Midwest
Trial begins for 7 Minnesotans charged with stealing more than $40 million from pandemic food program
Opening statements are expected Monday in the fraud trial of seven people charged in what federal prosecutors have called a massive scheme to exploit lax rules during the COVID-19 pandemic and steal from a program meant to provide meals to children in Minnesota.
The seven will be the first of 70 defendants to go on trial in the alleged scam. Eighteen others have already pleaded guilty.
Prosecutors have said the seven collectively stole over $40 million in a conspiracy that cost taxpayers $250 million — one of the largest pandemic-related fraud cases in the country. Federal authorities say they have recovered about $50 million.
10 CHARGED IN SCHEME TO DEFRAUD FOOD PROGRAM FOR LOW-INCOME CHILDREN IN MINNESOTA
Prosecutors say just a fraction of the money went to feed low-income kids, and that the rest was spent on luxury cars, jewelry, travel and property.
THE ALLEGED PLOT
The food aid came from the U.S. Department of Agriculture and was administered by the state Department of Education. Nonprofits and other partners under the program were supposed to serve meals to kids.
Two of the groups involved, Feeding Our Future and Partners in Nutrition, were small nonprofits before the pandemic, but in 2021 they disbursed around $200 million each. Prosecutors allege they produced invoices for meals that were never served, ran shell companies, laundered money, indulged in passport fraud, and accepted kickbacks.
THE BIG PICTURE
An Associated Press analysis published last June documented how thieves across the country plundered billions in federal COVID-19 relief dollars in the greatest grift in U.S. history. The money was meant to fight the worst pandemic in a century and stabilize an economy in freefall.
But the AP found that fraudsters potentially stole more than $280 billion, while another $123 billion was wasted or misspent. Combined, the loss represented 10% of the $4.3 trillion the government disbursed in COVID relief by last fall. Nearly 3,200 defendants have been charged, according to the U.S. Justice Department. About $1.4 billion in stolen pandemic aid has been seized.
THIS CASE
The defendants going on trial Monday before U.S. District Judge Nancy Brasel in Minneapolis are Abdiaziz Shafii Farah; Mohamed Jama Ismail; Abdimajid Mohamed Nur; Said Shafii Farah; Abdiwahab Maalim Aftin; Mukhtar Mohamed Shariff; and Hayat Mohamed Nur. They have all pleaded not guilty. Their trial is expected to last around six weeks.
MINNESOTA COURT RECEIVES 1ST ROUND OF GUILTY PLEAS IN $250M SCHEME TO DEFRAUD FEDERAL MEALS PROGRAM
“The defendants’ fraud, like an aggressive cancer, spread and grew,” prosecutors wrote in a summary of their case.
Prosecutors say many of the purported feeding sites were nothing more than parking lots and derelict commercial spaces. Others turned out to be city parks, apartment complexes and community centers.
“By the time the defendants’ scheme was exposed in early 2022, they collectively claimed to have served over 18 million meals from 50 unique locations for which they fraudulently sought reimbursement of $49 million from the Federal Child Nutrition Program,” prosecutors wrote.
FUTURE CASES
Among the defendants awaiting trial is Aimee Bock, the founder of Feeding our Future. She’s one of 14 defendants expected to face trial together at a later date. Bock has maintained her innocence, saying she never stole and saw no evidence of fraud among her subcontractors.
THE POLITICS
The scandal stirred up the 2022 legislative session and campaign in Minnesota.
Republicans attacked Gov. Tim Walz, saying he should have stopped the fraud earlier. But Walz pushed back, saying the state’s hands were tied by a court order in a lawsuit by Feeding Our Future to resume payments despite its concerns. He said the FBI asked the state to continue the payments while the investigation continued.
The Minnesota Department of Education now has an independent inspector general who is better empowered to investigate fraud and waste.
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Midwest
Michigan county plagued by 'burglary tourism' as foreign crime gangs abuse US visa waiver program
A Michigan sheriff is sounding the alarm on “burglary tourism” — a recent trend where international organized crime groups enter the U.S. to skillfully rob wealthy suburban homes.
“We believe that there has to be some kind of training camp because they come so well-trained, so equipped, and so knowledgeable about how to move and how to attack a home,” Oakland County Sheriff Michael Bouchard on Wednesday told “FOX & Friends.”
“They do a lot of pre-op surveillance. They determine as best they can when someone won’t be in a home. They go very quickly to the home, they break a window. They go through it, not opening a door or window. They have an electronic jammer.”
‘RAM RAIDING’ AND ‘CRASH AND GRAB’ NEW VIOLENT BURGLARY TREND TARGETING BRICK-AND-MORTAR BUSINESSES
Bouchard said the gangs, mostly from Chile, are then able to quickly target home safes and small high-end items.
“They’re very focused on high-end jewelry, like watches, cash, high-end purses… things that are highly, valuable and disposable. And out they go and they move on. They usually hit a number of homes in our area, and then they move on to another part of the country, and then another crew will come in. And it’s been a cycle,” he said.
Bouchard urged the State Department to reevaluate Chile’s participation in the U.S. Visa Waiver Program, which allows tourists and business travelers to enter America for 90 days or less without having to obtain a visa or go through a thorough vetting process.
“All we’re asking is that the federal government either pause or discontinue Chile from that program. Now, that doesn’t mean they can’t come and visit from Chile. They just have to get a traditional visa with a higher level of scrutiny and background than what happens currently with the BWP,” he said, adding that Colombians entering the U.S. through the southern border are also contributing to the crimes.
Similar crimes have been reported in California, New Jersey and New York.
Orange County District Attorney Todd Spitzer has been warning about the issue since last summer, calling the Southern California burglaries “carefully calculated and planned.”
Spitzer filed a lawsuit against the Biden administration for failing to respond to public records requests involving documentation on the issue. He has also called on Homeland Security Secretary Alejandro Mayorkas to use his powers to strike Chile from the program.
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The South American nation, which the State Department describes as a regional leader for the rule of law and economic stability, is the only Latin American country on the 41-country list.
Fox News’ Michael Ruiz and Bradford Betz contributed to this report.
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Detroit, MI
Detroit smoke shop shut down for selling marijuana without license
DETROIT – A smoke shop on Detroit’s east side is shut down by the city after police say the business was caught selling marijuana without a license.
Vapes on Pointe on Warren Avenue had an orange sign across its door, sealing it shut.
Police say the shop was brought to their attention after community members reported a minor was sold marijuana at the establishment.
“My great nephew came up here and made some purchases, (he’s) 14 years old,” said Deboraha Underwood. “Weed, edibles, vape pen.”
Underwood got police and community activists involved.
“Our Vice unit did a subsequent investigation and was able to purchase some marijuana items from this location, at which time we made some arrests, executed a search warrant, and had to effectively close down the building,” said Detroit Police Commander Jevon Johnson.
Community activist Teferi Brent works with a group raising awareness about shops selling tobacco or marijuana products to minors.
“The police did the right thing in responding immediately,” said Brent.
Brent said this is the fifth shop they’ve helped police shut down.
“There may be 500 more,” Brent said. “If that’s what it takes to get these people to stop selling poison to our children.”
–> Activists rally against tobacco shops selling to minors in Detroit
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Milwaukee, WI
Milwaukee electric scooters return for good, reactions mixed
MILWAUKEE – Love them or hate them, electric scooters are back on Milwaukee streets – this time, for the long haul.
The city’s Department of Public Works said Lime and Spin e-scooters are back for good. It comes after three pilot studies on a variety of e-scooter vendors – monitoring costs, safety and usage.
“It’s very convenient, instead of wasting gas and even having trouble finding parking,” said Naziear Harvey.
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During the final pilot study, which ran from 2022 to 2023, the city said it received $400,000 in revenue from e-scooters.
“I kind of want to get my own electric scooter, but until then you can use this for like $1.39,” Harvey said.
Riders like Harvey like the convenience of e-scooters; all you have to do is scan and pay to ride. Others, not so much.
“Despite being very quick ways to get around, they are pretty dangerous,” said Rebecca Gerrits.
There is no timeline for when e-scooters will be put away. City officials urge riders to follow the rules – which include staying off sidewalks – and be safe.
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