A week after FBI agents raided the offices of Minnesota nonprofit Feeding Our Future after accusations the group's partners allegedly defrauded the federal government of millions of dollars, evidence of the raid is seen in the offices Jan. 27, 2022, in St. Anthony, Minn. (Shari L. Gross/Star Tribune via Getty Images)
While state officials began questioning Feeding our Future prior to 2020, the nonprofit went on offense that year and sued the MDE in state court, claiming that the department’s lack of action on applications for new food distribution sites during the COVID-19 pandemic amounted to discrimination against Somalians.
The lawsuit was settled after about one month and involved the MDE agreeing to respond to the applications.
But the litigation did not stop there. Months later, the MDE stopped administering payments to Feeding our Future because of what it said were "serious deficiencies," leading Feeding our Future to bring another court challenge, and the MDE resumed the payments.
Feeding our Future became the subject of a massive FBI investigation that uncovered allegedly more than $250 million in fraud and led to dozens of indictments. At the time of the initial wave of indictments, then-Attorney General Merrick Garland accused the nonprofit of committing the "largest pandemic relief fraud scheme charged to date."
When the case broke open, the Minnesota court system put out a rare, lengthy statement countering media claims that a judge ordered the MDE to resume the payments. The court system instead said the department acted voluntarily to resume payments to the nonprofit.
MINNESOTA'S $70 MILLION FRAUD EXPOSES HOW DEMOCRATS BUILT A SYSTEM DESIGNED TO BE ROBBED
Minnesota Attorney General Keith Ellison testifies during a House Financial Services hearing, March 9, 2023. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
"The Department of Education denied claims when questionable claims were made about these meals. My office went to court, explained that to the court … We are very able to go after fraud, and we do all the time," Ellison said.
A legislative auditor, however, found last year the MDE failed to responsibly oversee the nonprofit and enabled fraud, and cited the discrimination lawsuits as a factor.
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State officials were concerned with legal risks once Feeding our Future began threatening to sue, and "the threat of legal consequences and negative media attention affected MDE’s decisions about the regulatory actions it did and did not take against Feeding Our Future," the audit report said.
"We believe MDE’s actions and inactions created opportunities for fraud," the report said.
Ashley Oliver is a reporter for Fox News Digital and FOX Business, covering the Justice Department and legal affairs. Email story tips to ashley.oliver@fox.com.
https://www.foxnews.com/politics/nutrition-programs-lawsuit-triggers-mn-education-dept-ease-oversight-opening-door-more-fraud