Minnesota AG recovers $18.5M from Partners in Nutrition in child nutrition fraud settlement
Minnesota fraud: Nonprofit reaches $18.5M settlement
Minnesota nonprofit. Partners in Nutrition, has agreed to pay all of its remaining funds, $18.5 million, and dissolve as entity after it settled a civil lawsuit with the Minnesota Attorney General.
MINNEAPOLIS (FOX 9) - The Minnesota Attorney General's Office says nonprofit Partners in Nutrition (PIN) paid $18.5 million in a settlement after it was accused of fraudulently taking child nutrition funds for years.
Partners in Nutrition to pay millions
What we know:
Minnesota Attorney General Keith Ellison says he filed a lawsuit and received an $18.5 million settlement from PIN.
The lawsuit says PIN defrauded millions of dollars from the state in federal child nutrition funds. Ellison claims that from October 2020 to February 2022, PIN repeatedly submitted false claims to the Minnesota Department of Education (MDE) for meals that were never served, which led to widespread fraud in the food distribution sites it was supposed to be monitoring.
PIN has agreed to pay $18,517,909.27, which is all the funds in the nonprofit's possession. PIN has also agreed to provide more documentation on its role as a food program sponsor, and they will dissolve as an entity.
If PIN does not follow the agreements, it could have to pay a civil penalty of $1 million.
What they're saying:
"Claiming millions of dollars in taxpayer-funded reimbursements for astronomical amounts of meals that were never delivered to Minnesota’s children is despicable," said Ellison. "Today’s settlement holds PIN accountable for defrauding the State and recoups $18 million in taxpayer funds, but it cannot adequately address the erosion of Minnesotans’ trust in government programs that bad actors like PIN and Feeding Our Future have caused. This fight is not over. My office continues to actively investigate a number of individuals and entities affiliated with PIN for violations of the Minnesota False Claims Act."
Read the full lawsuit below:
What we don't know:
It is not known if PIN will be prosecuted criminally, as the Attorney General's Office only had civil legal authority over federal child nutrition fraud. The federal government or county attorney have the authority to prosecute the nonprofit criminally.
The Source: A press release from the Minnesota Attorney General's Office.