Federal officials tout seizure of 'half a city block' in Minneapolis fraud case

MINNEAPOLIS (FOX 9) - Federal officials announced a new effort to recover Minneapolis real estate allegedly purchased with stolen child nutrition funds Tuesday, describing the properties as "half a city block" during an Oval Office appearance with President Donald Trump.

However, the potential seizure seems to amount to one home and a business on a small block near the Karmel Mall.

Minneapolis buildings face seizure

What they're saying:

FTC Chairman Andrew Ferguson and Assistant AG Colin McDonald announced the seizure during a news conference Tuesday afternoon as the White House unveiled a $25 million program to reward whistleblowers who uncover fraud.

During the news conference, Ferguson lauded the efforts of the newly created National Fraud Division within the Department of Justice, which is led by McDonald.

"Just yesterday, they filed to seize half a city block in Minneapolis, Minnesota, with property that had been obtained with SNAP dollars that should have gone to hungry Minnesotans and was instead used to buy – illegally and fraudulently – property in Minneapolis," explained Ferguson.

It should be noted the fraud appears to be connected with child nutrition meal program claims – not SNAP benefits as Ferguson stated.

What we know:

According to paperwork filed in federal court in Minnesota, authorities are targeting three addresses covering only two buildings in the area of Pillsbury Avenue near 29th Street West in Minneapolis near Karmel Mall.

At this point, authorities have not yet seized the properties. They are currently seeking civil forfeiture and working to post notice on the properties.

One building appears to be a home or apartments. The other is an auto shop. The buildings do account for two of the three buildings on that side of the short block. However, Karmel Mall, directly to the south, occupies most of the area.

Partners in Nutrition fraud

The backstory:

The three addresses are connected to the organization Partners in Nutrition, which agreed to dissolve just last month as part of a civil fraud settlement. Partners in Nutrition acted as a sponsor for federal nutrition programs – the same programs that were exploited by Feeding our Future. Authorities say those vendors submitted millions in false claims for meals they never served.

Partners in Nutrition was accused by authorities of turning a blind eye to fraud being committed by vendors it sponsored during the COVID-19 pandemic. As part of the settlement with Attorney General Keith Ellison's Office, Partners in Nutrition agreed to pay $18.5 million.