Minnesota Attorney General Keith Ellison is under scrutiny for allegedly downplaying a $250 million fraud involving federal child nutrition programs, with critics labeling the situation as “gangster government.”
At a Glance
- Attorney General Ellison faces allegations of minimizing a $250 million fraud linked to child nutrition programs
- Lawsuits have been filed to dissolve 23 nonprofits implicated in the scheme, including one connected to a Minneapolis council member’s wife
- Feeding Our Future is identified as a central organization in the fraudulent activities
- Federal investigations have led to multiple indictments and guilty pleas
- Ellison and Governor Walz defend their actions, citing cooperation with federal authorities
Allegations Against Attorney General Ellison
Minnesota Attorney General Keith Ellison is facing mounting criticism for his handling of a $250 million fraud case involving federal child nutrition programs. Critics accuse Ellison of failing to act quickly and transparently, suggesting he attempted to downplay the scheme’s severity—an accusation that has sparked outrage and cries of “gangster government.”
The scandal revolves around funds that were supposed to support child meal services during the pandemic but were instead funneled into luxury spending and fraudulent shell companies. At the center of the controversy is Feeding Our Future, a nonprofit accused of serving as the conduit for a sprawling embezzlement operation.
Watch CBS Minnesota’s report on the incident.
Legal Action Against Nonprofits
Ellison’s office has filed lawsuits to dissolve 23 nonprofits allegedly involved in the scheme, including Urban Advantage Services (UAS), a group incorporated by Ilo Amba, the wife of Minneapolis City Councilman Jamal Osman. While neither Osman nor Amba has been charged criminally, the lawsuit describes UAS as a “fraudulent shell company” that received significant sums without providing legitimate services.
According to reporting by MPR News, UAS was one of many entities allegedly created to exploit lax oversight in the federal child nutrition reimbursement system. Some were registered with false addresses and failed to properly report their operations.
Feeding Our Future’s Role in the Fraud
Federal prosecutors allege that Feeding Our Future played a central role in distributing fraudulent reimbursements through a network of shell companies. These entities reportedly filed falsified documents to claim meals that were never served, diverting taxpayer dollars into extravagant personal purchases.
Feeding Our Future’s reported federal reimbursements skyrocketed from $3.4 million in 2019 to $200 million by 2021, raising red flags that ultimately triggered an investigation. According to CBS News Minnesota, this escalation prompted the Minnesota Department of Education to alert federal authorities.
Federal and State Investigations
The FBI, in partnership with the Department of Agriculture, launched a sweeping investigation in May 2021. The probe spanned multiple continents, involved over 100 agents, and resulted in 50 total indictments. Four defendants have already pleaded guilty.
Ellison defended his office’s conduct, asserting that “we contacted the Department of Agriculture, then we contacted the FBI, and we collaborated every step of the way.”
Governor Tim Walz echoed that sentiment, saying the state acted appropriately once the scope of the fraud became clear.
Ongoing Fallout
Feeding Our Future reportedly received about $244 million in federal reimbursements—slightly below the $268.4 million tracked by the Department of Education. Both criminal and civil cases are still unfolding as officials attempt to recover stolen funds and hold those involved accountable.
As the legal proceedings continue, critics remain focused on the state’s initial inaction and oversight gaps. Ellison and Walz continue to push back, emphasizing the unprecedented scale of the fraud and the complexity of the investigation.
