Lawsuit alleges bakery, nonprofit submitted false claims worth millions to Minnesota Department of Education
Minnesota Attorney General Keith Ellison has filed two civil lawsuits alleging a Minneapolis bakery, a now-defunct nonprofit and others submitted false claims worth millions of dollars to the Minnesota Department of Education.
Lawsuit against Nasib Bakery
One lawsuit says Nasib Bakery was a vendor for several sites that reportedly served food through federal nutrition programs during and after the COVID-19 pandemic. The bakery was a vendor for a Summer Food Service Program site known as Riverside Park from October 2020 to April 2021. The lawsuit says the bakery's owner also ran the site.
The suit says the site claimed to have served more than 430,000 breakfasts and 430,000 lunches, or more than 860,000 meals in all, and sought more than $2.8 million in federal reimbursements over the six months.
The lawsuit says, "Records show that many of these claims were false and many of the meals claimed were never served."
The Minnesota Department of Education administers the federal program in the state.
Lawsuit against East African Healthcare Network and others
The other lawsuit is against East African Healthcare Network, three food vendors and six people. The lawsuit describes the nonprofit as one of the largest organizations responsible for distributing food for Minnesota children through federal child nutrition programs during the pandemic.
Ellison alleges the nonprofit, the businesses and the individuals worked together to submit false claims, or caused false claims to be submitted, to the Department of Education, and falsified records to support them.
The lawsuit says the nonprofit operated more than a dozen food distribution sites across Minnesota between 2020 and 2022. It claimed to have served millions of meals and snacks for children under the Summer Food Service Program, the court document says. The organization allegedly contracted with the three food vendors, who agreed to purchase and prepare meals and snacks for children in accordance with federal program requirements.
"EAHN with its vendors received over $10 million in meal claims reimbursement from federally funded nutrition programs," according to the lawsuit.
The lawsuit went on to say that the defendants engaged in a scheme to fabricate records to fraudulently claim state and federal funds that they weren't entitled to.
Both lawsuits seek "treble damages, civil penalties per false claim, injunctive relief, and recovery of his Office's attorney fees and costs in connection with the investigation and litigation," according to Ellison's office.
This story will be updated.
