Trump, House Republicans launch new probes into Minnesota COVID fraud scheme

president Donald Trump Congressional allies are investigating the sprawling “Feed Our Future” fraud scheme in Minnesota and are pressing federal agencies to recover millions in stolen taxpayer money, including money that individuals convicted in the scheme used to finance the purchase of luxury cars and homes that most Americans cannot access.

Republicans say the renewed investigations are necessary because, despite dozens of convictions, federal officials are still working to recover only a small portion of the stolen money — an operation that has uncovered not only luxury vehicles and homes, but also designer goods and large sums 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.

The discussion revolves around a $250 million fraud scheme Exploiting the child nutrition program Funded by the USDA and overseen by the State of Minnesota during the COVID-19 pandemic, with the stated goal of providing food to school-age children.

The scheme took advantage of the USDA’s decision to waive many of its standard requirements for the Federal Child Nutrition Program during the pandemic, including relaxing requirements for out-of-school distributors to participate in the program.

What to know about Minnesota’s ‘Fueling our future’ scam at the center of Trump’s latest campaign

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

The accused conspirators in the scheme falsely claimed to have provided millions of meals to children during the pandemic, but instead used the money for personal gain, according to federal authorities. They are also accused of fabricating invoices, submitting false attendance records, and falsely distributing thousands of meals from hundreds of so-called food distribution “sites” across the state.

At least 77 individuals have been charged in Minnesota 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.

Trial testimony and photos previously introduced as evidence in the case showed more than $64,000 in cash and gold jewelry purchased in Dubai and four vehicles, including a brand-new Tesla and Porsche, seized from the home and cars of one of the defendants, along with financial records for a $1.1 million Prior Lake property he purchased to build an 8,000-square-foot custom lake house. The Minnesota Star Tribune reported At the time of trial.

But efforts to recover at least some of the stolen money have been a bit slower. So far, federal officials have recovered an estimated $60 million in funding stolen as part of the “Feed Our Future” scheme, according to estimates provided by the state U.S. Attorney’s Office — less than half of the $250 million stolen.

Slow recovery efforts are not for lack of trying. Last month, a federal judge in the state ordered one of the defendants to pay $48 million in restitution money, in addition to sentencing him to 10 years in prison as part of his role in the sprawling fraud effort.

Patel touts dozens of FBI convictions in $250 million Minnesota coronavirus scam

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

Other convicted individuals were also ordered to return millions of dollars to the government to recover stolen taxpayer money.

However, the process can be complex and difficult. That’s because recovering stolen money often involves tracking it to see how it was spent — including U.S. property and vehicles, and then seizing those items for confiscation — which can contribute to delays.

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

Others transferred money abroad to shell companies, while at least some others appear to have spent the money to pay off their credit card bills, or fund their “lavish lifestyles,” according to information provided by the Justice Department.

In the case of Abdul Majeed Mohamed Nour – the defendant who was ordered to pay $48 million in compensation – the stolen money was sent to a shell company. It is estimated that Noor spent the bulk of the $900,000 fraud proceeds through his shell company, using that money to purchase new cars, a honeymoon in the Maldives and jewelry.

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

“These individuals embezzled hundreds of millions in federal funds intended to feed vulnerable children during a time of crisis, and redirected those resources to luxury homes, luxury vehicles, and extravagant lifestyles while families faced hardship,” he added.

Trump and US go back to court over SNAP as benefits remain in legal limbo

Republican House Speaker Lisa Demuth speaks during a news conference in the Governor’s Reception Room at the Minnesota State Capitol in St. Paul, Minnesota, May 15, 2025. (Jerry Holt/Minnesota Star Tribune via Getty Images)

CLICK HERE TO GET THE FOX NEWS APP

Charging documents show that nearly 300 “food sites” in the state serve little or no food, with so-called food vendors and fabricated money-laundering organizations aimed at paying the cost of feeding children.

Senior FBI Officials He told Fox News that the investigation, trials and resulting indictments continue to impact the state and have already sparked legislative reform in Minnesota.

They added that the fraud investigation is still ongoing, and additional charges are expected.

“theft “From the federal government is equivalent to stealing from the American people — there is no simpler truth,” Alvin Winston, FBI Special Agent in Charge, told Fox News Digital in a statement at the time.