds, in addition to a 10-year prison sentence he received as part of his role in the sprawling fraud effort.

Other individuals convicted have also been ordered to refund the government millions of dollars to recoup the stolen taxpayer funds.

Still, the process can be complex and difficult. That’s because recovering the stolen funds often involves tracing them to how they were spent — including U.S. properties and vehicles, and then seizing those items for forfeiture — which can contribute to the delay.

In some cases, individuals who were convicted of the crimes actually have family members still living in the homes they are accused of purchasing with the stolen funds.

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FBI Director Kash Patel described the scheme in July as “one of the worst” in Minnesota history. 

“These individuals misappropriated hundreds of millions in federal funds intended to nourish vulnerable children during a time of crisis, redirecting those resources into luxury homes, high-end vehicles and extravagant lifestyles while families faced hardship,” he said. 

TRUMP, STATES BACK IN COURT OVER SNAP AS BENEFITS REMAIN IN LEGAL LIMBO

Republican Speaker of the House Lisa Demuth speaks during a press conference in the governor’s reception room at the Minnesota Capitol in St. Paul, Minn., May 15, 2025. (Jerry Holt/The Minnesota Star Tribune via Getty Images)

 

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Charging documents show that roughly 300 “food sites” in the state served little or no food, with the so-called food vendors and organizations fabricated to launder money intended to reimburse the cost of feeding children.

Senior FBI officials told Fox News that the investigation and resulting trials and indictments continue to impact the state and have already touched off legislative reform in Minnesota.

They added that the investigation into the fraud remains ongoing, and that additional charges were expected. 

Stealing from the federal government equates to stealing from the American people — there is no simpler truth,” FBI’s special agent in charge, Alvin Winston, told Fox News Digital in a statement at the time.

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South Dakota

SD Lottery Powerball, Lotto America winning numbers for June 15, 2026

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The South Dakota Lottery offers multiple draw games for those aiming to win big.

Here’s a look at June 15, 2026, results for each game:

Winning Powerball numbers from June 15 drawing

25-55-57-60-62, Powerball: 23, Power Play: 2

Check Powerball payouts and previous drawings here.

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Winning Lotto America numbers from June 15 drawing

01-15-18-30-46, Star Ball: 02, ASB: 03

Check Lotto America payouts and previous drawings here.

Winning Millionaire for Life numbers from June 15 drawing

12-14-20-54-58, Bonus: 04

Check Millionaire for Life payouts and previous drawings here.

Feeling lucky? Explore the latest lottery news & results

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Are you a winner? Here’s how to claim your prize

  • Prizes of $100 or less: Can be claimed at any South Dakota Lottery retailer.
  • Prizes of $101 or more: Must be claimed from the Lottery. By mail, send a claim form and a signed winning ticket to the Lottery at 711 E. Wells Avenue, Pierre, SD 57501.
  • Any jackpot-winning ticket for Dakota Cash or Lotto America, top prize-winning ticket for Lucky for Life, or for the second prizes for Powerball and Mega Millions must be presented in person at a Lottery office. A jackpot-winning Powerball or Mega Millions ticket must be presented in person at the Lottery office in Pierre.

When are the South Dakota Lottery drawings held?

  • Powerball: 9:59 p.m. CT on Monday, Wednesday, and Saturday.
  • Mega Millions: 10 p.m. CT on Tuesday and Friday.
  • Lucky for Life: 9:38 p.m. CT daily.
  • Lotto America: 9:15 p.m. CT on Monday, Wednesday and Saturday.
  • Dakota Cash: 9 p.m. CT on Wednesday and Saturday.
  • Millionaire for Life: 10:15 p.m. CT daily.

This results page was generated automatically using information from TinBu and a template written and reviewed by a South Dakota editor. You can send feedback using this form.



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Wisconsin

Wisconsin schools added thousands of staff despite enrollment falling

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Wisconsin schools added thousands of staff despite enrollment falling


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  • Wisconsin public schools have seen a 9% drop in student enrollment since 2011 but a 7% increase in staffing.
  • The decline in student population is largely attributed to the state’s falling birth rate since 2007.
  • Despite fewer students, districts have hired more staff to address growing needs, like mental health and academic gaps.
  • Financial strain from this trend may force districts to close schools, reduce staff or cut educational programs.

Wisconsin public schools are employing more staff despite serving about 80,000 fewer students than they did 16 years ago, according to a new report from the Wisconsin Policy Forum.

Since the 2010-11 school year, the number of students enrolled in the state’s public schools has fallen more than 9% to about 792,000 students this school year. Meanwhile, the number of staff in schools increased 7%, and the number of public schools decreased about 3%, the Policy Forum reported.

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With state funding tied to student counts, enrollment declines put additional strain on district budgets. The Policy Forum warned “the cost pressures of increased staffing will grow” as districts seek to maintain their workforces with shrinking revenues.

Combined with other financial constraints, including growing student needs and revenue limits that haven’t kept up with inflation, “districts will likely face tough financial decisions around closing schools, reducing their workforce, or cutting educational programming,” the Policy Forum said.

Here are five takeaways from the report:

Elementary schools see biggest enrollment drop

Enrollment trends varied across Wisconsin. Students, schools and staff declined in urban school districts. In suburban districts, enrollment remained stable and staffing increased nearly 19% since 2011. Both town and rural districts lost students but expanded staff.

The Policy Forum attributed the enrollment loss to the state’s declining birth rate, which has continuously fallen since 2007.

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Over the past 16 years, elementary school enrollment dropped about 16%, compared with nearly 9% in middle schools and about 8% in high schools, the organization reported.

Fewer schools but closures haven’t kept pace with enrollment decline

In response, some districts have closed or consolidated schools to reduce costs. The number of public schools in Wisconsin decreased from 2,202 schools in 2011 to 2,132 in 2026.

The number of elementary schools decreased 9%, and the number of high schools decreased nearly 6%, according to the Policy Forum. However, the number of standalone middle schools increased by about 7%, and schools serving both elementary and high school students – many of them charter schools – grew more than 150%.

Private schools in Wisconsin also declined more than 8% over the past 16 years.

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Even so, the decline in the number of schools hasn’t kept pace with the loss of students. The Policy Forum said it’s hard for districts to close schools or cut staff because student losses are typically spread across grade levels and buildings.

“Staffing cuts and school closures are also unpopular and painful for districts and communities, leaving leaders with difficult decisions and tradeoffs,” the report said.

MPS is cutting some staff, but adding jobs, too

For Milwaukee Public Schools, where enrollment has long been on the decline, outside consultants have suggested permanently closing five schools on the city’s north side. Superintendent Brenda Cassellius has said she isn’t yet ready to recommend closing those schools but does eventually expect to call for closures over multiple years.

The district’s budget for the upcoming school year also includes more than 260 cuts to non-classroom staff positions, though it also adds more than 150 new paraprofessionals and 150 teachers.

Paraprofessionals and other aides added across Wisconsin

Across Wisconsin, the number of classroom teachers has grown by less than 1% since 2011, or about 470 additional full-time equivalent positions. Schools have also added the full-time equivalent of more than 3,360 paraprofessionals and program aides, a nearly 31% increase, according to the Policy Forum.

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Overall, teachers and paraprofessionals in classrooms increased by more than 5%. The number of all other licensed staff members – including district administrators, principals, counselors, therapists and other school support staff – increased by the full-time equivalent of 1,849 positions, or nearly 16%.

No effective alternative, district leaders say

District leaders told the Wisconsin Policy Forum they have expanded staffing to address growing student needs, including mental health challenges, widening academic gaps and increased numbers of students who have disabilities or are English learners.

Still, “district leaders expressed frustration with employing more staff for fewer students, but said they have not found an effective alternative,” the report said.

With enrollment projected to continue falling, the Policy Forum said districts will likely keep relying on property tax referendums to maintain services and staffing levels. The organization said district leaders may also seek additional support from the state, and lawmakers have an opportunity to “consider how to best protect student learning during this demographic shift.”

Kayla Huynh covers K-12 education, teachers and solutions for the Journal Sentinel. Contact: khuynh@gannett.com. Follow her on X: @_kaylahuynh.

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Kayla Huynh‘s reporting is supported by Herb Kohl Philanthropies and reader contributions to the Journal Sentinel Community-Funded Journalism Project. Journal Sentinel editors maintain full editorial control over all content. To support this work, visit jsonline.com/support. Checks can be addressed to Local Media Foundation (memo: “JS Community Journalism”) and mailed to P.O. Box 85015, Chicago, IL 60689.

The JS Community-Funded Journalism Project is administered by Local Media Foundation, tax ID #36-4427750, a Section 501(c)(3) charitable trust affiliated with Local Media Association.



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Detroit, MI

New home demand, construction soften in Metro Detroit amid high rates

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New home demand, construction soften in Metro Detroit amid high rates


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Buyers are still shopping for newly built homes in Metro Detroit, but fewer are moving quickly to sign contracts as higher borrowing costs pressure household budgets.

That’s what Darian Neubecker, president of Bloomfield Hills-based Robertson Brothers Homes, is seeing across the company’s communities. While potential buyers continue to research the homebuilding process, website traffic and in-person visits have declined from a year ago.

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“There are certainly folks doing homework on buying,” Neubecker said. “I think as soon as we see relief on interest rates, we’ll see sales activity pick back up.”

Neubecker attributed the slowdown to temporary factors, such as higher mortgage rates amid geopolitical factors, including the U.S.-Israel war with Iran. And those factors are impacting new home activity.  

Builders pulled 931 single-family permits across Macomb, Monroe, Oakland, St. Clair and Wayne counties through April, marking the second-slowest start to a year since 2012, according to the Home Builders Association of Southeastern Michigan.

In April, builders pulled 310 single-family permits across the five-county region, down 18.4% from 380 permits a year earlier. The decline was led by Wayne County, where permits fell 30.2%, while Oakland County permits dropped 16.5% and Macomb County permits fell 12.1%.

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One bright spot: April activity was up slightly from March, when builders pulled 302 permits. While the need for housing remains strong, higher mortgage rates and home prices have reduced affordability and caused some prospective buyers to delay purchasing decisions, economists say.

Mortgage rates remain elevated, with a 30-year fixed loan averaging around 6.5% in recent Freddie Mac data.

“Everybody’s basically waiting to see what happens to mortgage rates, and they have been like on a seesaw,” said Daniil Manaenkov, U.S. forecasting specialist for the University of Michigan’s Department of Economics. “So you would get some improvements, it would start edging down, but then something would happen, and rates would edge back up.”

Manaenkov said housing activity today more closely resembles pre-pandemic levels than the market after COVID-19, when low borrowing costs fueled demand and construction.

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The market has softened, though it’s relatively stable rather than severely depressed, Manaenkov said.

Market’s ‘one-two punch’

One recent morning, Neubecker stood inside a two-bedroom townhome under construction at the Scripps District development along Trumbull Avenue in Detroit’s Woodbridge neighborhood.

As crews worked throughout the partially finished development, he spoke of the property’s features and the state of the homebuilding market. The project includes 65 two-bedroom townhomes priced from the upper $300,000s. Construction began about two years ago and is expected to be completed in 2027.

Neubecker said it has been one of Robertson Brothers Homes’ strongest-selling communities, outperforming the company’s other southeast Michigan developments during its early months on the market.

The company has about 100 homes under construction across southeast Michigan, and he estimates sales are down between 15-20%. Some of the other communities in Metro Detroit have seen a slowdown in sales, including developments in Troy and Lyon Township.

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He said recent softness in buyer demand is showing up in early-stage sales data and could mean lower permit activity in the near future, Neubecker said: “Sales is always a three- to six-month leading indicator of permit activity.”

He expects the slowdown to be temporary. “Long term, not worried; medium term, not worried,” he said. “Short term, I would classify it as a nuisance more than anything.”

Vito Castellana, owner of V.I.P Homes & Development, said the most significant slowdown is occurring at the entry-level segment of the market, where affordability is the toughest.

In Burton near Flint, he said the company is building 1,500-square-foot single-story condos priced in the high $200,000s and 2,000-square-foot two-story colonials priced in the low $300,000s. Among the company’s other projects are seven single-family homes in Sterling Heights, ranging from 2,600 square feet to 4,000 square feet with three-car garages priced in the $800,000s.

Castellana said many potential buyers are pausing due to current mortgage rates and the desire not to lose the low rates they have on their present homes.

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“The market is a little bit slower than what we’re used to, given costs and given interest rates, so it’s kind of a one-two punch right now,” he said. “So it’s not as robust as we’re used to seeing in previous … spring to summer markets.”

Vito said that has changed the broader housing mix for his company, which is putting more emphasis on multifamily and rental housing as buyers prioritize flexibility.

He said construction costs have also impacted housing prices, noting long-term increases in land and development expenses. For example, the home pricing in Burton starting in the high $200,000s is possible because the company purchased the land about 10 years ago, he said.

“If you had to go develop and put those lots in (now), it might cost tenfold of what we paid for them,” he said. “And this is just hypothetically speaking, like, if I sold that house for $320,000 last week, if we had to put the lots in and put the improvements in, like in current market rate, it could probably potentially be — that $320,000 could be a $420,000 home.”

Joel Berner, senior economist at Realtor.com, said that in the Northeast and Midwest markets, including Detroit, the focus is on higher-priced homes that better accommodate cost constraints.

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“New construction has been expensive,” he said. “It’s really kind of operated as a luxury product, hasn’t really competed with existing homes on price so much.”

Berner also pointed to a tight market for skilled labor, rising material costs and the challenges of urban infill development as factors that make it hard to offer lower-priced homes in places like Michigan.

‘Consistent level of activity’

Despite the ups and downs, some buyers are still in the market.

Lucy Kollin, 50, of Troy is building a four-bedroom home in Robertson Brothers Homes’ Village at Clawson Park development. It’s been a two-year research process, she said.  

Kollin, a real estate agent, previously lived in a Robertson-built condo and wanted another new build close to downtown Birmingham.

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She decided to purchase a 2,400-square-foot single-family home with a base price of $600,000. She expects the house to be finished by the end of August.

“If you want something, keep looking,” she said. “Don’t give up.”

The overall slowdown in permits has not brought construction activity to a complete halt. Michele Chirco, general counsel for home-builder MJC Companies, said sales have remained largely in line with last year for his company.

“We’re still seeing pretty consistent level of activity,” he said. “Doesn’t really feel too much different than what we’ve seen through most of last year.”

Affordability continues to limit how much builders can raise prices, he said, while material and labor costs have become more predictable after years of pandemic-era supply disruptions and tariff-related uncertainty.

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MJC Companies has about 20 speculative single-family homes under construction that have not yet been sold, Chirco said, and about 60 homes under contract across its communities.

“We have probably a larger percentage of homes that we start as spec homes,” he said. “We tend to keep maybe three to five homes within a community that we start without a buyer, just to make that decision and that process easier for anybody looking for new construction.”

Shanta Favors, 43, lives in MJC Companies’ Cypress Gardens subdivision in Taylor. She says she has watched new phases of construction fill in around her home.

“I do like the fact that it’s a community, a whole community,” she said, describing how the subdivision has grown into a fuller neighborhood over time, even as affordability has become more difficult for new buyers.

Favors, a disability advocate, purchased her home in 2020 for $301,000 after customizations designed to make things accessible for her wheelchair use. She figures her home is valued at about $500,000 now.

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“There are people still buying in this subdivision,” she said.

cwilliams@detroitnews.com



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