Fraud, waste and abuse: the Minnesota fraud scandals, part 1: the targeting of child nutrition programs

Self-tutoring about current events: the tutor mentions one aspect of the Minnesota fraud scandals.

The following is according to my understanding.

Disappointingly, one hears more and more about scams and fraud. Likely one reason is that penalties for them remain low relative to the amount of money that successful scams can generate. The Minnesota fraud scandals might enter one’s mind as an example – for instance, the child nutrition angle.

The scope of this particular fraud is hard to believe. However, it seems to involve federal payouts for around 91 million meals supposedly served to children. Yet, it seems the meals were falsified: the value of the fraud seems to be around 240 million. Apparently, some perpetrators used proceeds for lifestyle purchases, real estate, etc.

As of now, it seems 78 people have been charged, 57 convicted, in connection with the 240 million scam. If it turns out 60 are convicted, that’s four million per perpetrator.

Be advised: it seems another angle – the Medicaid fraud – might run into the billions.

Taxpayers don’t seem to realize that every dollar they remit is a potential target of a fraudster. With the widespread opinion that the working stiff carries an unfair share of the tax burden, it’s even more troubling.

Source:

cato.org

justice.gov